2008 (9) TMI 151 - HC - Income Tax

Assessment - limitation - notices issued to the assessee u/s 148 on the ground that there would be no period of limitation since the matter fell within the ambit of section 150(1) and the consequent proceedings were made to frame assessment held that grant of probate by the Additional District Judge, Rohtak, had no consequence/effect to the assessment proceedings and would not extend the period of limitation assessment framed was barred by limitation - Revenue s appeal is dismissed

Summary

Issues:
1. Interpretation of section 150(1) of the Income-tax Act, 1961 regarding the period of limitation for assessments.
2. Validity of assessments for the years 1993-94 to 1997-98 based on the initiation of proceedings under section 148 read with section 150(1).

Issue 1: Interpretation of section 150(1) of the Income-tax Act, 1961

The judgment dealt with an appeal under section 260A of the Income-tax Act, 1961, against an order passed by the Income-tax Appellate Tribunal regarding the assessment year 1993-94. The substantial questions of law proposed included whether the findings of the Tribunal were perverse regarding the absence of findings in the order passed by the Additional District Judge, Rohtak. The appeal arose from notices issued to the assessee under section 148 of the Act for the assessment years 1993-94 to 1997-98, claiming no limitation period due to section 150(1) of the Act.

Issue 2: Validity of assessments for the years 1993-94 to 1997-98

The Commissioner (Appeals) determined that the effective date for invoking section 150(1) was the date of probate of the mother of the assessee in her favor, which was November 30, 2000. The Commissioner held that the notice for the year 1993-94 was time-barred but that subsequent notices and assessments were valid. The Tribunal dismissed the second appeal, emphasizing that the absence of findings or directions by the judge in the order required regulation of notice issuance under section 149 of the Income-tax Act. The Tribunal correctly relied on the Supreme Court decision in ITO v. Murlidhar Bhagwan Das to conclude that the grant of probate did not extend the limitation under section 150 of the Act.

In conclusion, the judgment affirmed the Tribunal's decision, stating that no substantial question of law arose. The case law cited by the appellant was deemed inapplicable, as the Tribunal's interpretation aligned with legal precedents. Therefore, the appeal was dismissed, upholding the validity of the assessments for the years 1993-94 to 1997-98 based on the correct application of section 150(1) of the Income-tax Act, 1961.