Law:

Section:

Section 147 of the Income-tax Act, 1961,(Corresponding to section 34 of the Indian Income-tax Act, 1922) - Income-escaping assessment - Position prior to 1-4-1989 - Whether for initiation of proceedings under section 34 of 1922 Act it is necessary that reasons which induced Commissioner to accord sanction to proceed under section 34 of 1922 Act must also be communicated to assessee - Held, no - Whether it is necessary for ITO to indicate in notice issued under section 34 of 1922 Act period for which re-assessment would be made - Held, no - Whether satisfaction mentioned in section 34 of 1922 Act is satisfaction of Commissioner and adequacy of reasons is not matter for consideration of Court, and it is not open to assessee to agitate question that reasons were inadequate to sanction initiation of proceedings under section 34 of 1922 Act by Commissioner - Held, yes FACTS The re-assessment proceedings were initiated against assessee under section 34 of the 1922 Act. The assessee filed the instant petition for a writ of prohibition preventing the ITO from proceeding further with the proceedings initiated him under section 34 of the 1922 Act on ground that said proceedings were void as reasons which satisfied the Commissioner for sanctioning their initiation were not communicated to him nor period for which reassessment would be made indicated in the notice. HELD There is no requirement in any of the provisions of the Act or any section laying down as a condition for the initiation of the proceedings that the reasons which induced the Commissioner to accord sanction to proceed under section 34 of the 1922 Act must also be communicated to the assessee. The requirement regarding the communication of the reasons to the Commissioner is, intended to safeguard the interests of the assessee against any hasty action on the part of the Income-tax Officer under section 34 of the 1922 Act or an action without any justification. It is not intended by the proviso that the reasons should be communicated to the assessee. The satisfaction mentioned is the satisfaction of the Commissioner and the adequacy of the reasons is not a matter for consideration of the Court, and it is not…

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