TMI Blog1980 (7) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... tal in come of Rs. 45,769 but the income was reduced in appeal to Rs. 31,288. According to the ITO, later on, it came to light that by reason of omission and failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, income chargeable to tax had escaped assessment which should have been assessed in the hands of the assessee for the year under appeal. He, therefore, issued noticed under s. 148 on 29th March, 1966. This notice was served upon the assessee on 5th April, 1966. The assessee field a return on 2nd July, 1966 showing income of Rs. 31,188. Thereafter, the ITO proceeded with the process of assessment and computed the total income of Rs. 63,918 which include a sum of Rs. 32,630 being c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Courts as pointed out by the AAC. As such there is no need for an interference in the order of the AAC at the instance of the Revenue. 5. We have heard the parties. In our opinion the AAC has correctly axpounded the provisions of law as contained in the following paras of his order: "3. Before the valid assessment or reassessment can be made in terms of s. 147, the notice containing all or any of the requirements which may be included in a notice under sub-s. (2) of s. 139 is required to be served on an assessee according to the provisions of sub-s.(1) of s 148. s. 149(1) requires that in cases falling under cl. (a) of s. 147 the notice under s. 148 has to be issued within 8 years from the end of the relevant asst. yr. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued used in s. 149(1) has to be constructed as 'served'. In the present case, notice under s. 148 was served after the expiry of limitations provided in sub-s.(1) of s. 149. The notice is illegal and, therefore, in-operative. The assessment framed in pursuance of this notice is illegal and is, therefore, annulled". Since we are in agreement with the AAC, we do not think it necessary to reiterate the position of law explained by him. His order annulling the assessment is in accordance with law and needs no interference at our hands. 6. In deciding the matter as above, we have taken into consideration the authority cited by revenue. The authority cited is applicable as a binding force within the jurisdiction of the Hon'ble High Court. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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