Appellate Tribunal held that since the reopening was based on the order of the Commissioner (Appeals), the limitation was relaxed under section 150(1) subject to the restrictions provided under sub-section (2) of section 150. The assessment order was passed by the AO in the case of the partner on February 27, 2014 and the limitation had to be considered from the date of passing the assessment order in the wrong hands. As on February 27, 2014 the Assessing Officer could not reopen the assessment of the assessee as it was barred by limitation as provided under section 149 and the relaxation provided under section 150(1) and (2) was only applicable if the AO could have assessed the same income in the hands of the right person as on the date of the order by which the income was wrongly assessed in the hands of other person. (AY. 2006-07)
Goodwill Timber Supply v. ITO (2019) 73 ITR 225 (Jaipur.)(Trib.)
S. 148 : Reassessment–Notice-reopening against assessee-firm on basis of order on appeal in case of partner of assessee-reassessment to bring to tax in hands of firm sum wrongly taxed in partner’s hands-limitation to be considered as on date of passing assessment order in partner’s hands. [S. 147, 149, 150(1)]