The Tribunal passed an order in case of a company that the income was to be assessed in the hands of the assessee. In light of the direction, the AO reopened the assessment beyond the period of 6 years relying on the provision of S. 150(1). The assessee contented that the reassessment was barred by limitation. The Tribunal in case of the assessee held that, the order of the CIT(A) was appealed before the Tribunal in case of the first mentioned company. On the day when the said CIT(A) order was made, the time limit to reopen the assessment in case of the assessee had already expired. Under S. 150(2), the order appealed against must be taken as the order of the CIT(A) and not that of the AO. Accordingly, the Tribunal held that the reassessment was barred by limitation. (AY. 2001-02, 2002-03)
Ramesh Chand Soni (HUF) v. ITO (2018) 161 DTR 205 / 191 TTJ 137 (Jaipur)(Trib.)
S. 150 : Assessment – Order on appeal – Tribunal gave direction in the case of one person for assessing the income in the hands of the correct person –For the purpose of sub-section (2) of S. 150, the order under appeal would be the order of CIT(A) and, when the same was made, the limitation of 6 years had already expired to assess the correct person – Held, reassessment in case of the correct person was barred by limitation [S. 149]