TMI Blog2018 (10) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... use of action for filing of the present writ petitions and this Court has no hesitation in holding that the writ petitions are not only premature, even on merits the writ petitioner has failed to establish any acceptable reason to grant the relief, as such, sought for. This being the principles to be followed, the writ petitioner has miserably failed to establish any legally acceptable ground for the purpose of interfering with the actions initiated by the respondents by invoking the provisions of the Income Tax Act, 1961. - W.P. Nos.3405 and 43944 of 2016 And W.M.P.Nos.2780 and 37778 of 2016 - - - Dated:- 10-10-2018 - Mr. S. M. Subramaniam J. For the Petitioner in WP 4305/16 WP 43944/16 : Mr.G.Masilamani, Senior Counsel for M/s.M.Sneha and L.S.M.Hasan Fizal. For the Respondents in both WPs : Mr.G.Rajagopal, Additional Solicitor General of India assisted by M/s.Hema Murali Krishnan and D.Naveen Durai Babu, Standing Counsel for Income Tax. COMMON ORDER The notice issued by the respondents dated 27.3.2015 under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') and the consequential order dated 13.1.2016 are under challen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner states that at the time of issuing the notice under Section 148 of the Act, the charge sheet filed by the Central Bureau of Investigation in respect of the allegations was pending. However, the writ petitioner filed a discharge petition before the Central Bureau of Investigation Court and on 2.2.2017, the writ petitioner was discharged from the charges framed by the CBI Court under the Prevention of Corruption Act. Under these facts and circumstances, the learned Senior Counsel, appearing on behalf of the writ petitioner, made the following submissions. PLEADINGS OF THE PETITIONER AS WELL AS THE ARGUMENTS: 7. Section 147 of the Act, states that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned. Provided that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials for the purpose of reopening the closed assessment. 10. In all such cases, the subjective satisfaction of the Assessing Officer is contemplated under Section 147 of the Act, when the language employed in Section 147, if the Assessing Officer has reason to believe . Therefore, there is no ambiguity in respect of the recording of reasons by the Assessing Officer for invoking Sections 147 and 148. Only if the Assessing Officer has recorded the reasons as contemplated under Section 147, he is empowered to issue notice to the Assessee under Section 148 by recording the reasons and communicating the same to the Assessee, enabling the Assessee to furnish his reply and defend his case in respect of reopening of the alleged escaped assessment. Thus, the very ingredients of Section 147 has not been satisfied in respect of the actions of the respondents in the present writ petitions. In view of the fact that the notice does not satisfy the requirements of the mandatory provisions of reason to believe and recording the reasons and communicate the same to the Assessee, the impugned notice issued under Section 148 is liable to be scrapped as in violation of the provisions of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rupees or more for that year. Thus, the case of the writ petitioner falls under the said category and accordingly, the time limit prescribed for reopening of the closed assessment is six years. 15. Section 151 speaks about the sanction for issue of notice. (1) In a case where an assessment under sub-section (3) of Section 143 or Section 147 has been made for the relevant assessment year, no notice shall be issued under Section 148 by an Assessing Officer, who is below the rank of Assistant Commissioner or Deputy Commissioner, unless the Joint Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice: Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice. 16. Thus, it is made clear that in the event of reopening of the closed assessment, the Competent Authorities are bound to follow all the procedures contemplated under Sections 147 to 153 of the Act. 17. Referring th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nomic interest in respect of company belongs to his blood brother himself. The concept of common economic interest is unknown to the Income Tax Law. Unlike the Companies Act, 1956, such a principle of common economic interest cannot be invoked for the purpose of making an Assessee liable, more specifically, in the absence of providing reasons for reopening of the closed assessment. 21. The writ petitioner is no way connected with the company of his brother, namely, M/s.Sun Direct TV Pvt. Ltd. The respondents have not conducted any independent investigations in respect of the connectivity. The writ petitioner is a third party to the Company of his brother. The concept of common economic interest contemplated by the respondents are certainly inapplicable in the case of the writ petitioner. Such a concept can never be adopted against an Assessee for imposing tax under the Income Tax Act, 1961. 22. This apart, on the basis of the very same charge sheet filed by the CBI, notice under Section 148 of the Act was given to four persons, the writ petitioner, Sun Direct TV Pvt. Ltd., the writ petitioner's blood brother Mr.Kalanithimaran and his wife Smt.Priya Maran. Thus, the multip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State. No doubt, it is controlled and regulated by the U.P. Cooperative Society Act, 1965, but its character remains private and individual. Rules have been framed for maximizing economic outcome and to regulate the recruitment and conditions of service of its employees. The employees are paid from the coffers of the society and are its employees for all purposes and do not hold any civil post under the State. As noticed in the opening part of this judgment, Rules have been framed under the 1965 Act. Rules of 1972 only apply to Government Servants and not to employees of Cooperative Societies, therefore neither ratio in Raj Vikram Khare (supra) nor the rules apply in the present case. 25. Relying on the above judgment, the learned Senior Counsel for the writ petitioner is of an opinion that the concept of common economic interest can be invoked only in certain areas like co-operative movement, people with similar interest and goal get together to form a Society and in certain company matters. However, the very principle of common economic interest cannot be applied in the absence of any clinching materials to show that the Assessees had acted in violation of the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moving the bar against taking action after the said four year period remains unfulfilled. In our recent decision in Wel Intertrade (P.) Ltd. s we had agreed with the view taken by the Punjab and Haryana High Court in the case of Duli Chand Singhania that, in the absence of an allegation in the reasons recorded that the escapement of income had occurred by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing Officer under section 147 beyond the four year period would be wholly without jurisdiction. Reiterating our viewpoint, we hold that the notice dated 29-3-2004 under section 148 based on the recorded reasons as supplied to the petitioner as well as the consequent order dated 2-3-2005 are without jurisdiction as no action under section 147 could be taken beyond the four year period in the circumstances narrated above. 24. .. .. .. .. .. .. This means that a notice under section 148, in the present case, could not, in any event, have been issued after six years from the end of the assessment year 1998-99, i.e., after 31-3-2005. In whichever way we look at it, a notice u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... critical to the formation of the belief must be referred to. Otherwise the link goes missing. 24. The reopening of assessment under Section 147 is a potent power not to be lightly exercised. It certainly cannot be invoked casually or mechanically. The heart of the provision is the formation of belief by the AO that income has escaped assessment. The reasons so recorded have to be based on some tangible material and that should be evident from reading the reasons. It cannot be supplied subsequently either during the proceedings when objections to the reopening are considered or even during the assessment proceedings that follow. This is the bare minimum mandatory requirement of the first part of Section 147 (1) of the Act. 26. The first part of Section 147 (1) of the Act requires the AO to have reasons to believe that any income chargeable to tax has escaped assessment. It is thus formation of reason to believe that is subject matter of examination. The AO being a quasi judicial authority is expected to arrive at a subjective satisfaction independently on an objective criteria. While the report of the Investigation Wing might constitute the material on the basis of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his jurisdiction to determine the petitioner's liability to pay tax in relation to the particular assessment year simply because in a criminal case, charge had not been framed. 33. The settled position of law is that there is no mandatory requirement as per the Income Tax Act, 1961, furnishing the reasons to the Assessee at the time of the issuance of the notice. As per the decision of the Apex Court, in the case of GKN Driveshaft [259 ITR 19] , it was held that the due procedure to be followed during reopening proceedings was that once the notice is served the Assessee would have to necessarily file its return and then on request, the Assessing Officer should furnish the reasons for reopening of the assessment. The time limit provided under the Act is therefore, only for proper issue and service of notice which had been duly followed in the present cases. 34. The writ petitioner questioned the sufficiency of the reasons and the modus operandi of the investigation if any conducted which is not for the writ petitioner to question. The fact that scrutiny proceedings were conducted in a different entity does not absolve the writ petitioner of the proceedings being initia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inct from each other. The Income Tax Act provides for limitation of time, for reopening of the assessment upto six years from the relevant assessment year whereas the proceedings under the CBI would take more time for Courts to decide and if the Department has to wait till the outcome of the proceedings of the CBI then the proceedings under the Income Tax Act would get time barred leading to a potential leakage of revenue for the Nation. Thus, both are different and distinct proceedings and the level of evidence vary. A notice under Section 148 can be issued once the reason for belief is formed on the information in the possession of the Assessing Officer. Proceedings are initiated to verify the same and the writ petitioner would be given a fair opportunity for defending his case by submitting proof and arguments. In fact the Hon'ble Apex Court in a case reported in 103 ITR 437 has held that Court cannot go into adequacy of material if reason for information of believes has a rational connection with the formation of belief. 38. In the case of Raymond Woolen Mills reported in 236 ITR 34 , the Hon'ble Supreme Court had reiterated the position that Courts can only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e writ petitioner to challenge the very notice by way of a writ petition under Article 226 of the Constitution of India. There is an application of mind on the part of the Competent Authorities while recording the reasons as the provision warrants such an exercise. However, the same need not be communicated at the notice stage and the reasons were already communicated in respect of the writ petitioner at his request. Thus, the procedures contemplated under the Act, are followed scrupulously by the Competent Authorities and there is no infirmity or irregularity. 43. The learned Additional Solicitor General of India once again gone through the ingredients of Section 147. The language employed in Section 147 of the Act is that If the Assessing Officer 'has reason to believe' that any income may, subject to the provisions of Sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice . 44. The learned Additional Solicitor General of India is of an opinion that it is the subjective satisfaction of the Assessing Officer in respect of the requirement that he has a reason to bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion allowance or any other allowance under this Act has been computed. 47. It is stated by the respondent that various circumstances are provided under the provisions of Section 147 for the reopening of the assessment. Thus, the provision does not restrict a particular circumstance or event, number of circumstances and the reasons are provided for reopening of the assessment in order to protect the revenue and to ensure that the Assessees are brought under the Taxnet in respect of the entire income. Such circumstances are enumerated in Section 147 to ensure that the Act is implemented in its letter and spirit and the object is achieved. 48. The learned Additional Solicitor General of India contended that under Section 252 of the Act, after an order is passed, the writ petitioner shall approach the Appellate Tribunal by way of an appeal. Section 260-A provides an appeal to the High Court and Section 261 provides an appeal to the Supreme Court. Thus, the present writ petitions cannot be entertained in view of the fact that it is only an initiation and the Assessing Officer has not yet arrived a conclusion in respect of the escaped assessment. The power of the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or recording of reasons it did not expressly provide communicating the same to the assessee. Still, this Court held that such a communication is mandatory: (Ajantha Industries case [Ajantha Industries v. CBDT, (1976) 1 SCC 1001 : 1976 SCC (Tax) 127] , SCC p. 1005, paras 10-11) 10. The reason for recording of reasons in the order and making these reasons known to the assessee is to enable an opportunity to the assessee to approach the High Court under its writ jurisdiction under Article 226 of the Constitution or even this Court under Article 136 of the Constitution in an appropriate case for challenging the order, inter alia, either on the ground that it is mala fide or arbitrary or that it is based on irrelevant and extraneous considerations. Whether such a writ or special leave application ultimately fails is not relevant for a decision of the question. 11. We are clearly of opinion that the requirement of recording reasons under Section 127(1) is a mandatory direction under the law . 14. In our view, such a conclusion in Ajantha Industries case [Ajantha Industries v. CBDT, (1976) 1 SCC 1001 : 1976 SCC (Tax) 127] must be understood in the light of the observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s statutory requirement to communicate the reasons which led to the issuance of notice under Section 6 of the Act. Secondly, the reasons, though not initially supplied along with the notice dated 4-3-1977, were subsequently supplied thereby enabling the appellant to effectively meet the case of the respondents. This apart, the appellant could have effectively convinced the respondents by producing the appropriate material that further steps in furtherance to the notice under Section 6 need not be taken. At the outset, the Apex Court says that the reasons can be provided even after the issuance of the notice in a format. Thus, there is no infirmity in respect of providing reasons even in such circumstances, the Assessees can submit their returns effectively in respect of reassessment and defend their case by producing materials and by convincing the Assessing Officer in respect of the stand taken by them. Contrarily, the writ petitioner cannot challenge the very issuance of notice which was done with reference to Sections 147 and 148 of the Act. 52. In the case of Bal Ram Jakhar vs. Commissioner of Income Tax [(2002) 120 Taxman 464 (Punjab Haryana)] , the Hon'ble Punjab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as premature on the ground that the question as to whether the petitioner could be held liable for an offence under the Prevention of Corruption Act or any other contemporaneous statute does not, in our opinion, have any bearing on his liability to be taxed under the 1961 Act and the competent authority constituted under that Act, cannot be denuded of its jurisdiction to determine the petitioner's liability to pay tax in relation to the particular assessment year simply because in the criminal case charge has not been framed. 53. In the case of K.M.Bansal vs. Commissioner of Income Tax and Another [1991 SCC Online AII 1283] , the Hon'ble Allahabad High Court came to the conclusion that the function of the Assessing Officer at the stage of issuance of notice under Section 148(1) is administrative in nature. It becomes quasi-judicial once the notice is served upon the assessee. Since reasons are recorded at a stage anterior to issuance and serving of the notice, it is held that reasons need not be communicated. But once the proceedings become quasi-judicial and more important, and once it is admitted that, in such proceedings, the assessee has a right to question the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the noticee is to file return and if he so desires, to seek reasons for issuing notices. The assessing officer is bound to furnish reasons within a reasonable time. On receipt of reasons, the noticee is entitled to file objections to issuance of notice and the assessing officer is bound to dispose of the same by passing a speaking order . 56. The Hon'ble Supreme Court reiterated the principles in GKN Driveshafts (India) Ltd's case that reasons need not be communicated along with the notice issued under Section 148 (1) of the Act. If there is a request made by the Assessee then the reasons shall be communicated, enabling the Assessee to respond to the reasons recorded by the authorities concerned. 57. In the case of Dr.K.Nedunchezhian vs. The Deputy Commissioner of Income Tax [(2005) 4 CTC 161 (SC)] , the Hon'ble Supreme Court, held that particularly in tax matters, there should be no short circuiting of the alternative statutory remedies as has been repeatedly emphasised by the Supreme Court. When there is an alternative remedy ordinarily writ jurisdiction of this Court under Article 226 of the Constitution should not be invoked. Where there is a hierarchy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t which was closed long back. 61. The very object of the provision under the Income Tax Act is to ensure that the suppressed materials or facts and the new availability of materials to the Department are also to be dealt with for the purpose of taxation. In order to cover the loopholes in the Tax Regime, and to control and evasion of tax by the individuals, the provision of reopening of assessments are made and such provisions are to be certainly invoked by following the procedures contemplated under the Act. 62. Let us now look into the manner in which the initiations are done by the respondents in respect of the present writ petitions. Undoubtedly, the writ petitioner filed the returns for the respective assessment years, within the time limit prescribed under Section 139 (1) of the Income Tax Act, 1961. It is an admitted fact that the impugned notices are issued within the period of six years as contemplated under Section 149(1)(b) of the Act. Thus, the notice was issued informing the Assessee to take note of the fact that the Department has collected some materials in respect of the assessment of the particular assessment year and therefore, they have got every reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicial review in such matters regarding the initiation of the proceedings are to be exercised cautiously. 67. Let us now meet the grounds raised on behalf of the writ petitioner that Section 147 requires that the reasons must be recorded in the notice and in the absence of any reasons communicated along with the notice under Section 148 of the Act, the entire proceedings become null and void. If such an interpretation is accepted by this Court, then one can presume that the authorities are bound to pass a final order at the notice stage itself. That is not the intention of the Statute. The intention of the Statute is that the authorities on receipt of new material facts or regarding any suppression of materials by the Assessee, is bound to initiate proceedings by invoking Sections 147 and 148 of the Act. 68. The amended phraseology of reason to believe must be interpreted that the Assessing Officer on receipt of any such new material or materials in relation to suppression of fact by the Assessee has made out a prima facie opinion that it is a case for reopening of the assessment, then he can issue notice under Section 148 and thereafter, the procedure of furnishing the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessee must co-operate for the scrutiny and for completion of the reassessment process. 75. The writ petitioner, who was holding the high position as Union Minister, is duty bound to respond to the notice to prove his innocence or otherwise. Contrarily, the writ petitions are filed at the notice stage itself, and the same will hamper all further proceedings of the Department and such an idea would if any developed can never be encouraged by the Courts. On receipt of the notice impugned in the present writ petitions, rightly the writ petitioner had approached the respondents for furnishing the reasons. The respondents have also furnished the reasons and the letters. Thus, it is left open to the writ petitioner to defend his case in the manner known to law and allow the officials to scrutinise the assessments based on the new materials available and thereafter, take a decision and pass assessment or reassessment orders by following the procedures contemplated under the Act. 76. In view of the fact that the requirement under Section 147 of the Act i.e., the reason to believe, does not mean that the authorities at the time of issuance of notice under Section 148 should furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances are to be adjudicated by producing documents and by adducing evidences by the parties concerned. Such an exercise can never be done by the High Courts under Article 226 of the Constitution of India. Thus, entertaining a writ petition at the notice stage, must be sparingly and cautiously done. The High Courts must be restrained from entertaining such writ petitions when the very notice itself is under challenge. 79. Undoubtedly, the legal principles settled in this regard that the writ petition can be entertained if the notice has been issued by an incompetent authority having no jurisdiction or if the allegation of mala fides are raised or if the same is in violation of any Statutory Rules in force. Even in the case of raising an allegation of mala fides, the authorities against whom such an allegation is raised to be impleaded as party respondent in his personal capacity. In the event of not establishing any such legal ground, no writ proceedings can be entertained against a notice in a routine manner and the judicial review in this regard is certainly limited. 80. In the present cases, the point of limitation raised deserves no consideration in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. There is no question of common economic interest in respect of the tax payments and the said common economic interest has not been enumerated in the impugned notice. 85. In response to the contention, the learned counsel, appearing on behalf of the Income Tax Department, urged this Court by stating that the materials, more specifically, the charge sheet in details, filed by the CBI categorically enumerates the nexus between the writ petitioner and his blood brother in respect of certain business interest. In this regard, it is relevant to extract one of the paragraphs of the charge sheet, which read as under:- 2. During monitoring of the investigation in CBI case No.RC-DAI-2009-A-0045 (2G Spectrum Case), Hon'ble Supreme Court of India vide order dated 16.12.2010 directed the CBI to investigate the irregularities committed in the grant of licenses from 2001 to 2007 with particular emphasis on the loss caused to the public exchequer and corresponding gain to the licenses / service providers. In compliance to the above order, the CBI registered a preliminary Enquiry No.PE DAI-2011-A-001 was registered on 4.1.2011 at CBI, ACB, New Delhi. After conclusion of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal and technological activities. Greedy men are attempting to exploit the situations in many places. Corruption in our country are mounting and it becomes a routine affair in certain public businesses. When corruption is spreading like a Cancer in our Great Nation, such provisions are to be interpreted constructively by not allowing the offenders to escape from the clutches of law. The scientific way of transactions by using the modern technologies are to be keenly addressed by the officials also. The corrupt activities are being injected deep into the system and it is very difficult for the authorities to cull out the modus operandi of such corrupt activities. Investigations are to be modernised and the method of investigations are to be improved, so as to match the level of corruption and the modus operandi of corruptions in certain areas. 87. The huge transactions like that of the present cases on hand, the authorities must be in a position to investigate the issues thoroughly and by using an intelligent way of investigation. Under these circumstances, the Courts cannot interfere in a routine manner in respect of the notice issued under Section 148 of the Act. Whenever such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 90. The power of reopening of the assessment is certainly wide in nature. If it is restricted, then the very purpose and object of the Income Tax Act will be defeated. The wide power provided to the authorities competent are to reopen the assessment and to ensure that all external materials and the informations received from various sources are also dealt with in accordance with the provisions of Law. Thus, it does not mean that the Income Tax Authorities may reopen at any point of time. In order to protect the Assessees a definite time limit has been provided under the Act itself. Thus in the event of receiving any informations or materials from any other sources can be a ground for reopening of the assessment and the period of limitation is four years and six years respectively and in respect of the present writ petitions, it is six years. 91. The procedure of reopening of the assessment is contemplated under Sections 148 to 153 of the Act. Once again looking into the spirit of Section 147, it is unambiguously enumerated that assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides power to the Assessee where a return of income has been furnished by the Assessee but no assessment has been made and it is noticed by the Assessing Officer that the Assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return. 95. The circumstances are narrated wherein certain materials and informations are provided by the Assessee at the time of filing of the returns and if the same has not been assessed by the Assessing Officer during the relevant assessment year and if it is subsequently noticed, then also the Assessing Officer is empowered to reopen the assessment in respect of the escaped assessments. 96. On a perusal of various circumstances incorporated under Section 147 of the Act, for reopening of the escaped assessment, this Court is of an opinion that it is certainly flexible and wider power has been provided, enabling the Assessing Officer to reopen the assessment in the interest of revenue and to ensure that the Assessees pay the correct tax with reference to the provisions of the Act. 97. This Court is of the firm opinion that where certain doubts in respect of the reasons or otherwise has been rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns known to him. Without doing so, the writ petitioner filed the present writ petitions, challenging the notice. 101. Let us now look into Section 148 of the Act. Section 148 speaks about the issuance of notice where income has escaped assessment . Section 148(2) stipulates that the Assessing Officer shall, before issuing any notice under this Section, record his reasons for doing so . Whether the said provision can be interpreted as if recorded reasons by the Assessing Officer should be communicated along with the notice. The very purport of the Act is to ensure that the Assessing Officers are acting with reasons and judiciously. The Statute provides that the Assessing Officer should record the reasons only with an object to ensure that the Assessing Officers/Competent Authorities cannot act with callousness and without any basis. 102. Every actions of the Authorities Competent must be on reasonings and the same must be recorded in files. The reasons to be recorded by the Assessing Officer for taking decision to reopen the escaped assessment does not mean that such reasons are to be communicated along with the notice itself. The notice directs the Assessee to submit his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering the fact that there are some materials on record and the informations with the Department of Income Tax, the reopening of the assessment in the writ petitions with reference to Sections 147 to 153 of the Act, is in accordance with law and there is no infirmity, as such. Thus, the writ petitioner is bound to respond to the Assessing Officer for the purpose of arriving a conclusion and for taking a decision. In the event of passing an order of assessment or reassessment, then the writ petitioner is entitled to prefer an appeal contemplated under the provisions of the Act. Contrarily, based on the preliminary informations gathered by the Assessing Officer, the notice issued for the purpose of reopening of the assessment would not provide a cause of action for filing of the present writ petitions and this Court has no hesitation in holding that the writ petitions are not only premature, even on merits the writ petitioner has failed to establish any acceptable reason to grant the relief, as such, sought for. 107. This being the principles to be followed, the writ petitioner has miserably failed to establish any legally acceptable ground for the purpose of interfering with t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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