1985 (7) TMI 58

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....on of India, the petitioner is challenging the legality of the notices dated January 18,1984, issued by the respondent No. 1 under section 148 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "). The notices were issued in respect of the assessment years 1975-76 to 1979-80. They are in identical terms and merely recite that respondent No. 1 has reason to believe that income charge....

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....e notices were issued only on the basis of audit objection. To this letter, a reply was sent by the respondent No. 1 on February 25, 1984, stating that it was not possible to give reasons for the issue of the notice at that stage. This reply on the part of the respondent No. 1 has given rise to the filing of the present petition. The respondents have not filed any return to disclose what reason....

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.... 1,00,000 to the petitioner in the assessment year 1973-74 and that amount was invested in a private company, but the interest secured from the deposit was not disclosed. Even assuming that this reason has prompted respondent No. 1 to issue the notices, still it must be concluded that this was a wholly unsustainable reason to exercise power under section 148 of the Act. Mr. Deodhar conceded that t....