Based on the information that a bank account was not disclosed by the assessee in the return of income, reassessment proceedings were initiated. The CIT(A) made an addition of 32% of the said receipts to the total income of the assessee. The assessee challenged the initiation on the jurisdictional ground that the said proceedings are barred by limitation. As per section 153(2) of the Act as was then available on the statute, the assessment u/s 147/143(3) could have been framed latest up to 9 months from the end of financial year in which notice u/s.148 of the Act was served.

In the present case, the assessment had been framed 11 months after the limitation period and hence the jurisdictional requirement had not been satisfied. The appeal of the assessee was  allowed.(AY. 2005-06, 2006-07)