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2014 (11) TMI 88 - AT - Income TaxValidity of reopening of assessment u/s 148 Notice issued within prescribed limit - Held that:- On receiving of an information the AO had proceeded u/s.148 of the Act by issuing a notice dated 6.12.2006 relevant for A.Y. 2004-05 - The time limit prescribed for issuance of notice u/s.149 is four years from the end of the relevant assessment year and if four years have elapsed, then not more than six years from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to ₹ 1 lac or more - Since the notice was within the prescribed limit, the reopening of assessment is valid. Correct year of assessment of the capital gain Held that:- Following the decision in Kalyan Ala Barot Versus. MH Rathod [2010 (6) TMI 282 - Gujarat High Court] - the AO had issued notice u/s 148 for assessing the income which was excluded from the total income of the petitioner by the AY 1984-85, to assess such income for the AY 1983-84 - the case fell within the ambit of the provisions of section 150 as well as section 153(3)(ii) read with Explanation 2 to section 153 of the Act thus, the AO is directed to compute the capital gain in AY 2002-03 as per law after issuing a notice of hearing prescribed under the provisions of the Act - a co-joint reading with section 153(3) a reassessment may be compelted at any time where the reassessment is made in consequence or to give effect to any finding/direction of an order passed u/s 254(1). Application of section 50C Held that:- While computing the capital gain for AY 2002-03, the AO is directed to take into account the sale consideration as noted in the sale-deed - The AO is not expected to take the shelter of the provisions of section 50C of IT Act for AY 2002-03 - the provisions of section 50C have come with effect from 1.4.2003 the matter is remitted back to the AO with directions Decided partly in favour of assessee.
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