Law: Income Tax Act, 1961

Section: 147

Income-tax----Reassessment---Notice---Writ---Reason to believe that income escaped assessment---Source of money deposited not explained---Assessing authority justified in initiating action under 5.148---Indian Income Tax Act, 1961, Ss.147 & 148. The Income-tax Officer issued notices under section 148 of the Income Tax Act, 1961, dated March 20, 1997, to the assessee as he had reason to believe that income to the extent of Rs.69,538 and Rs.14,000 for the assessment years 1994-95 and 1995-96 had escaped assessment. It was not disputed that the amounts were deposited by the petitioner. According to the assessees counsel, the deposits had been made on behalf of one D. On a writ petition: Held, dismissing the petition, that there was nothing to show that the authority did not have any reason to believe that income chargeable to tax had escaped assessment. The petitioner has not shown by any evidence on record as to what was the source of the money deposited by him. Therefore, the issue of notice under section 147 was valid. Asoke Kumar Sen v. ITO J1981) 132 ITR 707 (Delhi); ITO v. Lakhmani Mewal Das (1976) 103 ITR 437 (SC); R.S. Chiranji Lal & Sons v. CIT (1959) 36 ITR 407 (Punj.) and Sheo Nath Singh v. AAC of I.T. (1971) 82 ITR 147 (SC) ref. JUDGMENT JAWAHAR LAL GUPTA, J---The petitioner is aggrieved by the notice, dated March 20, 1997, by which the Income-tax Officer informed him that he had "reason to believe that-income in respect of-assessment years 1994-95 and 1995-96, has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961 ". These notices related to two years. The reasons were communicated vide documents, copies of which have been produced as Annexures P-31 and P-32. It was pointed out that during the period from June.30, 1993, to February 23, 1994, the petitioner had made deposits of monthly installments of a total sum of Rs.69,538 in respect of the assessment year 1995-96, the petitioner was informed that he had made a deposit of an amount of Rs.14,000 on March 9, 1995. -Thus, notice under section 148 was given to the petitioner. Mr. Mittal, learned counsel for the petitioner, contends that the notices issued by the…

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