Assistant Commissioner Of Income Tax vs Heera Lal on 20 October, 2006
The learned Authorised Representative submitted that under Section 149(1)(b), the prescribed limitation is 4 years and in the case of income exceeding Rs. 1,00.000, the limitation is 6 years. A notice under Section 148 was served on 26th March, 2002. Accordingly, the expiry of one year from the end of the relevant financial year was 31st March, 2003. The assessment, as per plain and simple reading of Section 153(2) should have been framed on or before 31st March, 2003, whereas the assessment is dt. 28th Aug., 2003. Even if the very action under Section 142(2A) is treated as valid, the necessary implication thereof shall be that the impugned assessment stands time-barred as in that case the assessment was to be completed latest by 29th June, 2003 after exclusion under Expln. 1(iii).