Section 150(1) & Section 150(2)

Hi all

Section 150 (1) of the income tax act is

150. (1) Notwithstanding anything contained in section 149, the notice under

section 148 may be issued at any time for the purpose of making an

assessment or reassessment or recomputation in consequence of or to give

effect to any finding or direction contained in an order passed by any authority

in any proceeding under this Act by way of appeal, reference or revision 41[or by

a Court in any proceeding under any other law].

Section 150(2) is

(2) The provisions of sub-section (1) shall not apply in any case where any such

assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, reassessment

or recomputation could not have been made at the time the order which was the

subject-matter of the appeal, reference or revision, as the case may be, was made

by reason of any other provision limiting the time within which any action for

assessment, reassessment or recomputation may be taken

Can anyone explain me the limitation given in section 150(2) with an illustration.

Kindly Help

Thank You

I am giving an example from notes of ahuja sir. Hope it will help u.

Q- Assessing officer while making assessment of A.Y. 2001-02, passed an order on 5/7/2003 disallowing certain expenses which was being allowed to assessee right from AY 1971-1972. In response to appeal filed by assessee supreme court held that expenses are not allowed.

can assessing officer issue notice for reassessment right from 1971-72?

Sol-: As per sec. 150(1) notice could have been issued for reassessment right from AY 1971-72. However when limitation of 150(2) is applied we will see the provisions applicable on 5/7/2003 i.e. date of passing order which is subject matter of appeal.

As per provisions on 5/7/2003 the assessing officer could issue notice for reassessment only for a maximum period of 6 yrs. Hence on 5/7/2003 notice could not have been issued for AY 1971-72 to1996-97.

Hence in given case as per limitation of 150(2) notice can be issued by assessing officer for AY 1997-98 to 2002-03.