2001 (7) TMI 59

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....ncome for the assessment year 1998-99 on November 30, 1998. It showed a gross income of Rs.1,90,07,901. The petitioner claimed deductions including an amount of Rs.50,07,669 on account of 'excise duty paid in advance allowable under section 43B". This return was considered under section 143(1)(a). An intimation was sent to the assessee vide letter dated August 24, 1999. On August 11, 2000, the Deputy Commissioner of Income-tax, respondent No. 2, gave a notice under section 148 of the Income-tax Act, 1961, to the petitioner. The assessee was required to file its return of income for the assessment year 1998-99 within a period of 31 days. The petitioner filed the return on August 22, 2000. A copy has been produced as annexure P-4 with the ....

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....pila, Commissioner of Income-tax, Ludhiana. The claim made by the petitioner has been controverted. It has been averred that the notices under sections 143(2) and 142(1) were served on the petitioner on September 11, 2000, and not on August 11, 2000. The allegation that the Assessing Officer has rejected the petitioner's submissions is not correct. The objections raised by "the assessee will be considered at the time of finalisation of the reassessment under section 147 of the Income-tax Act, 1961". It has been further stated that a perusal 'of the assessment record for the assessment year 1998-99 revealed that while computing its taxable income, the assessee had deducted a sum of Rs.50,07,669 from the profit determined by it as per profit ....

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....o be quashed . . . " Counsel for the parties have been heard. Mr. G. C. Sharma contended that the respondents had not correctly appreciated the accounting procedure being followed by the petitioner. The authority had no reason to believe that any income had escaped assessment. Relying upon the decisions in Calcutta Discount Co. Ltd. v. ITO [1961] 41 ITR 191 (SC) and Jindal Photo Films Ltd. v. Deputy CIT [1998] 234 ITR 170 (Delhi), counsel contended that the court should quash the impugned notices. The claim made on behalf of the petitioner was controverted by Mr. R. P. Sawhney, learned counsel for the respondents. He placed reliance on the decision of their Lordships of the Supreme Court in Raymond Woollen Mills Ltd. v. ITO [1999] ....