TMI Blog2003 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... Life Insurance Corporation of India at Fatehabad. He is a regular income-tax assessee. In the return filed for the assessment year 1995-96, the assessee had shown income by way of incentive bonus received from the Life Insurance Corporation of India at Rs. 2,19,366 against which he claimed a deduction of Rs, 87,746 at 40 per cent. This return was processed on September 22, 1995, by the Assessing Officer under section 143(1)(a) of the Income-tax Act, 1961 (for short "the Act"), Thereafter, a notice dated March 14, 2002, was received by the petitioner under section 148 of the Act for the assessment year 1995-96 wherein the Assessing Officer required him to file his return of income for the said year as, according to him, income for that year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax in this case amounts to more than Rs. 1 lakh including Rs. 87,746 referred to above on all the issues. It is, therefore, a fit case for issue of notice under section 148 of the Income-tax Act, 1961, in view of Explanation below section 149(1)(b) of the income-tax Act, 1961. In view of the above facts, necessary permission to issue notice under section 148 of the Income-tax Act, 1961, may kindly be accorded." The grievance of the petitioner is that the impugned notice under section 148 of the Act has been issued with an ulterior motive and that the Assessing Officer had been demanding a sum of Rs. 40,000 from the assessee failing which he was threatening that proceedings under section 148 of the Act would be initiated and the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relevant assessment year, (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b); (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year. Explanation.-In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section. (2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151. (3) If t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in his possession regarding escaped income. In the present case, there is no such nexus. The court cannot go beyond the reasons recorded nor can it take into account any supplementary reasons which did not enter the mind of the Assessing Officer at the time of issuing the notice under section 14B of the Act. As the Assessing Officer did not refer to any other item of escaped income in the reasons recorded by him and since the validity of the notice issued under section 148 of the Act has to be examined only on the basis of the reasons as recorded, we are satisfied that the Assessing Officer stated in the notice that the escaped income was likely to be more than Rs. 1 lakh only with a view to overcome the hurdle of limitation when there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial could be adduced by the petitioner in support of his allegations. The same material has been placed before us as well. Having given our thoughtful consideration to this aspect of the matter, we are of the view that no positive finding can be recorded against the Assessing Officer though looking at the reasons recorded by him and the circumstances in which the notice was issued, one raises one's eyebrows. However, we give the benefit of doubt to the Assessing Officer and leave the matter at that. We also sent for the Assessing Officer and asked him to explain as to how he could record his satisfaction that the escaped income was likely to be more than Rs. 1 lakh when he referred only to a sum of Rs. 87,746 as the escaped income in the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to raise the objections before him because the Assessing Officer himself has not been able to justify the issuance of the notice before us. Even learned senior counsel appearing for the Department conceded during the course of arguments that if the court thought that the notice was illegal, the same could be quashed but it was not a case where action should be taken against the Assessing Officer. We do not, therefore, want to prolong the agony of the petitioner anymore. In the result, the writ petition is allowed and the impugned notice, dated March 14, 2002, is quashed with costs which are assessed at Rs. 10,000. The costs shall be paid personally in equal shares by the Assessing Officer and the officer who granted sanction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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