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2009 (7) TMI 711 - BOMBAY HIGH COURTReassessment- Limitation- Whether the assessment proceedings are ab initio void being barred by the limitation prescribed under the Income-tax Act and the said proceedings having been commenced after the limitation period are non-est and ab initio void ? Whether the provisions of section 184(5) of the Income-tax Act, 1961 could be invoked by the Assessing Officer in the absence of proceeding under section 144 being initiated by the authorities ? Held that- (i) the income escaping assessment was calculated at Rs. 1,61,144 i.e. in excess of Rs. 50,000. The time limit therefore was ten years as per sub-clause (iii) of section 149(b)then in force. The notice of reassessment was not barred by limitation. (ii) the total income declared in the return was Rs. 4,060 but it was by ignoring the provisions of section 184. The allowance was corrected and then the interest had been calculated and charged in the assessment order. Therefore, there was no error in the levy as it was previous notice to the assessee.
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