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2012 (6) TMI 37 - HC - Income TaxLaw of Limitation - validity of notice issued u/s 147 purporting re-opening of assessment after the expiry of nine years from the end of relevant AY - assessment for AY 1998-99 purported to be reopened - applicability of Finance Act 2001 substituting time limit u/s 149 - Revenue contended that Section 149 before its substitution would apply prescribing time limit of 10 years - Held that:- Law of limitation, being procedural law has to be applied to the proceedings on the date of institution/filing. It is a settled position that liability to tax as a levy is normally determined as per statute as it exists on the first day of the AY. In present case, issue is of procedure i.e. the time period in which the assessment or re-assessment proceedings can be initiated, on which it is held that time period/limitation period prescribed on the date of issue of notice will apply. Therefore, where Finance Act, 2001 reduced limitation period u/s 149 from 10 years to 6 years w.e.f. 1-6-2001, all notices issued on or after 1-6-2001 should conform to the revised reduced time limit of 6 years - Decided in favor of assessee.
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