TMI Blog1995 (3) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ves a reasonably specific estimate of the excessive coal-mining said to have been done by the respondent over and above the figure disclosed by it in its returns - notice are held valid as there was relevant material, on which a reasonable person could have formed the requisite belief - Civil Appeal No. 2394 of 1977 - - - Dated:- 29-3-1995 - B. P. JEEVAN REDDY. and G. T. NANAVATI. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated January 30, 1969, addressed by the Chief Mining Officer to him. The letter reads as follows : " Sub : Under-reporting of coal raising and shortage of surface coal stock by Selected Samla Colliery. Owner, Messrs. Selected Dalurband Coal Co. Pvt. Ltd., 137, Cotton Street, Calcutta. A joint inspection was made in the colliery mentioned above on 9th January, 1967, and 10th January, 1967, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter issued the aforesaid notices. Soon after receiving the notices, the assessee approached the High Court of Calcutta by way of writ petition, with the result mentioned above. It is well-settled by various decisions of this court that the notice under section 148 read with section 147 can be issued only where the Income-tax Officer has reason to believe that the income, profits or gains ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his subjective satisfaction. After hearing learned counsel for the parties at length, we are of the opinion that we cannot say that the letter aforesaid does not constitute relevant material or that on that basis, the Income-tax Officer could not have reasonably formed the requisite belief. The letter shows that a joint inspection was conducted in the colliery of the respondent on January 9, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uiry. At the stage of the issuance of the notice, the only question is whether there was relevant material, as stated above, on which a reasonable person could have formed the requisite belief. Since we are unable to say that the said letter could not have constituted the basis for forming such a belief, it cannot be said that the issuance of notice was invalid. Inasmuch as, as a result of our ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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