TMI Blog1994 (6) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ndividual. The relevant assessment years are 1977-78 and 1978-79. The main source of income of the assessee during these two years was profit from the proprietary business in the name of Patel Brothers, share in the profit of the firm, Prince Stationers, and income from the property at 4th Marine Street, Bombay. For the assessment year 1977-78, the petitioner returned a net income of Rs. 14,330. For the assessment year 1978-79, the income returned was Rs. 22,113. All the requisite details including the profit and loss account and the balance-sheet were filed by the assessee along with the returns. For the assessment year 1977-78, the Income-tax Officer, the first respondent, completed the assessment of the assessee under section 143(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 147(a) of the Act were wholly absent and the notices were illegal and without jurisdiction. The contention of the assessee is that he had disclosed all the material particulars of his income along with the returns and again in compliance with the notice under section 143(2) of the Act for the assessment year 1978-79 and that there was no failure on his part to disclose fully and truly any material fact relevant for the purpose of assessment. It is also stated that the Income-tax Officer could not have any information in his possession to satisfy himself that any part of the income of the assessee had escaped assessment. The petitioner has categorically challenged the existence of the conditions precedent for the exercise of power under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn down the challenge to the notices but in the absence of anything of the type, the averments of the petitioner supported by the facts set out in the petition are to be accepted and the court is left with no other option than to infer that the Income-tax Officer had no material with him to justify the exercise of power under section 147(a) of the Act and to issue the impugned notices. In other words as observed by the Supreme Court in Madhya Pradesh Industries Ltd. v. ITO [1965] 57 ITR 637 neither the contention whether the disclosure made by the assessee. was full and true in respect of all material facts necessary for the assessment can be determined in the absence of an affidavit by the Income-tax Officer nor the plea that the impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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