https://www.taxtmi.com/caselaws?id=165819 The Bombay HC held that the Income-tax Officer could not validly invoke section 11(1) of the Business Profits Tax Act after the expiry of the four-year period reflected in section 14 for escaped profits. Construing the Act as a whole, the Court reasoned that the statute does not permit indefinite exposure to assessment and that a notice issued four years after the chargeable accounting period was not a reasonable exercise of power. Because the notice was invalid, the assessment made pursuant to it was also invalid and could not stand. The Court therefore upheld the setting aside of the business profits tax assessment. en-us Wed, 05 Sep 1956 00:00:00 +0530 Tue, 12 Aug 2014 17:29:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165819 The Bombay HC held that the Income-tax Officer could not validly invoke section 11(1) of the Business Profits Tax Act after the expiry of the four-year period reflected in section 14 for escaped profits. Construing the Act as a whole, the Court reasoned that the statute does not permit indefinite exposure to assessment and that a notice issued four years after the chargeable accounting period was not a reasonable exercise of power. Because the notice was invalid, the assessment made pursuant to it was also invalid and could not stand. The Court therefore upheld the setting aside of the business profits tax assessment. Case-Laws Income Tax Wed, 05 Sep 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165819