- (1.) The petitioner in this petition has challenged the issuance of notice under Sec. 148, of the Income Tax Act, 1961, for re-opening the assessment of income for the assessment Years 1987-88, 1988-89; on the ground that the Assessing Authority has not recorded the reasons for initiating proceedings before issuance of notice, as required by Sec. 148(2) of the Act. The recording of reasons is a condition of account before issuance of such notice. The challenge is also founded on the ground that the reasons recorded, if any, are not germane and are based on non-existent facts.
(2.) A return has been filed and the reasons that have been recorded by the Assessing Authority before issuance of notice under Sec. 148, have been produced for the perusal of this Court. The reasons recorded by the Income-tax Officer are as under: - M/s. Manohar Jewellers A/Y 87-88 27.8.90 "As per order passed u/s. 132(5) in this case, undisclosed income/unexplained credit to the extent of Rs. 70,000/- has escaped from assessment. Income was assessed at Rs. 93000/- while as per order u/s. 132(5), income comes to Rs. 1,63,000/-. Thus I have reason to believe that income of Rs. 70,000/- has escaped from assessment & to tax it, notice u/s. 148 read with Sec. 147 is issued. Sd/-........................" M/s. Manohar Jewellers A/Y 88-89 27.8.90 "As per order passed u/s. 132(5) in this case, undisclosed income/unexplained credit, to the extent of Rs. 95,000/- has escaped from assessment. Income was assessed at Rs. 98,000/- while as per order u/s. 132(5), income assessment comes to Rs. 1,91,000/- thus I have reasons to believe that income of Rs. 95,000/- has escaped from assessment & to tax it notice u/s. 148 read with Sec. 147 is issued. Sd/- (A. Agrawal)."
(3.) Therefore, the first contention of learned counsel for the petitioner that no reasons have been recorded, is factually not correct.;