Law:

Section:

Section 148 of the Income-tax Act, 1961 [Corresponding to section 34(1) of the Indian Income-tax Act, 1922] read with article 226 of the, Constitution - Income escaping assessment - Issue of notice for - Assessment year 1946-47 - Whether where assessment order is challenged on ground that notice initiating proceedings which culminated in assessment is bad in law, was if such objection can appropriately be taken before appellate authorities, petition under article 226 of constitution can not be entertained - Held, yes - Assessee was assessed for relevant assessment year in 1946 under Indian Income-tax Act, 1922 - On 25-3-1963 ITO issued a notice under section 148 to assessee stating that he has reason to believe that assessee's income for said year had escaped assessment and thereafter assessment was made in pursuance of said notice - About more than one and a half year assessee filed instant petition alleging that time prescribed by law for reopening assessment for year 1946-47 had expired long ago and under current Act there was no jurisdiction in department to issue impugned notice - However, it was found that assessee allowed assessment to be made on 31-10-1964 and attempted to evade receipt of intimation of assessment order; that he attempted to evade receipt of intimation of assessment and assessment order which were sought to be served by department in due course; that he actually preferred an appeal since filing of writ petition and suppressed factum of assessment having been made - Whether on facts, it would be better and sounder exercise of discretion to decline interference and leave party to proceed under provisions of Act - Held, yes FACTS The petitioner assessee created a trust in 1942. A sum of Rs. 5 lakhs was ostensibly donated to a trust by the father of the assessee. The assessee was assessed as a HUF for the year 1946-47. On 25-3-1963, a notice was issued to the assessee under section 148 by the ITO stating that he had reason to believe that assessee's income in respect of the assessment year 1946-47 had escaped assessment within the meaning of section 147 and proposed to assess the income for the said assessment year. The assessee filed the…

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