9911796707
TMI Blog1992 (3) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... omplete returns have not been filed and the petitioners have not been assessed under section 10(1)(b) of the Act, i.e., by making a best judgment assessment for the escaped turnover then it will be treated to be a case of escaped assessment and therefore, section 12 of the Act will be applicable and when section 12 is applicable, there is a period of limitation prescribed and, i.e., 8 years and therefore, according to him, the show cause notice to appear as regards proposed assessment for the years 196667 to 1970-71 have become time-barred. The show cause notice regards the assessment years 1971-72 to 1975-76, which were pending on April 7, 1979 when section 10B was introduced in the Act which provided that all pending assessment should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted way back on July 22, 1981 and today the writ petition has been finally argued before me and therefore, at this stage, the petitioner cannot be thrown out of the court on this technical plea that he should have first approached the assessing authority. In this respect I place a reliance on a decision of the Supreme Court rendered in L. Hirday Narain v. Income-tax Officer, reported in [1970] 78 ITR 26; AIR 1971 (SC) 33 wherein their Lordships of the Supreme Court have observed that the petitioner who has filed a writ petition without availing the statutory remedy and that writ petition was entertained by the High Court and High Court gave it hearing on merits, the petition could not be rejected on the ground that statutory remedy was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 10(1)(b) of Act prior to April 7, 1979 and therefore, the limitation of eight years prescribed by section 12 of the Act will be applicable in such cases and therefore, following this dictum of the learned Judges of the Division Bench, I am firmly of the view that the proposed assessment of the years 1966-67 to 1970-71 have become time-barred as per section 12(2) of the Act and, therefore, to that extent the petitioner s writ petition must succeed and the notice annexure 1 given in respect of these years is quashed. However, the assessing authority will be free to assess the petitioners for escaped assessment of tax pertaining to the years 1971-72 to 1975-76 under section 10(1)(b) of the Act. The writ petition stands disposed of accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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