1994 (11) TMI 121

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.... J.----The following question of law has been referred by the Income-tax Appellate Tribunal under section 256(1) of the Income tax Act, 1961, for the opinion of this court at the instance of the Revenue : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in setting aside the order of the Appellate Assistant Commissioner dated Januar....

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....he amount of income of Rs. 30,000 which was assessed earlier in the original assessment. The order of reassessment was challenged before the Appellate Assistant Commissioner on the ground, inter alia, that though the notice under section 148 was issued within eight years from the end of the relevant assessment year, it was served after the expiry of the period of eight years and hence the proceedi....

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....g for the Revenue, submits that section 149 simply lays down the time-limit for issue of notice under section 148. Once a notice is issued within the period specified therein, the initiation of proceedings would be valid and service of notice beyond the period of limitation would not invalidate the same. In support of this contention, reliance is placed on the decision of the Supreme Court in R. K....

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....nt of issue of notice is satisfied when a notice is actually issued. Section 148(1) deals with the making of the reassessment and mandates that reassessment shall not be made until there has been service. Under the Income-tax Act, 1961, service is not a condition precedent to conferment of jurisdiction on the Income-tax Officer to deal with the matter but it is a condition precedent to the making ....