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2017 (1) TMI 1101 - HC - Income TaxValidity of reopening of assessment - period of limitation - Held that:- So far as the petitioner’s claim with respect to the notice being time barred are concerned, there is really no answer. The notice was indefensible when looked at from any angle. The notice was indefensible when looked at from any angle. The period of limitation prescribed by Section 147 (1) in respect of the time within which notice can be issued is absolute and does not call for any exception. Having regard to this incurable nature of the provision, the notice for assessment years 1994-95 and 1995-96 both dated 27.11.2002 have to be quashed. So far as the other two years are concerned, it is a fact that the assessment was completed in respect of assessment years 1996-97 on 24.03.1999, i.e., before the block assessment was completed. For the other years, i.e., assessment years 1997-98 it was completed on 22.03.2000 which is after the completion of the block assessment. However, in both cases, the regular assessments were completed after the search and seizure proceedings took place on 07.08.1997. If in fact the search and seizure proceedings alerted the Revenue as to the possibility of the assessee having practiced deceit as is being alleged now, there was nothing which prevented it from carrying out proper investigation and enquiry during the regular assessments which were completed but after the search. Having failed to do so, it cannot now merely at the instance of the ITAT through stray and casual observations seek to revisit the same issues as it were. There is no dispute that apart from the ITAT’s observations there was in fact no tangible or objective material within the meaning as understood for the purposes of Section 147/148 of the Act which could have validly triggered the reassessment notices for these years. Consequently, the reassessment notices for assessment years 1996-97 and 1997-98 too are invalid. - Decided in favour of assessee
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