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2014 (8) TMI 557 - HC - Income TaxJurisdiction of AO for reopening of assessment – Period of limitation u/s 153 - consequence of or to give effect to any finding or direction in pursuance of order for another year - Addition u/s 68 - Whether the Tribunal fall into error in holding that the AO lacked jurisdiction to reopen the assessment for the purpose of making addition overlooking Section 150 – Held that:- Relying upon Rural Electrification Corporation Ltd. Vs. Commissioner of Income Tax and Anr., [2013 (7) TMI 317 - DELHI HIGH COURT] - The legislative history including purpose behind enactment of sub-section (2) to Section 150 and Explanations 2 and 3 to Section 150 of the Act was discussed - on a combined reading of sub-section (1) of section 150 and sub-section (3) of section 153, it is apparent that in cases falling under clause (ii) of sub-section (3) of section 153 read with Explanation 2 thereunder, the provisions of subsection (1) of section 150 would be applicable and the bar of limitation under section 149 would not be applicable. While section 150(1) and section 153(3) contemplate issuance of notice u/s 148 and completion of assessment, reassessment and re-computation respectively, in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under the Act by way of appeal, reference or revision, Explanation 2 to section 153(3) contains a deeming provision which provides that where by an order referred to in clause (ii) of sub-section (3) any income is excluded from the total income of an assessee for an assessment year, then an assessment of such income for another assessment year shall for the purposes of section 150 and section 153 be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order – Decided in favour of Revenue.
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