Salil Kumar Datta, J. - (1.) This is an appeal against the judgment and order of Sabyasachi Mukharji J., dated May 14, 1976, discharging the rule obtained by the petitioner. The facts relevant arc as follows : The petitioner, appellant (hereinafter referred to as " the company ") duly filed its return along with its balance-sheet and profit and loss account for the assessment year 1969-70, showing an income of Rs. 2,61,307. D. K. Gupta, the Income-tax Officer, ' E ' Ward, Comp. Dist. I, Calcutta, by his order dated November 29, 1969, assessed the total income of the company for the said year under Section 143(3) at Rs. 3,13,059 disallowing various claims. On appeal, the Appellate Assistant Commissioner of Income-tax by order dated January 6, 1970, revised the total income to Rs. 2,92,208. The company thereupon became entitled to a refund of Rs. 11,026.04 and the same was given effect to by the Income-tax Officer. The company preferred an appeal to the Income-tax Appellate Tribunal against disallowance of the remuneration paid to the director for Rs. 23,000 and by its order dated September 29, 1972, the Appellate Tribunal allowed the remuneration, reducing the total income to Rs. 2,69,208 and increasing the refund to Rs. 12,650 and the order giving effect to the same was also served on the company.
(2.) It was alleged that at the time of the original assessment the company produced all its books of accounts and evidence relevant for the purpose and on full examination and satisfaction, the income was computed by the officer. There was, it was further alleged, no omission or failure on the part of the company to disclose fully and truly all material facts necessary for the assessment.
(3.) All on a sudden, on March 22, 1974, the company was served with a notice under Section 148 issued by D. P. Majumdar, Income-tax Officer, ' E ' Ward, C1, Calcutta, calling upon the company to deliver to him within thirty days of service a return in the prescribed form of its income for assessment year 1969-70 for reassessment by him. The notice recited that the said officer had reason to believe that the income of the company for the aforesaid assessment had escaped assessment within the meaning of Section 147 of the Income-tax Act, 1961.;