Sangeet Lodha, J. - (1.) In this writ petition, the petitioner, an assessee under the income Tax Act, 1961 (in short "the Act of 1961" hereinafter), has assailed the reassessment proceedings initiated by the Assessing Officer for the Assessment Year 2000 -01, vide impugned notice dated 26.3.07 issued in exercise of the power conferred u/s. 148 of the Act of 1961. The relevant facts in brief are that for the Assessment Year 2000 -01, the petitioner -assessee submitted a return claiming loss of Rs. 1,96,930.60 after adjusting the brought forward loss of Assessment Year 1999 -2000 to the tune of Rs. 4,11,183/ - and claiming a deduction of Rs. 1,00,000/ - u/s. 80P(2)(i) on a net profit of Rs. 3,14,269.40.
(2.) The petitioner was served with a notice dated 19.2.02 for rectification of the order in terms of Sec. 154 of the Act of 1961 on the ground that before claiming deduction u/s. 80P(2)(i), the losses of previous year has to be adjusted whereas, the petitioner has first claimed deduction and thereafter, the loss has been brought forward.
(3.) The petitioner submitted a reply to the notice that he has rightly claimed the deduction u/s. 80P(2)(i) of the Act of 1961, therefore, the proceedings may be dropped. After consideration of the reply filed by the petitioner, the Assessing Authority being of the opinion that in view of the carry forward losses of earlier year, it is not a case of levy of tax at all, proceeded to withdraw the notice being infructuous vide order dated 6.3.02.;