The assessee was the New Town Development Authority appointed under sub-section 3(A) of section 113 of the MRTP Act, 1966 and the work of assessee was being carried out on behalf of the State Government. The assessee was acting as an agent of the State Government and its income was restricted to Rs. 5 lakhs. The Assessing Officer accepted the returned income of the assessee to be a fixed amount of Rs. 5 lakhs only.

Subsequently, the Assessing Officer issued a reopening notice under section 148A(b) upon the assessee and further an order was passed under section 148A(d) and notice under section 148 was issued. On writ the Court held that the Assessing Officer has accepted the returned income of the assessee to be a fixed amount of Rs. 5 lakhs only therefore  the question of any income escaping assessment in the case of the assessee does not and cannot arise. Therefore, the notices and orders are quashed and set aside. (AY. 2013-14)