( 1 ) THIS rule under Article 226 of the Constitution is directed against the notice dated November 23, 1974, issued by the respondent No. 4, the Commissioner of Income-tax, under Section 263 of the I. T. Act, 1961, for the assessment year 1971-72.

( 2 ) THE petitioner No. 1 is an existing company within the meaning of the Companies Act, 1956. Before the 1st January, 1954, petitioner No. 1 became the owner of the lands situated at 62/5, Ballygunge Circular Road, Calcutta.

( 3 ) DURING the previous year relevant to the assessment year, petitioner No. 1 sold a major portion of the aforesaid lands to different persons for a total sum of Rs. 7,51,512 and in its return of income declared the aforesaid amount as the full value of the consideration received by it for the purposes of computation of the capital gains.

( 4 ) IN the course of assessment proceedings respondent No. 1, the ITO, referred the valuation to the Valuation Officer under Section 55a of the I. T. Act, 1961, and thereafter in the assessment order dated March 22, 1974, he recorded, inter alia, as follows :"i have come to know that there is no possibility of getting the valuation report by 31-3-74. Since this i