TaxTMI 
TaxTMI 
1985 (5) TMI 9
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.... pursuant to the said notices had been completed. Before the demand notices and assessment orders pursuant to the said reassessments for the said assessment years could be served upon the assessee, the assessee moved an application under article 226 of the Constitution. The learned judge dismissed the writ application on the ground that the writ petitioner has adequate alternative remedy under the Income-tax Act, 1961, and as such the petitioner should not be allowed to invoke the writ jurisdiction. At the hearing before us, it has been contended by Mr. Anil Kumar Roy Chowdhury, learned counsel on behalf of the appellant that since the notices are without jurisdiction, the learned judge was not justified in dismissing the writ applicatio....
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....e materials, I have reasons to believe that income arising out of that has escaped assessment. Hence, proceedings under section 147(b) are initiated. Issue notice under section 148. (Sd.) Illegible." It is now well-settled that the Income-tax Officer can invoke jurisdiction under section 147(b) if he has information in his possession to form the belief that income has escaped assessment. Section 147 postulates that information must have come to the possession of the Income-tax Officer after he had passed the original assessment order and it is only on such information that the Income-tax Officer is entitled to act. If the information was already with him and he did not act on the basis of such information before the assessment was com....
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....of Explanation 2 below section 147 and section 292B, the case falls under section 147(a) and not section 147(b). Thus conditions precedent for the assumption of jurisdiction had been satisfied and the requirement of law had been fulfilled in the facts and circumstances of the case." Thereafter it is recorded that the assessee has not accounted for " properly for recovery out of wastage account ". It appears from the reassessment order that although the assessment was reopened under section 147(b), the Income-tax Officer sought to justify the reopening under section 147(a). On the materials disclosed before us, we are unable to sustain the impugned notices either under section 147(a) or under section 147(b). From the original assessmen....
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....a), no sanction of the Commissioner of Income-tax would have been necessary. But this cannot authorise the Income-tax Officer to convert a proceeding under section 147(b) into a proceeding under section 147(a) unless the facts and materials forming the basis of the reasons recorded under section 148(2) satisfy the conditions precedent for assumption of jurisdiction under section 147(a) also. Similarly, where the reassessment proceeding is initiated under section 147(a), the Income-tax Officer can very well justify his action under section 147(b) subject to the period of limitation as prescribed therefor, provided that the conditions of section 147(a) are satisfied. In this case, the Income-tax Officer has sought to justify his action by ....