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[2007] 294 ITR 532 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax v. Mrs. C. Malathy P.D. DINAKARAN AND MRS. CHITRA VENKATARAMAN, JJ. T.C.(APPEAL) NO. 55 OF 2004 FEBRUARY 26, 2007 Section 147 of the Income-tax Act, 1961 - Income escaping assessment â–  In view of provisos to section 148, inserted by Finance Act, 2006 with retrospective effect from 1-10-1991, where a return had been filed pursuant to notice under section 148 on 16-7-1998 and notice under section 143(2) was issued 16-10-1999, such notice was not barred by limitation even though it was issued after expiry of twelve months after date of filing of return, as specified in section 143(2) [Assessment year 1996-97] A perusal of the retrospective amendment introduced in the provisos to section 148, inserted by Finance Act, 2006 with effect from 1-10-1991, along with the Explanation inserted, shows that the requirement of notice under section 143(2) within the time limit specified is mandatory in all cases in respect of returns furnished on or after 1-10-2005. However, with reference to returns filed from 1-10-1991, to 30-9-2005, the plea of limitation in respect of returns filed pursuant to the notice under section 148 will not invalidate the assessment proceedings and such notice would be deemed to be a valid notice. In view of the aforesaid retrospective amendment, where a return had been filed pursuant to notice under section 148 on 16-7-1998 and notice under section 143(2) was issued on 16-10-1999, such notice was not barred by limitation even though it was issued after expiry of twelve months after the date of filing the return as specified in section 143(2). JUDGMENT Mrs. Chitra Venkataraman, J.-The appeal by the Revenue raises the following question of law viz. : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the time-limit prescribed for issue of a notice under section 143(2) in respect of a return filed under section 139 of the Income-tax Act or a return filed in pursuance of a notice under section 142(1) of the Act will apply to a return filed in response to a notice under section 148 of the Act ?" The appeal…

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