Reassessment notices for earlier years were saved by the limitation exception for giving effect to appellate findings.

Notices issued for reassessment of earlier assessment years were treated as valid because the saving and transitory scheme extended the reassessment machinery to pre-1962 years. Ordinary limitation under section 149 was displaced where reassessment was required to give effect to a finding or direction in appellate, reference, or revision proceedings, and the phrase "under this Act" in section 150(1) was read mutatis mutandis to cover proceedings under the repealed Act. The notices were therefore not barred by limitation and could be issued at any time to implement appellate findings or directions.

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Issues: Whether notices issued under section 148 of the Income-tax Act, 1961, for assessment years 1953-54 to 1963-64 were barred by limitation, or were saved by section 150(1) read with section 297(2)(d)(ii) of the Income-tax Act, 1961.

Analysis: The notice period for reassessment is ordinarily governed by section 149, but section 150(1) permits notice at any time where reassessment is required to give effect to a finding or direction in appellate, reference, or revision proceedings. The assessment years 1953-54 to 1961-62 fell under the repealed 1922 Act, yet section 297(2)(d)(ii) expressly made section 148 available for escaped income and subjected it to sections 149 and 150. The expression "under this Act" in section 150(1) was read mutatis mutandis so as to include proceedings under the repealed Act for the purpose of reassessment. The court held that the provision was applicable to pre-1962 assessment years, and therefore the notices could be issued without any time bar.

Conclusion: The notices were not barred by limitation and were valid.

Final Conclusion: Reassessment notices issued to give effect to appellate findings could be issued for the earlier assessment years notwithstanding the ordinary limitation period.

Ratio Decidendi: Where a saving and transitory provision expressly applies the reassessment machinery to earlier assessment years, the expression "under this Act" in the special limitation exception is read mutatis mutandis to include proceedings under the repealed Act, enabling notice at any time to give effect to appellate findings or directions.

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