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Judgment
After hearing learned Counsel for the parties, the following substantial question of law arises for our consideration:
Whether the notice issued u/s 142(1) of the Income Tax Act, 1961 and served on the assessed beyond a period of one year from the end of the relevant previous year is barred by limitation?
Filing of paper book is dispensed with.
Learned Counsel for the parties submit that in view of the insertion of a proviso to Section 142(1)(i) of the Act with retrospective effect from 1-4- 1990, the substantial question of law is required to be answered in the negative, in favor of the revenue and against the assessed. We do so accordingly.
It is also brought to our notice that the Income Tax Appellate Tribunal had not gone into merits of the controversy before it since the notice was held to be barred by limitation. Since it has now been held that the notice u/s 142(1) of the Act is not barred by limitation, the matter is required to be heard by the Tribunal on merits.
The parties will appear before the Tribunal on 6-8-2007 for directions so that the matter can be disposed of on merits by the Tribunal on a convenient date.
The reference is disposed of accordingly.