Dismissing the petition the Court held that, certain mixed questions of law could not be decided in favour of the assessee nor could the Department be deprived of its right to probe the matter further and formulate an opinion with reference to the provisions of the Act and pass orders. The assessee’s case was one of mixed questions of law and facts and therefore, the Assessing Officer had to consider all the materials available on record for the purpose of reopening the assessment including the objections submitted by the assessee, before passing an assessment order. The assessee was entitled to submit all its objections and legal grounds and materials before the Assessing Officer enabling him to consider them and pass an assessment order. The contention of the assessee that it was entitled to the benefit of the proviso to section 147 could be considered only with reference to the facts and materials on record before the Assessing Officer and that exercise could not be done by the court in writ jurisdiction under article 226 of the Constitution of India. Court also held that, section 149(1)(a) was not applicable to the assessee since the purported escapement of income chargeable to tax was beyond Rs. 1 lakh. S. 149(1)(b) was applicable to the assessee. Accordingly the notice issued within a period of six years is held to be with in the period of limitation. (AY. 1996 -97)