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2016 (12) TMI 1287 - PUNJAB AND HARYANA HIGH COURTValidity of reopening of assessment - Held that:- Explanation 3 was introduced by Finance (No. 2) Act, 2009 with retrospective effect from 01.04.1989. Explanation 3 only provides that the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and which comes to his notice subsequently in the course of the proceedings, notwithstanding that the reasons had not been included in the reasons recorded under Section 148(2). Even if the reasons recorded do not refer to a particular issue, the Assessing Officer would be entitled to assess the income or reassess the computation of the income with regard thereto if the same comes to his notice during the course of the proceedings for reassessment. That, however, posits a valid notice in the first place for it is a valid notice under Section 148 that gives the Assessing Officer the jurisdiction to adopt proceedings under Sections 147 and 148. In these circumstances, it is held that the notice under Section 148 was illegal and issued without jurisdiction. The reassessment proceedings, therefore, are invalid. - Decided in favour of assessee
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