2000 (4) TMI 6

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.... of the Income-tax Act, 1961. The petitioner had filed the return of income for the assessment year 1993-94 on March 31, 1993. An assessment order under section 143(3) of the Income-tax Act, 1961, was issued. The claim towards expenses incurred on repairs/replacement was admitted in the said order. By the impugned notice, the petitioner was informed by the Joint Commissioner that he has reason ....

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....ith the time limit for the notice under section 148. Section 149(1) states that no notice under section 148 shall be issued if four years have elapsed from the end of the relevant assessment year unless the case falls under sub-clause (ii) or sub-clause (iii). Sub-clause (ii) states that no notice shall be issued under section 147 if four years but not more than seven years have elapsed, unless th....

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.... the merits, it could be seen that the income escaping the assessment as a result of failure to examine the account books produced by the assessee would be sufficient justification in making the reassessment. Explanation 2 to section 147 makes it clear that where assessment has been made but income chargeable to tax has been under-assessed or such income has been made the subject of excessive reli....

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....nt account or the account of excess duty paid and therefore there was a jurisdictional error. The learned judge did not go into Explanations 1 and 2 to section 147 of the Act where it is seen that the production of account books from which material evidence could with due diligence have been discovered by an Assessing Officer will not necessarily amount to disclosure and that under Explanation 2 w....