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JUDGMENT Akil Kureshi, J. - The petitioner has challenged a notice dated March 8, 2004, issued by the Assessing Officer under section 148 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The brief facts are as under : 2.1 The petitioners is a company registered under the Companies Act. For the assessment year 1997-98, the petitioner filed its return of income on November 27, 1997, declaring total income of Rs.22.91 lakh (rounded off). In the return so filed, the petitioner appended a note indicating that it had debited Rs.6.22 lakh (rounded off) on account of Keyman Insurance premium. The petitioner also indicated that the Life Insurance Corporation of India would allocate guaranteed addition and bonus of Rs.8.85 lakh on such insurance. However, such amount of bonus and other additions being contingent receipts, were not offered for tax for the year under consideration. 2.2 The return of the petitioner's income was accepted without scrutiny. On June 11, 1999, the Assessing Officer issued first notice of reopening of assessment under section 148 of the Act to the petitioner, indicating that he has reason to believe that the petitioner's income chargeable to tax for the assessment year 1997-98 had escaped the assessment. He, therefore, proposed to reassess such income requiring the petitioner to deliver 'the return in the prescribed format before June 30, 1999. 2.3 Being a case prior to the decision of the Supreme Court in the case of GKN Driveshafts (India) Ltd. v. ITO [2003] 259 ITR 19/[2002] 125 Taxman 963 the petitioner was not aware about the reasons recorded by the Assessing Officer for issuing such notice. The Assessing Officer issued a notice under section 142(1) of the Act on March 6, 2002, calling upon the petitioner to supply the following details : "Details of premium paid on Insurance policy taken on Keyman's life of your company & details of guaranteed addition and bonus intimated by LIC & received by you. The above details may please be furnished for A.Y. 1996-97 & A.Y. 1997-98. It may please be noted that guaranteed addition & bonus are taxable as per provisions of I.T. act." 2.4 From such communication it can…

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