Soumitra Pal, J. - (1.) In the instant writ petition, the petitioners have challenged the notices dated December 31, 1998, issued by respondent No. 2, seeking to reopen the assessments for the assessment years 1992-93 and 1993-94 under Section 148 of the Income-tax Act, 1961 (for short "the Act"). It is appropriate to set out paragraph 2 of the recorded reasons for such reopening, which is as under : "As requested for I am intimating the recorded reasons for reopening of the assessments for the assessment years mentioned above which is as under : Because of incorrect interpretation of accounts by the Assessing Officer the assessee got the benefit of loss of Rs. 34,40,715 for the assessment year 1992-93 which was carried forward to subsequent years and adjusted as below : Rs. Loss for the assessment year 1992-93 34,40,715 Less : Taxable income for the assessment year 1993-94 adjusted 4,39,719 ___________ 30,00,996 Less : Taxable income for the assessment year 1994-95 adjusted 1,17,295 ___________ 28,83,701 Less : Taxable income for the assessment year 1995-96 adjusted 2,82,220 ___________ 26,01,461 Less : Taxable income for the assessment year 1996-97 adjusted 7,45,464 Balance unabsorbed losses ___________ 18,56,017 Since in the opinion of the then Assessing Officer the cases for the above assessment years were covered by Explanation 2 to Clause (c) to Section 147 which states that where an assessment has been made but income chargeable to tax has been under assessed, action under Section 147 was initiated."
(2.) In the affidavit in opposition, respondent No. 2 has annexed the proposal for reopening under Section 148 of the Act for the said assessment years. I find the recorded reasons as noted above are virtually a verbatim reproduction of paragraph 3 of the proposal,
(3.) In the recorded reasons, it has been stated that action under Section 147 of the Act has been initiated as there was an underassessment and the cases of the assessment years were covered by Explanation 2 to Clause (c) to the said section.;