Clarification required

Hi All

Can anybody explain me Explanation 2 to Sec 153 and Explanation 3 to Sec 153 in Income Tax. Thanx in advance.

Replies (2)

Dear Niki,

Explanation 2 to Sec 153 - Example

Suppose an order passed in 2010 by CIT(A) / ITAT / HC / SC / CIT u/s 263/264  says that any income is not taxable in the AY(say 2007-2008) in question becos such income  pertains to another AY (say 2006-07), NOW TO GIVE EFFECT TO THIS FINDING OF THE ORDER, AO CAN COMPLETE THE ASSESSMENT EVEN AFTER THE TIME LIMIT FOR COMPLETION OF  ASSESSMENT OF AY 2006-07 HAS EXPIRED...............

Explanation 3 to Sec 153 - Similary if order says that a particullar income is not taxable in the hands of assessee(Say Mr. A) becos it is the income of another assessee (Mrs. A),  NOW AGAIN TO GIVE EFFECT TO THIS FINDING OF THE ORDER, AO CAN COMPLETE THE ASSESSMENT EVEN AFTER THE TIME LIMIT FOR COMPLETION OF  ASSESSMENT IN CASE OF Mrs. X HAS EXPIRED...............

I hoe the above clarifies ur doubt......................

Thanx Amir. But I think "Sec 153(3)a" also states the same thing, if i m not wrong...

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
Featured 27 October 2026
semi-qualified CA

Saini Pati Shah & Co LLP, Chartered Accountants

Mumbai

CA Final

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details