Mr.f.v.irani With Mr.pramod v. J.p.devadhar,Jj.dated: 13Th March, 2006

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORIGINAL SIDE WRIT PETITION NO.334 OF 2006 Jagdishprashad M. Joshi Petitioner vs.The Assistant Commissioner ofIncome Tax, Central Circle 11, & ors.Respondents Mr.F.V.Irani with Mr.Pramod V. Vaidya i/b.Mr.A.K.Jasanifor the petitioner. Ms.Ponam Bhosale for the respondents. CORAM: R. M. LODHA & J.P.DEVADHAR,JJ.DATED: 13th March, 2006 P.C. Heard. petitioner’s objections by speaking order, naturally the matter must go back to him for reconsideration. 3. The petitioner was served with the notice underSection 148 of the Income Tax Act, 1961 intimating tohim that his income for the Assessment Year 1998-1999chargeable to tax has escaped assessment within themeaning of Section 147 of the Income Tax Act. Thereasons that led to the forming of such opinion werefurnished and in response thereto the petitioner filedhis objections. Inter alia the objection was raisedthat the sales made to the two parties viz. M/s.JaywantIndustries Limited and M/s.Jaywant Products Limitedamounting to Rs.10.25 crores has already been assessedduring the course of two block assessment orders passed on 31st March, 2004 and 30th May, 2004 respectively. The objections filed by the petitioner read thus: "1.2Firstly, the very basic requirementu/s.147 is that there should be reasonto believe that any income chargeable totax has escaped assessment. The salesmade to the said parties have alreadybeen assessed during the course of twoblock assessments (covering these sales)passed on 31.03.2004 and 30.05.2004.These sales and profit therefrom havenot only been assessed and taxed butalso the said tax demand was paid infull, though under appeal. So your goodselves have erred while recording thereasons stating that he (so calledbogus) sales to these two parties andprofit therefrom has escaped assessment.1.3Secondly, regular assessment for A.Y.1988-99 was completed by your goodselves vide your order dt.30.03.2001 be set aside being non-speaking order and the matter has to be reconsidered by the petitioner. 6. We, accordingly, dispose of this writ petition by the following order: Income Tax, Central Circle 11, Mumbai is quashed and set aside. (ii) (ii) re-assessment pursuant to the notice dated 28th March, 2005. (R.M.LODHA,J.) (J.P. DEVADHAR,J.)