Nagendra Rai, J.

1. Both the applications arise out of the same matter and are being disposed of by this common judgment.

2. The petitioners in both cases have challenged the order dated February 1, 1994, passed in Complaint Case No. 1 of 1994 taking cognizance under Sections 276C and 277 of the Income-tax Act, 1961, against them.

3. The Union of India through the Deputy Commissioner of Income-tax, Special Range, Jamshedpur, filed a complaint petition before the Special Judicial Magistrate, Jamshedpur, alleging, inter alia, that the accused company is a private company and is an assessee within the meaning of Sec. 2(7) of the Income-tax Act, 1961. Two returns of loss were filed by the assessee-company first on December 28, 1989, disclosing total loss of Rs. 91,69,770 and the second revised return was filed on October 19, 1990, showing total loss at Rs. 10,77,040. The assessment was completed under Sec. 143(3) of the Act determining the total income at nil. Two additions, the first one of Rs. 74,850 on account of discrepancy in stock and the second one of Rs. 1,25,000 on account of disallowances of motor car expenses, were made. Before making these additions, sufficient oppo