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TMI Blog2016 (10) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioners. The entire arrears of salary was deposited in the Provident Fund and the petitioners claimed exemption from deduction under Section 88 of the Act. Though initially orders were passed granting benefits to the petitioners, later the assessment was reopened by issuance of notice under Section 148 r/w. Section 147 of the Act and it was held that the petitioners will be entitled to get exemption only for that particular year and cannot claim benefits for those years for which arrears of salary had been spread over. 3. The main contention urged by the petitioners is that in respect of similarly situated persons, the appellate authority of the Income Tax Department as well as this Court had taken a view that the assessment cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posited in the PF account, is not entitled for full exemption whereas exemption will be available for the arrears of salary received in respect of the particular year for which the assessment is being made. 5. Having regard to the aforesaid arguments raised on either side, I am of the view that as far as the petitioners case is concerned, it is a case where assessment has been reopened as provided under Section 147 and 148 of the Act even before a decision had been taken in the appeal. Therefore the judgment in Writ Appeal No.726/2007 and connected cases has no application to the present case. 6. The the next question is whether the petitioners are entitled to challenge the assessment orders on the ground that the petitioners are entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment for any assessment year, it is well within the powers of the Department to issue notice under Section 148 within the specified time. Insofar as the petitioners are concerned, notices had been issued within the specified time on the basis that there is reason to believe that the tax has escaped assessment. Under such circumstances, there is no jurisdictional error on the part of the Department in issuing notice under Section 147 r/w. Section 148 of the Act. 9. The next question is whether the petitioners are entitled for any exemption as provided under Section 88 of the Act for the entire amount of arrears of salary received by them and deposited with the Provident Fund. Apparently, the petitioners could have preferred an appeal ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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