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2011 (7) TMI 586 - HC - Income TaxValidity of assessment framed after issuance of second notice u/s 148, while proceedings initiated under first notice was not concluded - jurisdiction of AO to issue second notice u/s 148 - whether the reasons recorded for the issuance of such a notice has a nexus to the material on record - period of limitation - Held that:- In present case, assessee failed to file return in respect of AY 91-92 within time prescribed and also mere declaration of income was made after conduct of search. In pursuance of notice issued u/s 148 on 14.12.92, assessee filed return on 22.12.92. Hence, in the absence of any return being filed, notice u/s 148 dated 14/12/1992 was rightly issued. Assessing officer after considering the return filed on 22.12.92, found that there was escapement of income, and issued notice dated 24/11/1994 which was also responded to by the assessee only on 20/10/1995 by filing a revised return. Therefore the notice dated 24/11/1994 is infact not a "second notice", u/s 148 during the pendency of an earlier notice u/s 148 and is validly issued. Further, notice dated 24/12/1994 was issued after considering the return filed by the appellant on 22/12/1992, therefore, reasons recorded on 23.11.1994 in our view are sufficient to establish nexus with the material on record which have rational connection to the material coming to the notice of the AO and the formation of his opinion that there has been escapement of income. Assessing Officer concluded the assessment order on 27.3.1997 which is within the period of two years from the end of the AY having regard to the fact that the assessee had filed the revised return on 20.10.1995. Therefore, the assessment order dated 27.3.1997 is made within the prescribed period of limitation - Decided in favor of Revenue
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