KOHINOOR ENTERPRISES Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner by this petition has prayed that the notice dated September 10, 1993 (annexure "P-4"), issued under Section 148 read with Section 147 of the Income-tax Act, 1961, may be quashed.

(2.) THE brief facts giving rise to this petition are that the petitioner is a registered firm and followed the financial year as the accounting year. THE petitioner-firm took certain excise contracts in the auction held in February, 1984, and working of such contracts started from April 1, 1984. THE petitioner filed the return of income for the financial year 1984-85 relevant to the assessment year 1985-86. During the course of the assessment proceedings for that year, it was required to produce confirmation letters from the creditors giving their complete and detailed addresses, G. I. R. No. and the Income-tax Ward/Circle and mode of payment of the amounts. THE petitioner submitted written explanations on September 26, 1988, and September 27, 1988, with confirmation letters of loan creditors. In the written explanations, it was explained that the partners have introduced the invested capital on February 5, 1984, prior to getting auction allotted in their names and apart from the capital of the partners, loans to the tune of Rs. 15 lakhs were obtained from various parties whose confirmation letters with details of cheques and drafts by which the amounts were received, were filed. THE Income-tax Officer issued a notice under Section 148 of the Income-tax Act on October 11, 1988, proposing to assess and reassess the petitioner-firm for the said assessment year on the ground that the Income-tax Officer had reason to believe that the petitioner's income chargeable to tax for that year, had escaped assessment within the meaning of Section 147 of the Income-tax Act. THE notice was served on October 27, 1988, and no assessment was made in the reassessment proceedings commenced on October 11, 1988, within a period of one year, as required under the Act. THEreafter, on September 10, 1993, another notice under Section 148 of the Income-tax Act for the same assessment year, was issued which has been placed on record as annexure "P-4". This notice is being sought to be challenged by the petitioner by this petition on the ground that the earlier notice has not been concluded, therefore, the second notice could not have been issued.