Law:

Section:

Income tax---Re assessment Income escaping assessment Notice No material before assessing Officer for belief that income had escaped assessment ¬Notice for re opening assessment Not valid in law. Income tax Officer v. Madnani Engineering Works Ltd. (1979) 118 I T R 1 (S C); I. R. C. v. Rossminster Ltd. (,1979) 52 T C 160; Liversidge v. Anderson (1942) A C 206 (H L) and Nakhuda All v. Jayaratne 1951 A C 66 (P C) ref. JUDGMENT AVADAH BEHARI, J. The petitioner, Shri A. K. Sen, is a senior Advocate. He was enrolled as an Advocate in the Calcutta High Court in March, 1941. Very soon he was in large practice. Soon he was in the front rank. He had a substantial professional income and was being assessed to Income tax. In April, 1997, he became the Minister of Law in the Central Government. This post he continued to hold till January, 1966. When the petitioner joined the Government of India his income dwindled. His main source of income was salary as a minister. For the assessment year 1962 63, he filed his return showing. a salary income of Rs. 30,300 property income of 2/3rds of Rs. 9,000 and interest income of Rs. 2,795 and professional and royalty income of Rs. 8,005.42. On this return, the I. T. O. assessed him and determined the tax which the petitioner paid. A notice dated 7th August, 1974, was issued to the petitioner. The I. T. O. proposed to reassess the petitioner's income for the assessment year 1962 63, on the ground that he had reason .to believe that income for that assessment year had escaped assessment within the meaning of section 147 of the 1. T. Act, 1961 (the Act). The petitioner was informed that a notice under section 147/148 of the Act dated 24th March, 1971, was issued to him and was served on him. The petitioner denied the service of the notice. Thereupon, the I. T. O. gave him a copy of the notice dated 24th March, 1971. On 21st August, 1974; the petitioner wrote to the I. T. O. objecting to the notice and the reassessment proceedings proposed to be taken for the assessment year 1962 63. lie, however, filed under protest a fresh return for the year 1962 63, repeating the same income as had been shown in the first return and objecting at the…

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