1991 Supreme(Cal) 305

High Court of Calcutta
Ruma Pal, J.
J.C. Mukherjee – Appellant
Versus
Income Tax Officer – Respondent
Civil Rule 5111(W) of 1981
Decided On : Jun 18, 1991

The central legal point established in the judgment is that the satisfaction required under Section 151(1) of the Income Tax Act for the issuance of a notice under Section 148 must be met, and the absence of such satisfaction renders the notice invalid.

Headnote:

Section 148 - Income Tax Act - The court quashed a notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 1964-65, as the satisfaction required under Section 151(1) of the Act was not met.

Fact of the Case:

The petitioner challenged a notice issued under Section 148 of the Income Tax Act, 1961, for the assessment year 1964-65.

Finding of the Court:

The court found that the satisfaction required under Section 151(1) of the Act for the issuance of the notice was not met, as it was arrived at by the Under Secretary of the Central Board of Direct Taxes and not by the Board as required.

Issues: The main issue was the absence of the satisfaction of the Board as required under Section 151(1) of the Act for the issuance of the notice under Section 148.

Ratio Decidendi: The court held that as the condition precedent to the issuance of the notice under Section 148 was absent, the notice could not survive and was accordingly quashed.

Final Decision: The court made the rule absolute and quashed the notice, with no order as to costs.