The power to issue commission under Sec. 131(1)(d) of the Income-tax Act, 1961, can be exercised only in connection with a pending proceeding.

Sachchidanand Jha, J.

1. The proposition raised for consideration on which, it \s said, there is no precedent of this court, is straight and simple enough to admit of any doubt or dispute. There may of course be dispute regarding its application in the facts and circumstances of the particular case. The petitioner has been served with a notice issued in terms of Sec. 131(1)(d) of the Income-tax Act (in short, "the Act"), in the matter of ascertainment of cost of construction of a house by the Assistant Valuation Officer, the Income-tax Department at the behest of the Income-tax Officer, Ward-III, Ranchi. She seeks quashing of the notice and a declaration that the proposed investigation is illegal and without jurisdiction principally on the ground that an investigation of the kind can be made only in connection with and during pendency of a proceeding, and inasmuch as no proceeding is pending (or can be initiated) the proposed investigation is an abuse of the process of law and liable to be quashed. The relevant facts are as follows .

2. The petitioner purchased four kathas of land being portion of plot No. 1175 at Village Hesal (Aryapuri), Ratu Road, Ranchi, for a consideration of Rs. 2,000 on March 6, 1965. She got her name mutated in the revenue records of the State in Case No. 786 R-27 of 1965-66 by the Circle Officer, Ranchi. In furtherance of the said order of mutation a correction slip was issued in her name on January 4, 1966, and she was granted rent receipt. On December 28, 1966, the petitioner applied for permission to build a new house before the Executive Officer of the Ranchi Municipality along with a building plan. Permission was granted vide letter No. 376/B/Engineering of 1966 on July 15, 1967. It is said that after the sanction of the building plan, the petitioner started construction of the house some time in the year 1967 and constructed a major portion on the ground floor some time in the month of September, 1968. She thereafter applied for electric connection before the Ranchi Electric Supply Company Ltd. After due enquiry and verification an estimate was served on her on October 28/31, 1968. After deposit of the requisite amount on December 23, 1968, she was granted electric connection vide Consumer No. G. 3579. The petitioner in course of time constructed the second storey in the month of December, 1973. The total cost of construction of the entire building, according to her, was Rs. 30,000 approximately. She has been assessed to holding tax, etc., by the Ranchi Municipality, vide Holding No. 495 M2 with respect to the house since 1973-74. The petitioner has annexed documents in support of her above-stated case regarding purchase of the land, mutation of name, sanction of building plan, grant of electric connection and municipal receipts.

3. Pursuant to a notice issued by the Income-tax Officer, Circle-I, Ward-"D", Ranchi, dated June 3, 1982, under Secs. 139(2) and 133 of the Act, the petitioner filed a return of income for the assessment year 1982-83 relevant to the accounting year 1981-82 on August 27, 1982, showing her total income at Rs. 5,714 in which she showed rental income from the said house apart from other income. According to the petitioner, her income never exceeded the exemption limit allowed under the Act and, therefore, there was no occasion for her to file any return of income or to show the rental income from that house. The abovesaid return filed on August 27, 1982, was finally accepted after hearing under Sec. 143(3) of the Act. The petitioners case of receiving rental income from the said house property was thus accepted without any objection. She did not file the return of her income thereafter up to the assessment year 1989-90 as her income, according to her, remained below the taxable limit. For the assessment year 1990-91, however, when her total income exceeded the taxable limit she filed the return on August 31, 1990, showing the total income at Rs. 18,300 as rental inc