KALYAN JYOTI SENGUPTA, J.

( 1 ) THIS writ petition is directed against the proceedings initiated by the assessing authority which was started with the impugned notices dated June 10, 1997, May 21, 1997, June 6, 1997, June 25, 1997, February 19, 1998 and the impugned order dated March 24, 1998.

( 2 ) IT appears that the assessing authority has assessed the income as well as tax to be paid by the writ petitioner. In view of the default, the aforesaid authority has directed to initiate a penalty proceeding under Sections 271b and 271 (1) (c ). It appears from the impugned order which was passed in the aforesaid impugned proceedings that it has been held amongst others that the writ petitioner is obliged to pay income-tax on the income which fetched from consultancy services rendered to Larsen and Toubro. This case has a slightly long history.

( 3 ) THE writ petitioner-company upon an agreement in writing rendered technical know-how and consultancy services to the Indian company, Larsen and Toubro. Admittedly, the writ petitioner-company is a foreign company. The petitioner earned a substantial amount on account of the fees paid by Larsen and Toubro being the Indian company. The wri

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