AI Structured Summary
Not yet generated for this judgment
Judgment
S.P. Bharucha, J.—We are concerned here with the assessment year 1978-79. The assessment of the petitioners for that assessment year was completed on September 19, 1981. The appeal filed therefrom was decided on December 7, 1981. Notice purporting to reopen the assessment u/s 147(b) of the Income Tax Act, 1961, was issued to the petitioners on October 11, 1982. The petitioners'' chartered accountants sought the reasons for the initiation of these reassessment proceedings. The Income Tax Officer declined to furnish the same and this was recorded by the chartered accountants on November 24, 1982. This writ petition impugns the notice.
There is no affidavit-in-reply. Dr. Balasubramaniam, learned counsel for the Revenue, said that "it seems" that the reassessment proceedings were initiated because of a judgment of this court. Asked if he stated that on the basis of the records of the Income Tax Department, he stated that he made the submission on the basis of a sheet of paper which accompanied his instructions. It is strange that the Revenue should not file an affidavit-in-reply though seven years have elapsed. It is stranger still that the concerned file could not be produced in court. And it is irresponsible of counsel to make the submission based on a scrap of paper the origin and correctness of which he cannot vouch for.
There is no basis upon which court can conclude that the conditions set out in clause (b) of section 147 of the Act have been complied with. Th notice dated October 11, 1982, issued under those provisions must, therefore, be quashed.
Rule made absolute accordingly.
The respondents shall pay to the petitioners the costs of this petition.