1. Rule. Mr. M.J Thakore waives service of rule for the respondent.
2. By this petition, the petitioner challenges the notice, exhibit-K dated February 7, 1994, issued under section 148 read with section 147 of the Income-tax Act, 1961, inter alia, on the ground that, on the face of it, the assessee has not been found to have failed to disclose truly and fully all material facts necessary for the assessment of its income during the course of assessment proceedings for the assessment year 1987–88, the income of which is sought to be reassessed and, therefore, the notice is clearly barred by time.
3. Under section 147 of the Income-tax Act, 1961, a notice for the reopen-ing of completed assessment after the expiry of four years from the end of the relevant assessment year can be issued only in a case where the assessing authority has reason to believe that income chargeable to tax has escaped assessment by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all the material facts necessary for his assessment for that assessment year. The law also enjoins on the Assessing Officer a duty to record his reasons for holding such a belief before issuing notice under section 148.
4. On the assessee's demand in the present case, reasons for initiating proceedings for reassessment were disclosed by communication dated January 3, 1995, vide exhibit-L.
5. Having perused the reasons we find that there is no whisper about the satisfaction of the assessing authority, much less holding a belief, that any income chargeable to tax has escaped assessment on account of any failure on the part of the assessee to disclose truly and fully all material facts necessary for the assessment.
6. There are no allegations either that the assessee has failed to file the returns or submit particulars as envisaged under the provisions of section 147 for invoking the jurisdiction after the expiry of four years from the end of the relevant assessment year. The assessment year 1987–88 expired on March 31, 1988, and the present notice has been issued in 1994, obviously much after the expiry of four years since March 31, 1988. As a condition precedent necessary for invoking jurisdiction under section 149 beyond four years has not been shown to be existing the issuing of notice after the expiry of four years is wholly without jurisdiction and cannot be sustained. Accordingly, the petition is allowed. Notice, exhibit-K dated February 7, 1994, is quashed and conse-quently any proceedings taken in pursuance thereof, if any, shall also stand quashed. Rule is made absolute. No order as to costs.