Judgement

RAMASWAMI, J.: This appeal is brought by certificate on behalf of the III Income-tax Officer, Mangalore from the judgment of the Mysore High Court dated February 1, 1967 in Writ Petition No. 846 of 1965 holding that the notice under S. 226 (3) of the Income-tax Act, 1961, hereinafter called the new Act , bearing Nos. 770-d/60-61, 61-62, 62-68 and 63-64 issued by the III Income-tax Officer to M/s. Rajarajeswari Motor Service, Mangalore, produced as Ex. VIII with the writ petition was invalid and inoperative in respect of the following items of tax and penalty included therein:-

1. Tax for the assessment year 1960-61 Rs. 7,056.50

2. Tax for the assessment year1961-62 Rs. 485.55

3. Penalty for 1962-63 Rs. 1,890.00

4. Tax for the assessment year 1963-64 Rs. 64,307.90

and quashing the notice to that extent.

2. The impugned notice was issued under S. 226 (3) of the new Act. The respondent Sri M. Damodar Bhat was in arrears in respect of income-tax and penalty levied on him in respect of three or four assessment years. The total amount shown as due in the notice was Rs. 74,086.02 and was made up as follows:

1. Tax for the assessment year 1960-61 Rs. 7,056.15

2. Tax for the assessme