INCOME TAX ACT, 1961

Section 148

Reassessment - Notice under section 148 - Time-limit - Notice issued earlier then outer time limit

AO reopened assessment by issuing section 148 notices dt. 7-3-2011 on the ground that details of investment in shares and immovable property were not originally disclosed by assessee at the time of filing of returns under section 139 for respective assessment years. Thereafter, AO completed reassessment, CIT(A) allowed appeals filed by assessee and set aside respective orders of re-assessment on a technical ground of failure to comply with mandatory requirement of section 143(2). AO for the second time issued notices under section 148 on 17-3-2013. Assessee by way of writ petition challenged the notices as barred by limitation.Held: As Notices dated 7-3-2011 issued under section 148 for respective assessment years were not set aside, therefore, it could not be said that proviso to section 147 was applicable to assessee's case. As there was failure on the part of assessee to disclose fully and truly all material facts necessary for assessment for the respective assessment years, last date for invoking section 148 for assessment year 2008-09 expired only on 31-3-2015 and for assessment year 2009-10 on 31-3-2016 in view of section 149(1)(ii). Since, impugned notices dated 17-3-2013, were well within time. Had there been a finding given on merits that there was no case for escaped assessment for respective assessment years in response to section 148 notice issued for the 1st time on 7-3-2011, it could be said that the 2nd Notice dated 17-5-2015 under section 148 would have been barred. Therefore, impugned notices were in time and writ petitions were dismissed.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2009-10

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