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2006 (11) TMI 147 - HC - Income TaxPetition to quash the notice issued u/s 148 - barred by limitation - Escaped assessment - provision of section 150 - income-tax liability arising out of an agreement - HELD THAT:- The provision of sec 150, begins with the words "notwithstanding anything contained in section 149" and it states that "notice may be issued at any time" to give effect to any finding contained in any order passed by any authority in any proceeding under the Act. The notice issued to the assessee was pursuant to the finding of the Tribunal referred to supra regarding the escaped income for assessment of income-tax. Therefore, the learned single judge committed an error in law by quashing the same, as the same is contrary to the finding recorded by the Income-tax Appellate Tribunal with regard to the escaped taxable income derived by the assessee, in respect of such cases section 150(1) of the Act is applicable which relevant provision of the Act has not been properly considered by the learned single judge by quashing the notice impugned in the writ petition, the legal submission made by learned counsel Mr. Ashok Kulkarni placing reliance upon section 150(2) of the Act in justification of the order of the learned single judge is misplaced for the reason that the above provision is not applicable to the case on hand is the case sought to be established by the Revenue, by refusal of the impugned notice prima facie at this stage the submissions of learned counsel for the Revenue is tenable and the same shall be accepted by us. In view of the decision in GKN Driveshafts (India) Ltd. v. ITO [2002 (11) TMI 7 - SUPREME COURT] clarification made by the apex court, the quashing of the notice impugned in the writ petition by the learned single judge is not justified. In view of the foregoing reasons the decisions relied upon by learned counsel for the assessee are of no assistance and in view of what has been stated above, they are not applicable to the facts of the case. In the result, the writ appeal is allowed. The order of the learned single judge is set aside. The assessee is at liberty to file a revised return. The Assessing Officer shall consider the same and pass appropriate order.
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