Hence proper investigation regarding these loans is necessary.
Sd S. P. Chaliha Income Tax Officer, Ward A, Muzaffarpur.
Whereas 1 have reason to believe that your income chargeable the income of 1960 1961 in respect of which you are assessable to tax for the assessment year 19 19 has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961.
Whether the Commissioner is satisfied that Yes it is a fit case for the issue of numberice under Sd K. Narain section 148.
Sd S. P. Chaliha, 30 4 66.
Appeal by special leave from the judgment and order dated January 17, 1967 of the Patna High Court in C.W.J.C. No.
A P/ Misc.
C. Manchanda, R. N. Sachthey and B. D. Sharma, for the respondent.
The Judgment of the Court was delivered by Hegde, J. This is an assessees, appeal by special leave against the judgment of the High Court of Patna dismissing in limini its writ petition under Arts 226 and 227 of the Constitution of India.
In that statement it gave the lull names and address of the alleged creditors.
The assessee challenged the validity of that numberice as well as proceedings taken on the strength of that numberice on various grounds.
After enquiry, the assessees total income was assessed at Rs.
13 5 66 Commissioner of Income tax, Bihar and Orissa, Patna Whether the Board is satisfied that it is aSecretary, Board of Revenue.fit case for the issue of numberice under s. 148.
From D.I.s Inv.
Income tax Officer, A Ward, Muzaffarpur.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The order sheet recording the reasons of the Income tax Officer as required by s. 148 2 was number produced.
During the year the assessee hasshown to have taken loans from various parties of Calcutta.
On June 3, 1966, the 1st respondent Income tax Officer Ward A,, Muzaffarpur issued to the assessee a numberice under s. 148 of the Indian Income tax Act, 1961.
C. Chagla, N. D. Karkhanis, S. P. Chowdhury, Bhuvanesh Kumari, for the appellant.
It is a partnership firm.
15/ 65 66/1953 2017 dated Patna 24 9 65, it appears that these persons are name lenders and the transactions are bogus.
TO M s. Chugamal Rajpal, Muzaffarpur.
The assessee is having companystruction companytracts under the Railways as well as the Government.
The assessee also produced before him a statement showing various creditors from whom it had borrowed on Hundis during the accounting year in question.
69,886/ .
The numberice is being issued after obtaining the necessary satisfaction of the Commissioner of IncomeTax, Bihar and Orissa, Patna.
I therefore propose to re assess the income for the said assessment year and I hereby require you to deliver to me within 30 days from the date of service of this numberice a return in the prescribed form of your income The income assessable relevant to the assessment year 1960 of in respect of which you are assessable for the said assessment year.
1311 of 1967.
For the assessment year 1960 61, relevant to the accounting year 1959 60, after the assessee submitted its income tax return, it was asked by the Income tax Officer during the income tax assessment proceedings to produce before him its books of account and the other relevant papers.
Income Tax Officer, Muzaffarpur Dated, the 3 6 1966.
When the appeal was taken up for hearing on the 18th January 1971, only the report submitted by the Income tax Officer to the Commissioner and the order of the Commissioner was produced.
The material portion of that numberice reads as follows Notice under s. 148 of the Income tax Act, 1961.
5 D.I./63 64/5623 dated 13 8 65, forwarded to this office under C.I.T. Bihar and Orissa, Patnas letter No.
952 of 1966.
T.O. 30 4 66 believed to have escaped assessment A Ward, Muzaffarpur.
