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TMI Blog2017 (9) TMI 1356X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal giving rise to common questions of law, we are taking up all the three of them together. The order of the Income Tax Appellate Tribunal dated 26.08.2005 has been impugned in all the three appeals. The Department came to know that the assessee had constructed a residential house, 7 Bank House, near Civil Court, Agra, which was completed in the financial year 1993-94. The Assessing Officer referred the matter to the Departmental Valuation Cell. The year-wise break up of the investment declared by the assessee in the construction of said house and the amount estimated by the valuer was as under :- Financial year Declared by the assessee Estimated by the AVO 1992-93 Rs.1,81,231/- Rs.1,72,800/- 1993-94 Rs.1,63,200/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls. On the submissions of the parties, only the following two substantial questions of law arise for consideration:- "(i) Whether the notice issued under Section 148 of the Act was validly served upon the assessee ? (ii) Whether the notice issued under Section 148 of the Act on 26.03.2001 was within time in respect of the above assessment year ?" There is no dispute to the fact that the notice under Section 148 of the Act in respect of all the three years was issued on 26.03.2001. The notice was sent to the assessee by speed post and the ITO took care to serve the notice personally as well. The notice sent for personal service was undoubtedly served on 29.03.2001 upon Ms. Priyanka, the assessee's minor daughter. Section 148 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had called for the report from the Assessing Officer regarding the service of the notice issued under Section 148 of the Act. The Assessing Officer vide his letter dated 14.08.2002 has replied and has stated "in this connection, it is submitted that on the perusal of the records, it is noted that the notices under Section 148 of the Act for the assessment years 1992-93, 1993-94 and 1994-95 dated 26.03.2001 issued in the name of the assessee Smt. Gayatri Devi wife of Sri Hari Shankar Mishra, Trans Yamuna Colony, Agra, were sent through speed post on 26.03.2001 vide postal receipt EE000092069 from the Post Office Sanjay Place, Agra,.............." The CIT (Appeals) after examination of the entire material and on consideration of the above re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the end of the relevant assessment year for issuing notice under Section 148 of the Act provided the income chargeable to tax escaping assessment amounts to or is likely to amount one lakh rupees or more for that year. In the event, the income chargeable to tax escaping assessment is of a higher amount, the period of limitation is four years and is extendable to 16 years. However, we are not concerned with the above limitation, which has been amended and provided by the Finance Act, 2001, inasmuch as in the case at hand, the notice was issued on 26.03.2001 prior to its enforcement and at that time, the unamended provisions of Section 149 of the Act were in force. The unamended provisions of Section 149 of the Act, which were in exi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year." Since, there was no assessment under sub-section 3 of Section 143 or Section 147, Clause (a) of unamended Section 149 would not be attracted and therefore, the limitation in the present case would be governed by sub-clause (b) of unamended Section 149 of the Act. It means the limitation for issuing the notice under Section 148 of the Act would be four years from the end of the relevant assessment year; four years but not more than 7 years from the end of the relevant assessment year, if the income chargeable to tax escaping assessment is Rs. 25,000/- or more for that year; 7 years but not more than 10 years from the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of the relevant years, which in the above cases would be 31st March, 2000 and 31st March, 2001. Similarly, in respect of the assessment year 1994-95 as the income chargeable to tax escaping assessment happens to be Rs. 55,440/-, the limitation for giving notice under Section 148 of the Act would be 10 years from the end of the relevant assessment year i.e. 31st March, 2005. Admittedly, the notice under Section 148 of the Act for all the three years was issued on 26.03.2001. Therefore, the notice was beyond time in so far as the assessment year 1992-93 is concerned but it is within limitation for the assessment year 1993-94 and 1994-95. Accordingly, the question no.2 is partly answered in favour of the assessee and it is held that the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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