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2010 (9) TMI 391 - HC - Income TaxReassessment notice limitation Effect of section 147 and 149 Held that - Both sections 147 and 149 of the Act are to be read together. The proviso to section 147 of the Act specifically provides the limitation for taking action under the said section within four years and only in the exceptional case mentioned therein, namely, where there is failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment for the assessment year, the proceeding can be initiated beyond the period of four years. Department did not deny the followings in its counter affidavit - (i)That the petitioner had disclosed the matter fully and truly at the time of regular assessment proceedings. It had also furnished the details regarding closing stock specifically asserting that no provision of excise duty/liability in respect of goods manufactured and held in stock as on March 31, 1995 was made and valuation of the closing stock of both the units were furnished. (ii) That the petitioner also furnished details of interest received in case of U. P. Straw Board and Agro Product Ltd., M/s. V. L. S. Finance Ltd. and Kotak Mahindra Finance Ltd. and the list of interest charged showing the basis of charging interest, whereas at the time of proceeding it imposed interest on year end basis. (iii) That the third objection was also dealt with as per schedule 8 of the balance-sheet, which was furnished by the assessing authority. Thus, the petitioner had disclosed the matter fully and truly and the material facts necessary for assessment in course of the regular assessment proceeding under section 143(3) of the Income-tax Act. Notice for assessment year 1995-96 in March 2002 Notice barred by limitation
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