TMI Blog1970 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... in rates in such instalments as he might allow and to grant a certificate to every person who had made such a declaration and paid the tax setting forth the particulars of the amount declared, the amount of tax paid and the date of payment. Under section 24 of the Finance (No. 2) Act, 1965, provision was made for disclosure of any income which has not been included in the disclosure made under section 68 of the earlier Act and similar provisions for payment of tax and grant of certificate by the Commissioner. The petitioner is a partnership firm which was assessed to income-tax for the assessment year 1960-61, by the Income-tax Officer, "A " Ward, District II(1), Calcutta, being the respondent No. 1 herein, under section 23(5)(a) of the 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s return for the assessment year 1960-61 as he had reason to believe that its income for the above year had escaped assessment. It was mentioned in the said notice that it was being issued after obtaining the necessary sanction of the Commissioner. In response to the said notice the petitioner filed the return for 1960-61, together with a letter dated the 28th March, 1969, wherein the petitioner took the plea that the Income-tax Officer had no reasons to believe that the petitioner's income for 1960-61 had escaped assessment as he could not take action under section 148 on the basis of any disclosures made by one of the partners of the petitioner. It is also recorded in the said letter that the return was being filed without prejudice to it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stand by the respondent No.1 that the impugned notice was issued on the basis of the disclosure petition made by the said partner of the petitioner and it is contended that any particulars contained in the said disclosure proceedings are confidential and could not be used by the department in taking any proceedings against the petitioner. That the petitioner was under the impression that the reassessment proceedings were initiated on the basis of the disclosures made by one of its partners would also appear from its aforesaid letter dated the 28th March, 1969. Dr. Pal for the petitioner pointed out that in spite of repeated injunctions from this court that in writ proceedings the affidavit showing cause should be affirmed by a person who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition. Learned counsel drew my attention particularly to paragraph 10 of the petition where certain discussions purported to have taken place between the petitioners' authorised representative and respondent No. 1 have been affirmed to be true to knowledge. Both the petition and the affidavit-in-opposition could certainly have been affirmed by more competent persons. Learned counsel further points out that after filing the return in response to the notice under section 148 the petitioner did not demand of respondent No. 1 to be informed of the reasons for the issue of the notice, and if such demand had been made the reasons would certainly have been communicated to it. Instead the petitioner came straight to this court and obtained this rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come has escaped assessment. In the case under consideration the fact that one of the partners had disclosed that he had made advances to the firm in the fictitious names of other persons would certainly be a very strong reason for the Income-tax Officer to believe that other partners might also have introduced money into the firm in fictitious names. But, apparently, the authorities of the department are averse to take even the small trouble of going through the records and pointing out the obvious reasons for taking the action that they have purported to take. In this case I must hold that there was some reason for the respondent -Income-tax Officer to have issued the notice under section 148 and this rule must be discharged. There will b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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