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2011 (1) TMI 178 - HC - Income TaxUnder section 148 - the amount of income escaping assessment is less than or is likely to amount to less than one lakh rupees, in no case notice can be issued beyond a period of four years from the end of the relevant assessment year - Thus, section 149 of the Act merely prescribes the maximum time-limit for issuance of notice under section 148 of the Act, based upon the amount involved - The said provision does not in any manner override the proviso to section 147 of the Act which lays down that no action shall be taken under section 147, after the expiry of four years from the end of the relevant assessment year unless the conditions stipulated thereunder are satisfied - The proviso to section 147 of the Act and sub-section (1) of section 149 operate in different fields and are independent from one another - Thus, in a case where the requirements of the proviso to section 147 of the Act are not satisfied, no notice under section 148 can be issued beyond a period of four years even if the amount of tax escaping assessment is more than or likely to be more than one lakh rupees, whereas, in a case where the amount of tax escaping assessment is not more than or not likely to be more than one lakh rupees, even if the requirements of the proviso to section 147 of the Act are satisfied, no notice can be issued beyond a period of four years - The time-limit of six years provided by the said section is the maximum time-limit for issuance of notice under section 148 of the Act, beyond which even if the requirements of the proviso to section 147 of the Act are fulfilled, no notice under section 148 can be issued. Held that: the notice for reassessment has been issued after the expiry for a period of four years from the end of the relevant assessment year and as noted earlier, there is no failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the assessment year under consideration - In the circumstances, the assumption of jurisdiction under section 147 of the Act by issuance of notice under section 148 of the Act is invalid and as such, cannot be sustained – Hence, the petition succeeds and is accordingly allowed
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