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2016 (8) TMI 513 - HC - Income TaxValidity of notice issued under Section 10 of the Interest Act, 1974 - Held that:- The notice issued upon the petitioner is bad in law; inasmuch as, the petitioner had also addressed a letter dated 28/11/1995 to the respondent informing that since the petitioner is not a credit institution, it is not liable to interest tax. Reliance placed upon a decision in case of Khurana Engineering Ltd. (2013 (2) TMI 128 - GUJARAT HIGH COURT ) is also relevant for this purpose because as held therein after the date of amalgamation of the company, the transferor-company is no more in existence on the date of issuance of notice and therefore the said notice issued upon the said company held to be invalid. So far as the argument of the petitioner with regard to the period of limitation of issuance of notice is concerned, the said notice was issued after a period of ten years preceding the letter dated 28/11/1995 issued by the petitioner informing the respondent that it is not a credit institution whereupon only Section 5 of the said Act applies and therefore petitioner did not file the return. Thus, for the period of ten years nothing was turned up and suddenly the notice was issued, which in the opinion of this Court is bad in law. The act of reopening of notice is not within the period of limitation. The petitions deserve to be allowed and the same are allowed. The impugned notice dated 09/03/2005 (ExhibitB to the petition) issued under Section 10 of the Interest Act, 1974 by the respondent is hereby quashed and set aside. Rule is made absolute.
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