Valid notice under Income-tax Act 1961 for assessment reopening upheld; legality limited in writ jurisdiction.

The court upheld the validity of the notice issued under section 148 of the Income-tax Act, 1961 for reopening assessment for the year 1988-89. The court found the reasons provided by the Revenue sufficient for issuing the notice and emphasized that the legality of the notice is limited in writ jurisdiction. The petition challenging the notice was dismissed, and the court allowed the Assessing Officer to proceed with further proceedings in accordance with the law.

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Issues involved: Validity of notice issued u/s 148 of the Income-tax Act, 1961 for reopening assessment for the year 1988-89.

Summary:
The petitioner, a private limited company engaged in garment stitching, filed an income return for 1988-89 which was accepted by the Assessing Officer u/s 143(1) after adjustments. Subsequently, a notice u/s 148 was issued in 1993 to reopen the assessment, challenged by the petitioner. The Revenue defended the notice citing valid reasons supported by recorded facts. The petitioner contended the notice lacked reasons and was based on a change of opinion without full disclosure.

The court held that the notice u/s 148 was valid and legal, sustaining it based on reasons recorded by the Assessing Officer. The court emphasized that the legality of the notice is limited in writ jurisdiction and reasons need not be communicated to the assessee. The court found the reasons provided by the Revenue sufficient for issuing the notice, especially considering no regular assessment was conducted u/s 143(3) for the petitioner. The court dismissed the petition as devoid of substance, upholding the impugned notice u/s 148 issued in 1993.

The court vacated the stay order on further proceedings and allowed the Assessing Officer to proceed in accordance with the law.

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