Law:

Section:

Assumption of jurisdiction of Assessing Officer under section 147 depends upon existence of reasons followed by communi- cation thereof to assessee and if notice served under section 148 is challenged, Assessing Officer cannot proceed with assessment under section 147 unless reasons are communicated Section 148, read with section 147, of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 1999-2000 - Whether notice under section 148 once issued in exercise of jurisdiction is not justiciable - Held, yes - Whether notice under section 148 has to be issued only when conditions mentioned in section 147 are satisfied - Held, yes - Whether assumption of jurisdiction of Assessing Officer under section 147 depends upon existence of reasons followed by communication thereof to assessee and if notice served under section 148 is challenged, Assessing Officer cannot proceed with assessment under section 147 unless reasons are communicated - Held, yes Words and phrases - Expression 'reason to believe' as occurring in section 147 of the Income-tax Act, 1961 FACTS The Assessing Officer reopened the assessment of the assessee and served a notice under section 148 to it. The assessee in response to the said notice also filed the return. On writ challenging the impugned notice, the assessee contended, inter alia, that in spite of demand, reasons recorded by the Assessing Officer were not supplied to it. HELD It is the settled position of the law that in exercise of extraordinary power under article 226 the court will not interfere with any proceeding of a quasi-judicial nature, particularly when it is initiated under the expressed provision of the statute and which in its turn provides for a complete code of adjudicating machinery, provided of course such action is initiated in lawful and proper exercise of jurisdiction. [Para 7] The notice under section 148 once issued in exercise of jurisdiction is not justiciable. The notice under section 148 has to be issued only when the conditions mentioned in section 147 are satisfied meaning thereby that lawful assumption of the jurisdiction of the Assessing Officer will be inferred when he has…

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