TMI Blog1977 (4) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... lf of the petitioner submits that, although several grounds have been taken in the petition, this matter can be disposed of on one short point. In order to appreciate the point it would be necessary to set out the reasons recorded by the Income-tax Officers before the issue of the eight impugned notices. Before I set out the recorded reasons I may mention that although the reasons for these eight years have been recorded by the two Income-tax Officers, viz., Mr. D.L. Brahamchari and Mr. K. Dasgupta, and although there are eight different reasons recorded for the respective assessment years, curiously enough the recorded reasons are word for word the same. This could obviously be the basis of an argument of non-application of mind by the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jab Distilling Industries Ltd. v. Commissioner of Income-tax [1959] 35 ITR 519, this surplus is assessable as a trading receipt because what the assessee was realising from the customers was the sale price (sales tax being a part of it and if a part of it was not paid to the sales tax authorities that amount must necessarily be regarded as trading receipt). The exact amount accumulated in each year is not known as the books of accounts of the assessee have been seized by the Company Law Board and are now the subject-matter of an injunction from the Calcutta High Court, but the surplus each year is not likely to be less than Rs. 50,000. Dr. Pal relied on the well-settled proposition that before an Income-tax Officer can issue a notice unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicate items which are believed to have escaped assessment) : As per separate sheet. " According to Mr. Pal, this amounted to fulfilment of the condition precedent as required by law before the issue of a notice under section 148 of the Act. I am unable to accept the contentions of Mr. Balai Lal Pal on this point. Entry No. 7 in the covering sheet of the recorded reasons in my view does not amount to a formation of belief that any income has escaped assessment. Even assuming that by an over-generous interpretation in favour of the revenue, this entry may be construed to amount to the formation of a belief by the Income-tax Officer that income has escaped assessment, there is nothing in the recorded reasons to show that there was the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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