TMI Blog2006 (9) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... the AIT Act, 1950 until it was repealed and substituted by the AIT Act, 1991. Notice for the first time was issued purportedly under section 41(1) of the new Act on August 9, 1996, against which the assessee filed the return. Even though objection was raised against the completion of assessment beyond time limit, the Assessing Officer overruled the same on the ground that 10 years time is available to him to complete assessment of escaped income under section 41(1) of the new AIT Act. If limitation under section 41(1) is available in this case, then of course the assessment is valid. On the other hand, if the limitation under section 35 of the old Act is applicable, then of course the assessment or even the proposal for the assessment are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred thereunder, and subject thereto, anything done or any action taken, including any appointment, notification, notice, order, rule, form or regulation, certificate, licence or permit in the exercise of any power conferred by or under the said Act, shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act were in force on the date on which such thing was done or action was taken and all arrears of tax and other amounts due at the commencement of this Act may be recovered, as if they had accrued under this Act and any reference in the said Act to an officer, authority, Tribunal or court shall be construed as reference to the corresponding officer, authority, Tribunal or court ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax or other amount pending and any recovery proceedings initiated or continued shall be continued as if the levy, collection and recovery are made or is continuing under the provisions of this Act and provisions of this Act relating to penalty and interest shall apply to such arrears of tax, or other amount which are in arrears at the commencement of this Act." It is obvious from the proviso to sub-section (1) of the above section that any right, title, obligation or liability already acquired, accrued or incurred under the old Act will remain unaffected even after repeal. Similarly any action taken including any notice, order, rule, or certificate issued under the old Act shall be deemed to have been done or taken in the exercise of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtue of its operation, the limitation under the old Act applies. Since the escaped assessment in the petitioner's case was not completed before March 31, 1992, in terms of section 35 of the old Act, the assessment is time-barred and consequently illegal and unenforceable. Even though the Special Government Pleader contended that by virtue of the proviso to section 99(1) of the 1991 Act the provisions of the said Act apply for the assessment completed under the old Act, we do not find any such provision in the said proviso which as already stated, only validates what is done under the old Act. We, therefore, uphold the order of the Tribunal holding that the petitioner's assessment for 1986-87 is time barred, but for different reasons stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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