Report No. 12

155. Time-limit for notice.-

(1) The notice under section 154 [section regarding notice] may, subject to the provisions of sub-section (2) and of section 157 [section regarding sanction], be issued-

(a) in cases falling under clause (a) of section 152 [section regarding income escaping assessment],-

[Section 34(1), 2nd para., part]

(i) at any time, if the income chargeable to tax which has escaped assessment or has been under-assessed or assessed at too a low rate or has been made the subject of excessive relief under this Act, or the loss or depreciation allowance which has been computed in excess, amounts to or is likely to amount to fifty thousand rupees or more for the relevant assessment year;

[Section 34(1), 1st proviso, clause (ii), latter half part]

(ii) within a period of sixteen years from the end of the relevant assessment year, where the case does not fall under sub-clause (i) of this clause and the income chargeable to tax which has escaped assessment or has been under assessed or assessed at too low a rate or has been made the subject of excessive relief under this Act or under the Indian Income-tax Act, 1922 (11 of 1922), or the loss or depreciation allowance which has been computed in excess under this Act or under the said Act, amounts to or is likely to amount to one lakh of rupees or more in the aggregate for the sixteen assessment years (including assessment years under the said Act) immediately preceding the assessment year in which such notice is issued;

[Section 34(1), 1st proviso, clause (ii), latter half, part modified]

(iii) within a period of eight years from the end of the relevant assessment year, in any other case;

[Section 34(1) 1st proviso clause (ii), earlier half]

(b) in cases falling under clause (b) of section 152 [section regarding income escaping assessment], within a period of four years from the end of the relevant assessment year.

[Section 34(1), 2nd para., part]

(2) If the person on whom a notice under section 154 [section re: notice] is to be served is a person treated as the agent of a non-resident under section 173 [section 43] and the assessment or reassessment to be made in pursuance of the notice is to be made on him as agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year.

[Section 34(1), 2nd proviso]