K. VINOD CHANDRAN, J.

1. The appellant impugn the judgment of the learned Single Judge in a writ petition, which was filed without availing the appellate remedy as available in the statute. Suffice it to notice on facts that the appellant, a private limited Company, incorporated under the Companies Act, and in which the public are not substantially interested, issued shares at a premium above the face value. The appellant did not offer any amount so received as income for the purpose of taxation under the Income-tax Act. A notice under Section 143(2) was issued and the appellant is said to have disclosed the genuineness of the persons, who purchased the said shares on a premium. The Assessing Officer then attempted to tax the amounts so received under Section 56(2)(viib) of the Income Tax Act, 1961 [for brevity, the Act].

2. The appellant/assessee contended before the learned Single Judge that the notice issued was only with respect to the source from which the funds were received and the same having been disclosed, there was no scope for a further proceeding, especially under Section 56(2)(viib) of the Act. The provision would not be applicable unless the test under Sectio