Section 149 and 150 of Income Tax Act 1961: Time Limit for Notice and Assessment Pursuant to Orders

Sections 149 and 150 of the Income Tax Act, 1961 deal with the limitation period for issuing notice under Section 148 and special provisions where reassessment is required to give effect to findings or directions contained in appellate, revision or court orders.

Section 149 Income Tax Act 1961: Time Limit for Notice

Section 149 prescribes the limitation period for issue of notice under Section 148 for reassessment proceedings. A notice cannot be issued after the prescribed period except in cases covered by statutory exceptions.

• The limitation period depends on the relevant assessment year and the nature of income alleged to have escaped assessment.
• The provisions are subject to approval requirements under Section 151.
• The applicable limitation depends on the law applicable to the relevant assessment year.

Section 150 Income Tax Act 1961: Cases Where Assessment Follows an Order on Appeal

Section 150 provides that notwithstanding Section 149, a notice under Section 148 may be issued at any time where assessment, reassessment or recomputation is required to give effect to any finding or direction contained in an order passed in appeal, reference or revision proceedings or by a court.

However, Section 150(2) restricts this power where such assessment or reassessment could not have been made at the time when the original appellate or judicial order was passed due to another limitation provision.

Key Points