TMI Blog1999 (11) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... rties concerned in this case were not heard by the Tribunal the issue of notice under section 148 by the Assessing Officer claiming that it was to give effect to the order of the Tribunal cannot be upheld ? 2. Whether, on the facts and in the circumstances of the case and also in the light of the facts and figures given in the enclosure to the reference application is not the notice and the assessment order within time in terms of section 151 without recourse to section 150(1) and is not the order vitiated for not considering the issue of limitation under the general provision of section 151 of the Act ? 3. Whether, on the facts and in the circumstances of the case does not the relevant order contain a finding/direction?" The factual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surplus realised from the land belonged to the members of the association of persons could not be construed as a direction within the meaning given to that expression under section 150(2) of the Act. Such submissions were rejected by the Assessing Officer. The matter was carried in appeal before the Deputy Commissioner of Income-tax (Appeals), Calicut (in short "Deputy CIT (A)"), without success. But in the second appeal, the Tribunal accepted the stand with the following observations : "The pre-requisites for treating such income as income of that party are: (a) that there must be a finding of the appellate or revisional authority that the income that is excluded is the income of that third party; and (b) that the third party had be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t issue and must be necessary for adjudication of the dispute. It is to be noted that section 150 is in the nature of an exception to the provision relating to time limit prescribed for completion of assessments. The two provisions which are relevant for the purpose of adjudication of the present dispute are sections 150 and 153. They read as follows : "150. Provision for cases where assessment is in pursuance of an order on appeal, etc.-(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 proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (c) of sub-section (1) of section 271 ; or (c) the expiry of one year from the date of the filing of a return or a revised return under sub-section (4) or sub-section (5) of section 139; whichever is latest. (2) No order of assessment, reassessment or recomputation shall be made under section 147 (a) where the assessment, reassessment or recomputation is to be made under clause (a) of that section, after the expiry of four years from the end of the assessment year in which the notice under section 148 was served; (b) where the assessment, reassessment or recomputation is to be made under clause (b) of that section, after--- (i) the expiry of four years from the end of the assessment year in which the income was first ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall, for the purposes of section 150 and this section, be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order, provided such other person was given an opportunity of being heard before the said order was passed." Section 150(1) overrides the provisions of section 149 prescribing the time-limit for issuance of a notice under section 148. Section 150(1) provides that such notice 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 as contained in an appellate order or revisional order, etc. The conditions of section 150(1) are overriding as is clear from the non obstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e fact that the co-owners have inherited the shares together would not give rise to an association of persons. Please see the decision of the Supreme Court in the case of G. Murugesan and Brothers v. CIT [1973] 88 ITR 432. In respect of an agricultural estate which is owned by four persons each having 1/4th share in the income thereof the Supreme Court has held that the status of an association of persons was not justified (Commr. of Agrl I.T. v. Raja Ratan Gopal [1966] 59 ITR 728). We, therefore, find that the assessees being merely co-owners of the properties have not done anything with the common object of generating income and, therefore, they cannot be assessed as an association of persons. 6. In view of the fact that our finding cut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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