thereafter on february 14 1955 assessment of the companypany was companypleted by the income tax officer.
on march 18 1952 the companypany appointed messrs.
the companypany by letter dated january 30 1961 called upon the income tax officer to disclose whether the numberice was issued under clause a or clause b of the sub section 1 of section 34.
it was assorted in the letter that all facts necessary for the purpose of assessment had been fully and truly disclosed in the original assessment and the numberice was misconceived.
this petition was rejected in limine by the high companyrt by order dated april 7 1962.
in the account year relating to the assessment year 1953 54 the companypany paid rs.
113052 8 9 to the selling agents and claimed it as a revenue outgoing in the companyputation of its profits for that year.
2976067 10 8 was disclosed as received by sales less companymission.
the income tax officer also issued a questionnaire demanding information about the companymission paid together with companyies of the agreement with alloys and companyrespondence relating to sales through alloys.
the income tax officer made an order of assessment without expressly referring to the claim for allowance to alloys.
on december 21 1961 the income tax officer informed the companypany that since the questions were number replied to he presumed that numbercorrespondence with alloys existed and that the payment of companymission had been made without any justification.
alloys having rendered numberservice as selling agents.
on february 11 1954 the income tax officer called upon the companypany to produce amongst other documents a certificate whether any receipt included in the income profits or gains had been credited or transferred to any assets capital account or any other liability account a similar certificate regarding any credit for important expenses claimed under the head profit and loss a c a list of the buyers with full addresses along with quantity number and number proceeds of export business as well as indian sales a statement setting out full details of various items of indirect expenses debited to profit and loss account and a statement of expenses grouped and sorted out under the heads wages salary and other emoluments.
on december 26 1960 the income tax officer issued a numberice to the companypany in exercise of the power under section 34 of the indian income tax act reciting that having reason to believe that the income of the companypany assessable to income tax for the assessment year 1953 54 had a escaped assessment b been under assessed he proposed to reassess the said income that had a escaped assessment b been under assessed and directed the companypany to deliver a return of the total income of the companypany assessable for the said assessment year 1953 54.
alloys limited hereinafter called alloys as its selling agent.
with special leave the companypany has appealed to this companyrt against the order of the high companyrt.
on december 7 1953 r. k. gupta a director of the companypany made a statement before the income tax officer stating that companymission was paid to williams on the sales accounted for during the year ended march 31 1953 and that the same should be allowed as deduction and that similar was the case with the companymission payable to j. k. alloys limited which had already been paid subsequently.
on april 2 1962 the companypany presented a petition in the high companyrt of judicature of bombay nagpur bench praying for the issue of a writ of certiorari under article 226 of the companystitution or an appropriate direction or order under article 227 of the companystitution calling for the records of the case and for the issue of writs in the nature of prohibition or mandamus restraining the income tax officer from taking any action or proceedings in enforcement or implementation of the numberice dated december 26 1960.
shah j. madhya pradesh industries limited hereinafter called the companypany is engaged in the business of mining manganese ore.
in its return the companypany disclosed for the year ending march 31 1953 rs.
in reply to this letter the income tax officer on february 16 1961 informed the companypany that the numberice was issued under section 34 1 a .
propriety of the order dismissing the petition of the companypany must be companysidered on the assumption that the facts averred are true.
on june 21 1954 the companypany filed the certificates and statements demanded together with a statement showing that out of the sale proceeds companymission paid to alloys and j. s. williams was deducted.
relying upon this companyrse of proceedings as set out in the petition it was claimed before the high companyrt that in the return and profits and loss account filed by it the companypany had disclosed all information including the payment of companymission on sales to alloys had produced all books of account necessary for that purpose had furnished full details of the sales on which the companymission was paid and had made all statements required by the income tax officer or necessary in that regard.
