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2016 (10) TMI 395 - HC - Income TaxReopening of assessment - Held that:- In an instance where the Department comes to a conclusion that the tax has escaped assessment for any assessment year, it is well within the powers of the Department to issue notice under Section 148 within the specified time. Insofar as the petitioners are concerned, notices had been issued within the specified time on the basis that there is reason to believe that the tax has escaped assessment. Under such circumstances, there is no jurisdictional error on the part of the Department in issuing notice under Section 147 r/w. Section 148 of the Act. Entitlement for any exemption as provided under Section 88 for the entire amount of arrears of salary received and deposited with the Provident Fund - Held that:- Apparently, the petitioners could have preferred an appeal against the impugned orders. But they have not chosen to do so and had approached this Court. The law is now well settled as held by this Court in Kerala Electricity Officers Federation and Others v. Central Board of Direct Taxes and Others [2005 (7) TMI 87 - KERALA High Court ], which squarely applies to the facts of the present case in which this Court after considering the question of exemption under Section 88 of the Act in similar situations held that the amount received as arrears of salary, even if deposited in the PF account, is not entitled for full exemption whereas exemption will be available for the arrears of salary received in respect of the particular year for which the assessment is being made.
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