Rama Jois, J.—This writ petition is presented by an Income Tax assessee questioning the legality of the notice issued under s. 148 of the I.T. Act, 1961, proposing to take action under s. 147 of the Act in respect of the assessment year 1968-69.

2. For the assessment year 1968-69. Assessment was completed on March 22, 1972, (Ex. A) on July 24, 1975, notice was issued under s. 148 of the Act on the ground that the ITO had reason to believe that certain income exigible to tax during the assessment year 1968-69, had escaped assessment within the meaning of s. 147 of the Act.

3. On behalf of the respondent. It was submitted that the action was initiated as the ITO noticed that he had allowed certain expenditure incurred during the previous years, but prior to the actual date of commencement of business.

4. Learned Counsel for the petitioner submitted that in respect of the above matter, no action could be initiated under s. 147(a) on the Act as the ITO was fully aware of the fact that the business of the assessee, namely, exhibition of films, commenced only on January 26, 1968. He pointed out that there was a reference to this fact in the order of assessment itself. Even after not