The court emphasized that the question of whether there was sufficient material or information to invoke the provisions of Section 147 should be decided in the assessment proceedings and not under article 226 of the Constitution.

, J.

1. We do not think that there are any grounds to interfere with the order of the learned single judge wherein the initiation of the proceedings under Section 147 of the Income-tax Act (briefly "the Act") was questioned. The main point of attack by learned counsel for the petitioner was that the Income-tax Officer had no jurisdiction to initiate proceedings on the facts and circumstances of the case. While disposing of the writ petition, the learned single judge has held that there is a prima facie case to believe that the Income-tax Officer had some information in his possession, in consequence of which, he might have entertained a reason to believe that income chargeable to tax has escaped assessment, but, as remarked above, the proceedings are at the stage of issuing a notice under Section 147 of the Act. Whether there was any material or information in the possession of the Income-tax Officer which is sufficient to invoke the provisions of Section 147 is to be decided under the provisions of the Act itself and that could not be decided under article 226 of the Constitution. It has to be decided in the assessment proceedings after considering the objections raised by the assessee before the Income-tax Officer, the appellate or other authorities. Accordingly, we dismiss this appeal with liberty to the appellant to raise all questions that are open to it under law before the assessing authorities, including the question of jurisdiction or of the conditions precedent for invoking the provisions under Section 147 of the Act. In other words, the position would be as if the petitioner company had not filed any writ petition.

2. Civil Miscellaneous No. 220 of 1987 is dismissed as infructuous. Civil Miscellaneous No. 221 of 1987 is allowed.