( 1 ) IN the present writ petition, notice issued under Section 148 of the IT Act, 1961 (hereinafter referred to as the Act), for the asst. yr, 1997-98 has been challenged.

( 2 ) THE petitioner is a dealer engaged in the business of handicraft items and marble goods in the city of Agra. It caters to the need of foreign tourists, who visit the city. The goods are sold against foreign exchange. While taking the goods out of the country, it requires customs clearance at the airport. The petitioner claimed benefit of special deduction under Section 80hhc of the Act in respect of the turnover and profit of counter sales made against convertible foreign exchange to the foreign tourists. The assessing authority in the original assessment order accepted the claim and granted deduction. However, he issued notice under Section 148 of the act seeking to withdraw the deduction granted to the petitioner under Section 80hhc of the Act.

( 3 ) WE have heard Sri Manish Goel, learned counsel for the petitioner, and Sri A. N. Mahajan, learned standing counsel appearing for the respondents.

( 4 ) IT is not in dispute that notice under Section 148 of the Act has been issued only to withdraw the deductio

Click Here to Read the rest of this document