JUDGMENT

MISRA, J. :— Civil Appeal No. 1970 of 1975 is by the Revenue by certificate of the High Court while the other is an appeal by the assessee by special leave. Both arise out of the same judgment of the Allahabad High Court dated 22-4-1974 in an application under Art. 226 of the Constitution by the assessee challenging the notices issued under S. 148 read with Ss. 142(l) and 143(2) of the Income-tax Act of 1961, all dated 7th of March, 1973 relating to the assessment year 1965-66. The notice under S. 148 was on the basis of three cash credit entries dated 22nd of August, 1964 from Messrs Meghraj Dulichand, Messrs Associated Commercial Organisation Private Limited and Messrs Laxminarain Atmaram, the first two being for a sum of Rs. 30,000 each and the last one for a sum of Rs. 40,000/-. The High Court ultimately found :

"The result is that the notice dated 7th March 1973, was within jurisdiction only in regard to the cash credit entry from the firm Meghraj Dulichand of Calcutta. In regard to the other two transactions, the case did not fall within the purview of Cl. (a) of S. 147.

As seen above, the Income-tax Officer had no material in his possession on the basis of which he co