ANIL STARCH PRODUCTS LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner company challenges in this petition under art. 226 of the Constitution of India, a notice issued by the respondent ITO, under S. 147(b) of the IT Act, 1961, hereinafter referred to as "the Act" , seeking to reopen the assessment proceedings for the asst. year 1975 76 corresponding to the accounting year 1974 75.

(2.) A few facts leading to this petition are required to be stated at this juncture.

(3.) THEREAFTER , it appears that the ITO addressed under S. 154 a notice dated January 20, 1978, to the petitioner company stating that an apparent error had crept in the original assessment in so far as he had allowed the amount of Rs. 71,045 and he proposed to rectify the said error by withdrawing the said deduction. The petitioner company gave a reply to the above notice objecting to the proposed rectification. It was pointed out by the petitioner company that there was no error in the assessment which would justify the ITO to have recourse to the (said) process under the Act. The ITO also issued a notice under S. 148 dated December 13, 1977, which is at Ex. C to the petition, stating that he had reason to believe that the petitioner's income for the above year had escaped assessment under S. 147 and asking the petitioner to submit a return. The petitioner company in order to avoid the legal consequences under S. 271(1)(a) of the Act for the late filing of a return, submitted the return by its letter dated December 22, 1977, requesting the ITO to intimate the reason for the notice. Thereafter, the ITO fixed a date for hearing the petitioner's objection to the reassessment proceedings and it is at that stage that the present petition is filed.