TMI Blog2004 (6) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... the prerequisite conditions stipulated by section 147 of the Act are not fulfilled, there is no case made out for upholding the proposed reassessment. The notices for all the four years are, therefore, bad in law and are quashed and set aside. - - - - - Dated:- 23-6-2004 - Judge(s) : M. S. SHAH., D. A. MEHTA. JUDGMENT The judgment of the court was delivered by D.A. MEHTA J. - This petition under article 226 of the Constitution of India challenges notices dated January 6,1996 (annexure "A" Colly), issued by the respondent under section 148 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the assessment years 1986-87, 1987-88, 1988-89 and 1989-90. The petitioner, a partnership firm, is carrying on business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l account of the partners, such transfer did not mean that the reserve ceased to be utilised for the purposes of the business. Mr. M.R. Bhatt, learned senior standing counsel appearing on behalf of the respondent, placed reliance upon the reasons recorded and the affidavit-in-reply to contend that the Assessing Officer was satisfied that by reason of failure on the part of the petitioner to disclose income truly and fully income chargeable to tax had escaped assessment. That since the requirement for reopening had been fulfilled, the petition was not maintainable. In light of the view that we are taking, it is not necessary for us to deal with various contentions raised on behalf of the petitioner as can be seen hereinafter. Section 80H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amely, the assessment years 1986-87 to 1988-89, it is apparent that the proviso only requires that an amount equal to the amount of deduction claimed under subsection (1) of section 80HHC of the Act is debited to the profit and loss account and credited to a reserve account which is to be utilised for the purposes of the business of the assessee, and such debit and credit have to be made in the previous year in respect of which such deduction is claimed and is to be allowed. The petitioner has admittedly for the three years under consideration made such entries debiting the profit and loss account and crediting the reserve account. There is no dispute on this count. The case of the Revenue is that during the accounting period relevant to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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