1980 TAX. L. R. 1191 ::(1980) 16 CurTaxRep 219 ::(1980) 2 AndhWR 103 ::(1980) 123 ITR 494 ::(1980) 2 ITJ 174

Andhra Pradesh High Court

Hon'ble Judge(s): C Kondaiah , C.J. AND Punnayya , J

Income-tax Act (43 of 1961) , S.150, S.147, Sec.153(3) Expl.2— Reassessment under Sec. 150 and S. 147 - Distinction - Significance of Sec. 153 (3) Expl. 2 indicated - Assessment of registered firm for 1960-61 - Income-tax Officer adding sum as income from undisclosed sources - A. A. C. on appeal deleting portion of that sum as it pertained to assessment year 1959-60 - Income-tax Officer making reassessment sum for 1959-60 under Sec. 150 to bring to tax deleted portion of sum to give effect to finding in appellate order - Addition of another sum towards deficiency in gross profit held was invalid. The reassessment under Section 150 cannot be equated to reassessment under Section 147. Section 150 is altogether a different provision enacted to meet different situations unlike Section 147. The very purpose of Sec. 150 is to make assessment or reassessment or recomputation to give effect to a finding or direction contained in the order passed in appeal, revision or reference. The finding or direction must be necessary for the disposal of the appeal or revision or for giving relief in respect of the assessment in question. That is why designedly no limitation has been placed for making a reassessment under Section 150. Section 153 (3) Expl. 2 makes it clear that when an income or a portion thereof is excluded from the total income of the assessee for an assessment....