Law:

Section:

Section 148, read with section 147, of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 2001-02 - For relevant assessment year, assessee filed return on 31-10-2001 wherein she disclosed certain amount of capital gains arising from sale of shares - A notice was issued by assessing authority under section 143(2)/142(1) asking assessee to furnish details relating to bank account, purchase and sale of shares and certificate from stock brokers - Same were produced by assessee and, thereupon assessment order was passed - Subsequently, a notice under section 148 was issued on 11-5-2006 seeking to reopen assessment - Whether in view of fact that there was no failure on part of assessee to disclose fully and truly all material facts necessary for assessment in respect of share transactions, as per proviso to section 147, limitation available for initiation of reassessment proceedings was only four years - Held, yes - Whether, therefore, impugned notice issued after expiry of four years from end of relevant assessment year, was barred by limitation - Held, yes FACTS The assessee was regularly filing returns in the status of an individual. For the assessment year 2001-02, the assessee had filed the return on 31-10-2001 wherein she disclosed capital gain arising from the sale of 16,000 equity shares of 'V' Ltd. through 'J' Brokers. During the course of assessment proceedings, a notice was issued by the assessing authority under section 143(2)/142(1) asking the assessee to furnish the details relating to the bank account, purchase and sale of shares and certificate from the stock brokers. The same were produced by the assessee. On submission of those documents, the assessing authority issued a letter to 'J' Brokers and after getting the said transactions verified, the claim of the assessee was accepted. Subsequently, a search and seizure operation took place at the premises of 'J' Brokers on 24-11-2002 and statement of 'A', Director of the company was recorded. On the basis of the statement of 'A', the assessing authority recorded reasons and issued notice dated 11-5-2006 under section 148. The assessee filed instant writ…

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