41 ITR 142 (Mad) (paras 38, 61) Hari Iron Trading Co. v. CIT

SMT PUNEET KAUR DHUPIA,KOLKATA vs. ACIT, CIR-35, KOLKATA, KOLKATA

In the result, the appeal of the Assessee is allowed on the issue of order of assessment being held to be invalid for want of service of notice u/s

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] Assessment Year : 2005-06

…r. Osmani. However, it is a well-settled principle of law that a provision under a taxing statute should not be so construed as to affect the finality of a tax assessment or to open up a tax liability which had become barred (see ITO v. S.K. Habibullah [1962] 44 ITR 809). The question therefore is as to whether the tax liability of the petitioner for the assessment year 1990-91 had become barred or final and could not be opened by the Assessing Officer under Section 143(2) of the Income-tax Act, 1961. The proviso, as it stood prior to its amendment on October 1, 1991, quoted above would show that no notice under…