TMI Blog1977 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent are set out hereunder. The respondent is an assessee and is being assessed as an individual. The respondent was duly assessed for the assessment years 1954-55 to 1966-67. On 27th January, 1967, the respondent was served with a notice under section 148 of the Income-tax Act, 1961, issued by the appellant No. 2. The said notice was dated 25th January, 1967. In the said notice it was alleged that the appellant No. 2 had reason to believe that the respondent's income chargeable to tax for the assessment year 1962-63 appeared to have escaped assessment within the meaning of section 147 of the Income-tax Act, 1961. On the basis of the said allegation the appellant No. 2 intended to reassess the income of the respondent for the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned notice under section 148 was issued in exercise of power under section 147(1)(b) of the Act the said notice was issued beyond the prescribed period of limitation and as such no proceeding could be initiated or continued by virtue of the said impugned notice. T. K. Basu J. upheld the contention of the respondent-petitioner in the court of first instance and quashed the said notice and made the rule nisi absolute as mentioned hereinbefore. Before us, in the appeal, it was contended on behalf of the appellants by Mr. Suhas Sen that power under section 147(1)(a) could be exercised even on the basis of information received if such information be material which leads the Income-tax Officer to come to the belief that the income assessabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able for the said assessment year of the assessee escaped assessment on account of the omission or failure of the assessee to disclose finally and truly all material fact, necessary for his assessment for that year. The Income-tax Officer concerned merely recorded the information received and on the basis of such information directed the issue of the notice under section 148 after mechanically recording that income escaped assessment. For the reasons aforesaid it appears to us that the notice was issued under section 148 on the basis of the information received as mentioned hereinbefore under section 147(1)(b) of the Act. In that view of the matter, in our opinion, section 153(2)(b)(ii) of the Act applies to the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under clause (b) of that section, after-- (i) the expiry of four years from the end of the assessment year in which the income was first assessable, or (ii) the expiry of one year from the date of service of the notice under section 148, whichever is later." In the instant case a notice was served on or about 25th January, 1967, under section 148 of the Act. Thereafter, the Income-tax Officer served another notice bearing G.I. No. IV(1)/719-B/E dated February 1, 1971, under section 139 of the Act requiring the respondent to produce or cause to be produced at his office at No. 40, Strand Road, Calcutta 1, on 9th February, 1971, at 11.30 A.M. accounts and documents mentioned on the reverse of the notice, viz., books of accounts, bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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