9911796707
TMI Blog2003 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 had escaped assessment within the meaning of section 147 of the Act. In response to this notice, the petitioner filed his return of income on April 17, 2002. The petitioner also requested for the supply of reasons as recorded by the Assessing Officer under section 148(2) of the Act and those were supplied to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 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 assessment reopened. It is further alleged that it was because of the failure of the assessee to meet the demand of the Assessing Officer that the impugned notice has been issued. It is also urged that a perusal of the reasons as recorded by the Assessing Officer would clearly show that the satisfaction of the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts 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 the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 was no material with him in support of this satisfaction. In this view of the matter, the impugned notice cannot be sustained. Since the allegations made by the petitioner against the Assessing Officer were rather serious, we directed the Chief Commissioner of Income-tax to look into those allegations and hold a discreet inq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 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 reasons recorded by him. No satisfactory explanation could be furnished by him except that he stated that there were some other items of escaped income as well. He also pointed out that he had obtained the sanction from the superior authority as prescribed under section 151 of the Act. It is true that the sanction has been obtain ..... X X X X Extracts X X X X X X X X Extracts X X X X
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