TMI Blog2006 (11) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... the finding of the Tribunal referred to supra regarding the escaped income for assessment of income-tax. Therefore, the learned single judge committed an error in law by quashing the same, as the same is contrary to the finding recorded by the Income-tax Appellate Tribunal with regard to the escaped taxable income derived by the assessee, in respect of such cases section 150(1) of the Act is applicable which relevant provision of the Act has not been properly considered by the learned single judge by quashing the notice impugned in the writ petition, the legal submission made by learned counsel Mr. Ashok Kulkarni placing reliance upon section 150(2) of the Act in justification of the order of the learned single judge is misplaced for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing the escaped tax of the respondent is quashed with a direction not to proceed further in the matter. 2. The issue involved in the case pertains to Income-tax liability arising out of an agreement between the respondent and another. The dispute between them was resolved through arbitration. The amount payable to the respondent herein in terms of the award was sought to be taxed towards capital gains in the assessment year 1980-81. The matter reached the Income-tax Appellate Tribunal. The Tribunal noticed that the amount sought to be assessed was offered to tax for the assessment year 1976-77 and it was within the knowledge of the Assessing Officer while concluding the assessment during the said assessment year and therefore issuanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following decisions : CIT v. G. Viswanatham [1988] 172 ITR 401 (AP) ; Parveen Kumari v. CIT [1999] 237 ITR 339 (P H) ; and Smt. Savitri Rani Malik v. CIT [1990] 186 ITR 701 (Gauhati). 5. Learned counsel submitted that the learned single judge has rightly quashed the notice as the same is barred by limitation and therefore no interference is warranted and prayed for dismissal of the appeal. 6. We have examined the order under appeal with reference to the submissions made and the decisions relied upon. It is not in dispute that the income realised by the respondent under the agreement is not taxable or not assessable. It is also not the case of the assessee that it is not an escaped assessment. Section 147 of the Act provides f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin the knowledge of the appellant. On the basis of this finding of the Tribunal in its order regarding escaped income of the assessee, notice under section 148 of the Act was issued on November 17, 1998, which is quashed by the learned single judge. Section 149 of the Act prescribes the period of limitation within which notice under section 148 shall be issued to the assessee and it reads as under : 149. (1) No notice under section 148 shall be issued for the relevant assessment year (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) ; (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in section 149 and it states that notice may be issued at any time to give effect to any finding contained in any order passed by any authority in any proceeding under the Act. The notice issued to the assessee was pursuant to the finding of the Tribunal referred to supra regarding the escaped income for assessment of Income-tax. Therefore, the learned single judge committed an error in law by quashing the same, as the same is contrary to the finding recorded by the Income-tax Appellate Tribunal with regard to the escaped taxable income derived by the assessee, in respect of such cases section 150(1) of the Act is applicable which relevant provision of the Act has not been properly considered by the learned single judge by qua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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