K.S. HEGDE, J.

(1) CIVIL No. 1301 (NCT) of 71 is by special leave. This appeal was filed under the following circumstances.

(2) CIVIL No. 1981 of 1968 was brought on the strength of a certificate issued by the High court. That certificate, being not in accordance with law in as much as the High. court gave no reason in support of the same, the appeal filed on the strength of that certificate turned out to be not maintainable. Hence the appellant had to move this court for special leave to appeal against the judgment of the High court. The same having been granted he has brought Civil No. 1301 of 71. Hence these two appeals against the same judgment.

(3) NOW coming to the merits of the case, the Income-tax Officer issued a notice to the respondent on/ 5/01/1962 under S. 34(1) (a) of the Indian Income-tax Act, 1922 seeking to reopen his assessment for the assessment year 1946-47 the relevant accounting year being the calendar year 1945. The assessee respondent challenged the validity of that notice by means of a writ petition under Article 226 of the Constitution before the High court of Bombay. The High court accepted that writ petition and quashed the impugned notice by its order dated 6/03/1963. On 1/04/1962 the Income-tax Act, 1961 came into force. Thereafter the Income-tax Officer again issued a notice, on 26/03/1963 under S. 148 of the new Act in respect of the very assessment which he earlier unsuccessfully sought to reopen by means of a notice under S. 34(l)(a) of the 1922 Act. The assessee again challenged the validity of the notice issued to him by means of another writ petition, before the High court of Bombay. The High court quashed that notice on the ground that the Income-tax Officer was not competent to issue that notice. It is against that decision, the present appeals have been brought to this court.

(4) S. 147 of the 1961 Act provides: If-

(A) the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under S. 139 for any assessment year to the Income-tax Officer or to disclose fully and truly all material tacts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or

(B) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income-tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year,

he may, subject to the provisions of S. 148 to 155 assess or reassess such income or re-compute the loss or the depreciation allowance, as the case may be, for the assessment year concerned (hereinafter in Sections 148 to 153 referred to as the relevant assessment year)"

(5) S. 148 reads :

"(1) Before making the assessment, re-assessment or re-computation under S. 147, the Income-tax Officer shall serve on the assessee a notice containing all or any of the requirements which maybe included in a notice under Ss. (2) of S. 139; and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section.

(2) The Income-tax Officer shall, before issuing any notice under this S. record his reasons for doing so".

(6) S. 149 prescribes the time limit for issuing a notice under Section 148. Ss. (1) of S. 149 says:

"NO notice under S. 148 shall be issued-

(A) in cases falling under clause (a) of S. 147-

(I) for the relevant assessment year, if eight years have elapsed from the end of that year, unless the case falls under sub-clause (ii);..... ....."

Section 297 deals with repeals and savings. S. 297(2)(d)(ii) reads thus: -

"NOTWITHSTANDING the repeal of the Indian Income-tax Act, 1922 (11 of 1922) (hereinafter referred to as the repealed Act)..................... (d) where in respect of any assessment y