Reassessment notice validity upheld where recorded reasons and sanction existed, and prior communication of reasons was not required.

A reassessment notice under Section 148 of the Income-tax Act was upheld where reasons had been recorded on file and sanction was obtained from the Deputy Commissioner. The Court treated the existence of recorded reasons showing belief that income had escaped assessment as sufficient, and held that prior communication of those reasons to the assessee was not required before issuance of notice. Challenges alleging absence of reasons, irrelevance of the recorded reasons, non-application of mind, and legal malice were not supported on the material before the Court, so the notice was not liable to be quashed.

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Issues: Whether the notice issued under Section 148 of the Income-tax Act, 1961 for reassessment was liable to be quashed for want of communicated reasons, alleged non-application of mind, and alleged legal infirmities in the recorded reasons.

Analysis: The notice was supported by reasons recorded on the file and by the sanction of the Deputy Commissioner. The existence of reasons for formation of belief that income had escaped assessment was sufficient, and communication of those reasons to the assessee before issuance of notice was not . The challenge based on absence of reasons, alleged irrelevance of reasons, and alleged legal malice was not found sustainable on the material placed before the Court.

Conclusion: The notice under Section 148 was held to be valid and not liable to be quashed.

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