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TMI Blog1973 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... eaning of section 147 and he proposes to reassess the income. It is brought to my notice that subsequently the order of assessment was also passed and the assessee has preferred an appeal against the order of assessment to the Appellate Assistant Commissioner. Therefore, Sri Dasaratharama Reddy states that in the events that have happened the appropriate writ would be a writ in the nature of a writ of certiorari quashing the order of assessment instead of a writ of prohibition. The main contention that has been urged by Sri Dasaratharama Reddy is that the requirements of section 151(2) have not been satisfied in this case. Under section 151(2) no notice shall be issued under section 148 after the expiry of four years from the end of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by not accounting for certain purchases. I am, therefore, of the opinion that on account of the failure to disclose by the assessee-firm fully and truly all the material facts necessary for the purpose of computation of its correct total income, income chargeable to tax has escaped assessment. I shall propose to reopen the assessment under section 147(a) of the Income-tax Act. I request that the Commissioner of Income-tax be pleased to accord necessary sanction for reopening the assessment for 1965-66." Column 8 is as follows: " Whether the Commissioner is satisfied that it is a fit case for issue of notice under section 148 ?" Against this column it is stated " Yes ". Having gone through the reasons given by the Income-tax Officer for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is not the samething as saying that there are reasons to issue notice under section 148. In this case, however, the Income-tax Officer refers to the order of the sales tax authority determining a turnover at a higher figure and levying penalty for the suppression of turnover. On the basis that the turnover has been suppressed he was prima facie entitled to assume on the strength of the order of the sales tax authorities, the Income-tax Officer had reasonable grounds to say that there was omission or failure on the part of the assessee to disclose fully and truly the material facts necessary for the purpose of computation of the correct income. This is not a case where the Income-tax Officer merely thought that it is a case only for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Supreme Court observed that if only the Commissioner had read the report carefully he would never have come to the conclusion on the material before him that this is a fit case to issue notice under section 148. It cannot be said in the instant case that if the Commissioner had read the present report he would not have come to the conclusion that this is a fit case under section 148. It is to be noticed that while the Act requires that the Commissioner should be satisfied, it does not require he should record his reasons for his satisfaction it is true that if this court comes to the conclusion that the Commissioner could not have been satisfied at all having regard to the facts and circumstances of the case, the court would not hesit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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