In Brief
New Delhi Television Ltd challenged a notice issued by the Income Tax Department claiming undisclosed income had escaped assessment. The Supreme Court held that while the revenue had formed a prima facie view based on material from subsequent years' assessments, the notice failed to clearly invoke the second proviso to Section 147, which permits a 6-year limitation period. The Court found the assessee had disclosed all primary facts necessary for assessment and ruled that provisions cannot be imputed to notices retrospectively. The notice as issued did not invoke the extended limitation period, so the revenue could not benefit from it. The appeal was allowed.
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