9911796707
TMI Blog2000 (2) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... n 148 was issued before 1-4-1989. 2. That it is prayed that the order of the Ld. CIT(A) be set aside and that of the Assessing Officer be restored." 2. The Assessing Officer passed under section 143(3)/147 after serving notice under section 148 on the assessee on 30-3-1986. In response to the notice, the assessee-firm filed return on 24-12-1990. The assessee took plea in a letter of explanation before the Assessing Officer that the proceedings have become barred by limitation. The Assessing Officer observed that the proceedings are not barred by limitation because notice under section 148 was served upon the assessee before 31-3-1988. The Assessing Officer observed that the Law was different before 1-4-1989 and there was distinction bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act, 1961 was served on or before 31-3-1987, the reassessment has to be made within a period of two years from the end of the financial year in which the said notice was served. In the present case the notice under section 148 of the Act was duly served on the appellant on 30-3-1988. Hence the valid reassessment could only be made on or before 31-3-1990. In the present case there assessment was made vide order dated 25-2-1991 which is beyond the period of limitation i.e., 31-3-1990. Hence the plea of the appellant that the assessment framed is barred by limitation succeeds. The assessment so framed is cancelled being barred by time limitation. It is not considered necessary to give finding in respect of the other two grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection, after the expiry of four years from the end of the assessment year in which the notice under section 148 was served; (b) where the assessment, reassessment or recomputation is to be made under clause (b) of that section, after--- (i) the expiry of four years from the end of the assessment year in which the income was first assessable, or (ii) the expiry of one year from the date of service of the notice under section 148, whichever is latter." The Notice under section 148 was issued on 30-3-1988. The issue to be decided is whether the provisions relating to limitation prior to 1-4-1989 will be attracted or the provisions relating to the limitation after 1-4-1989 is to be attracted. The CBDT issued a Circular on the issue vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould tide over the difficulties during the transitional period, while switching over the earlier 4 years limited to the new 2 years limit. In view of the amended provisions even the service made earlier to 1-4-1989 cannot permit the Assessing Officer to completed assessment after 31-3-1989. The provisions of section 153(2) of Income-tax Act, 1961. No order of assessment, reassessment or recomputation shall be made under section 147 after the expiry of two years from the end of the financial year in which notice under section 148 was serviced. Provided that where the notice under section 148 was served on or before 31st day of March, 1987, such assessment, re-assessment or recomputation may be made at any time upto 31st day of March 1990 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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