Extended limitation for escaped assessment requires concealment or inaccurate particulars, not mere failure to file a return.

The extended eight-year limitation for escaped assessment applied only where the assessee had concealed particulars of income or deliberately furnished inaccurate particulars under section 38(1)(c). A complete failure to file a return, even after notice, was treated as non-furnishing of the return under section 38(1)(a), not as concealment or inaccurate particulars. On that basis, the longer limitation period under section 44(2) could not be invoked, and the issue was answered against the Revenue and in favour of the assessee.

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Issues: Whether a case where no return was filed at all falls within concealment of income or deliberate furnishing of inaccurate particulars so as to attract the extended eight-year period of limitation for escaped assessment.

Analysis: The extended period under section 44(2) was available only where section 38(1)(c) applied, namely where the assessee had concealed particulars of income or deliberately furnished inaccurate particulars. On the facts, the assessee had not filed any return for the relevant years despite notice under section 27(1). Such omission was treated as a failure to furnish the return, which falls within section 38(1)(a), and not as concealment or deliberate furnishing of inaccurate particulars under section 38(1)(c). The longer period of eight years therefore could not be invoked.

Conclusion: The extended eight-year limitation did not apply, and the first question was answered against the Revenue and in favour of the assessee.

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