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2010 (9) TMI 380 - HC - Income TaxAssessment of escaped income - The petitioner's land was acquired by the Meerut Development Authority (the MDA) under the Land Acquisition Act in the year 1987 - The income arising out capital gains by compulsory acquisition was also never disclosed to the Income Tax Department by the petitioner - The counsel for the petitioner submitted that: The capital gain was to be calculated in accordance with sub-section 5 of section 45 (see below)2 {section 45(5)} of the Act; Under section 45(5) (a), the capital gain was to be calculated with reference to the compensation received at the first instance Notice barred by time - In case the income escapes assessment, then the limitation for issuing notice, is provided in the first proviso to section 147 and section 150 - In this case, no earlier assessment was made and as such the first proviso to section 147 has no application - There is material to believe that income had escaped assessment and the notices are not invalid on this account - The notice is valid - the writ petition No. 54 (Tax) of 2004 is dismissed and Writ Petition No. 991 (Tax) of 2007 and 994 (Tax) of 2007 are allowed
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