9911796707
TMI Blog1971 (5) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment was made. Thereafter, on the 25th May, 1967, a notice was received by the petitioner which is the subject-matter of challenge in this application. By the said notice the petitioner was asked by the Income-tax Officer, E-Ward, District I, Calcutta, to give the particulars of the persons to whom gold ornaments were sold. The petitioner was further asked to show cause why the income-tax assessment for the assessment year 1956-57 should not be reopened under section 147(a) of the Income-tax Act, 1961, and the petitioner was also required to comply with the said notice by the 31st May, 1967. The petitioner was requested to produce evidence in support of the above statement made in the original return. Subsequent to this a notice was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of the original assessment. Appearing for the assessee, Dr. Debi Prosad Pal, learned counsel, contended that there was no provision of law which entitled the Income-tax Officer to require the assessee to produce evidence to satisfy the Income-tax Officer whether the assessment should or should not be reopened. According to Dr. Pal, the Income-tax Officer according to certain information can reopen under certain conditions the assessment, but the Income-tax Officer cannot, according to Dr. Pal, carry on investigation and request the assessee to assist him for the purpose of reopening the assessment. The assessment once made cannot be reopened except in the circumstances mentioned in section 147 and upon the conditions contained in sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he acts under the provisions of section 147 of the Income-tax Act, 1961, and subsequent sections thereto, he has to act reasonably. For that purpose he can make investigation. It is not obligatory in all cases for him, in my opinion, to make investigation. The statute itself does not impose any obligation upon the Income-tax Officer to make any particular enquiry or investigation before reopening an assessment. But, the statute imposes upon the officer the obligation to act reasonably. In certain cases in respect of certain information certain kind of investigation might become necessary for the purpose of acting reasonably. That investigation and enquiry, in my opinion, the Income-tax Officer can conduct from other sources or as well from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in certain cases for the purpose of acting reasonably. Reliance was also placed by Dr. Pal on the decision in the case of Gaya Ram Gabbu Lal v. Commissioner of Income-tax. Dr. Pal drew my attention to the observations of the Division Bench of the Allahabad High Court appearing at page 121 of the report. The court observed : " The Income-tax Officer has no right to make a preliminary enquiry before issuing notice under section 34 and the assessee is not bound at that stage either to produce his books or to give any information or explanation. But, if in the course of the performance of his usual duties, while assessing the income of other assessees or for other years of the assessee himself, definite facts come to the knowledge of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t ask the assessee to produce evidence. If the Allahabad High Court meant by the aforesaid observation that the assessee was not obliged to produce evidence before the assessment was reopened, I am respectfully in agreement. But, if the Allahabad High Court meant that the assessee could not be asked at all and the Income-tax Officer had no right to ask the assessee, for assistance, I am unable to agree, with respect. The correct position seems to me that the Income-tax Officers in particular cases have the right and indeed the duty to investigate. Such investigations might be done from all sources including the assessee. He cannot, however, in my opinion, compel the assessee to produce any evidence before a notice under section 148 has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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