( 1 ) THIS appeal is against the judgment and order dated the 22nd September, 1976, passed by the court below discharging the rule and dismissing a writ petition made by the appellant under Article 226 of the Constitution challenging a notice dated 20th March, 1969, under Section 148 of the I. T. Act, 1961, issued by the lto, 'c' Ward, Companies District-I, Calcutta, the respondent No. 1.

( 2 ) THE appellant, M/s. East Coast Commercial Co. Ltd. , is a company. It carries oh business, inter alia, in jute, gunny and shares and also derives income from property, dividends and interest on securities. The income-tax assessment of the appellant for the assessment year 1952-53, the relevant accounting period being from 17th July, 1950, to 29th October, 1951, was completed by C. R. Nair, the then ITO, Companies District-I, Calcutta, on the 29th March, 1957, under Section 23 (3) of the Indian I. T. Act, 1922. The appellant had filed its balance-sheet and profit and loss account for the said year along with the return. In the course of the said assessment, pursuant to directions of the assessing ITO, the appellant submitted particulars and statements relating, inter alia, to its purchase and sale of jute of the value of Rs. 50,000 and above, which showed sale of jute by the appellant to Assam Jute Traders amounting to Rs. 25,99,133-11-3. The said statements showed that the appellant had no transaction in P. D. Os. or in shares with and did not purchase any jute from the Assam Jute Traders. In the assessment proceedings Mr. D. N. Sharma, advocate, and Ramnath Tulsyan, the accountant of the appellant, appeared before the assessing ITO as the authorised representatives of the appellant and produced bills, vouchers and other relevant documents as required by him. The assessing ITO also discussed the case with the said representatives of the appellant and thereafter completed the assessment.

( 3 ) THE appeal by the appellant against the said assessment to the AAC of Income-tax. Range-I, Calcutta, was disposed of along with other appeals for other assessment years by a consolidated order dated the 23rd March, 1962.

( 4 ) THE appeal by the revenue to the Income-tax Appellate Tribunal against the said order of the AAC was disposed of by the Tribunal by an order dated the 13th February, 1964, upholding the order of the AAC. The revenue thereafter came up in a reference before the court on certain questions of law which were disposed of by this court on the 12th February, 1969.

( 5 ) IN the meantime a summons under Section 131 of the I. T. Act, 1961, dated the 13th July, 1967, issued by the respondent No. 1 was served on the appellant calling upon it to produce its books of account and documents for the financial year relevant to the assessment year 1952-53 and dividend payment register, which had been produced before the assessing ITO in the course of the assessment for the said assessment year. By a letter dated 1st August, 1967, the appellant contended that as no proceedings for the year relevant to the said assessment year were pending at the time and as the said books related to a period of more than three years from the previous year relevant to the then current assessment year, respondent No. 1, therefore, had no competence to issue the said summons and ask for production of the said books. By a letter dated the 28th July, 1967, respondent No. 1 again asked for the production of the said books by the 4th August, 1967, which was also not complied with by the appellant. Thereupon by an order dated the 4th September, 1967, respondent No. 1 levied a penalty of Rs. 500 under Section 131 (2) of the I. T. Act, 1961. The appeal by the appellant against the said order of penalty is pending before the AAC.

( 6 ) BY a letter dated 18th January, 1960, respondent No. 1 asked the appellant to furnish full details of all its transactions of sale and purchase of jute and in P. D. Os. and shares with Assam Jute Traders. The appella