Provision for cases where assessment is in pursuance of an appeal [ Section 150 ] - Income Tax - Ready Reckoner - Income Tax

Provision for cases where assessment is in pursuance of an appeal [ Section 150 ] As per section 149 , no notice can be issued after the expiry of 3 year for assessment, reassessment or recomputation where income has escaped assessment. The restriction of time limit u/s 149(1) is not applicable where notice u/s 148 is issued for 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 or by a Court in any proceeding under any other law. This relaxation is contained in section section 150(1). However, such relaxation will not apply 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. This restriction is contained in section 150(2). Section 150(1) operate to relax the time restriction stipulated u/s 149. such relaxation can be used by the assessing officer only if the restriction placed u/s 150(2) does not affect the operation of section 150(1). It may be noted that the restriction placed u/s 150(2) is applicable only in respect of appeal reference or revision referred to in section 150(1) but it does not apply with reference to an order passed by a court in any proceeding under any law.