2006 (9) TMI 156

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....icer did not issue any notice proposing the assessment of escaped income under section 35 of the AIT Act, 1950 until it was repealed and substituted by the AIT Act, 1991. Notice for the first time was issued purportedly under section 41(1) of the new Act on August 9, 1996, against which the assessee filed the return. Even though objection was raised against the completion of assessment beyond time limit, the Assessing Officer overruled the same on the ground that 10 years time is available to him to complete assessment of escaped income under section 41(1) of the new AIT Act. If limitation under section 41(1) is available in this case, then of course the assessment is valid. On the other hand, if the limitation under section 35 of the old A....

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....of the said Act or any right, title, obligation or liability already acquired, accrued or incurred thereunder, and subject thereto, anything done or any action taken, including any appointment, notification, notice, order, rule, form or regulation, certificate, licence or permit in the exercise of any power conferred by or under the said Act, shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act were in force on the date on which such thing was done or action was taken and all arrears of tax and other amounts due at the commencement of this Act may be recovered, as if they had accrued under this Act and any reference in the said Act to an officer, authority, Tribunal or court....

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.... be continued and finally decided or determined under the provisions of that Act (5) Any arrears of tax or other amount pending and any recovery proceedings initiated or continued shall be continued as if the levy, collection and recovery are made or is continuing under the provisions of this Act and provisions of this Act relating to penalty and interest shall apply to such arrears of tax, or other amount which are in arrears at the commencement of this Act." It is obvious from the proviso to sub-section (1) of the above section that any right, title, obligation or liability already acquired, accrued or incurred under the old Act will remain unaffected even after repeal. Similarly any action taken including any notice, order, rule, or c....