Law:

Section:

Section 148 of the Income-tax Act, 1961 - Reassessment - Issue of notice for - Assessment years 1982-83 to 1984-85 - Whether only requirement in law for initiating proceedings under section 148 is that there must be reasons to justify belief that there is escapement and suppression of income and that there is no need to disclose reasons - Held, yes FACTS The petitioner was assessed and the assessments for the assessment years 1982-83 to 1984-85 were completed. Subsequently, penalty and interest were also levied. On appeal, the levy of penalty was set aside and an application under section 273A was pending. While so, the Deputy Commissioner, the first respondent, issued notice under section 148 proposing to reopen the assessments. The petitioner stated that since the first respondent had not disclosed the reasons for reopening the assessment, he was not bound to file returns. In reply the first respondent observed that there was no need to disclose reasons and that the only pre-condition for reopening an assessment was that the assessing authority should record reasons therefor in the order sheet. On writ: HELD The only requirement in law for initiating proceedings under section 148 is that there must be reasons to justify the belief that there is escapement and suppression of income. The requirement is only so far and no further and the requirements of quasi-judicial determination do not govern the proceedings at the stage of issuing a notice. Because no reasons are stated, it means not that there are no reasons. In the instant case, the file disclosed that there were grounds for reasonable belief to initiate proceedings. Whether the reasons were sufficient to make an assessment or not, was a matter to be considered at a later stage, after considering the case of the assessee and other relevant factors. The writ petition was dismissed. CASES REFERRED TO ITO v. Lakhmani Mewal Das AIR 1976 SC 1753, Ganga Saran & Sons (P.) Ltd. v. ITO AIR 1981 SC 1363, and S. Narayanappa v. CITAIR 1967 SC 523 and Sowdagar Ahmed Khan v. ITO [1968] 70 ITR 79 (SC). K. Prabhakaran for the Petitioner. P.K.R. Menon for the Respondent. JUDGMENT 1. Petitioner seeks to quash Exts. P-12…

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