Retrospective amendment defeats limitation challenge to an income-tax notice served after one year

A notice under section 142(1) of the Income-tax Act served beyond one year from the end of the relevant previous year was not barred by limitation because the proviso inserted to section 142(1)(i), with retrospective effect from 1-4-1990, removed the limitation objection. The Delhi High Court answered the issue in the negative on limitation, holding the notice valid and deciding in favour of the Revenue against the assessee.

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Issues: Whether a notice issued under section 142(1) of the Income-tax Act, 1961 and served beyond one year from the end of the relevant previous year is barred by limitation.

Analysis: The question was answered in the light of the proviso inserted to section 142(1)(i) with retrospective effect from 1-4-1990, which removed the limitation objection raised against the notice.

Conclusion: The notice was held not to be barred by limitation, and the question was answered in the negative, in favour of the Revenue and against the assessee.

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