Law:

Section:

Section 150, read with section 154, of the Income-tax Act, 1961 - Income escaping assessment - In pursuance of an order on appeal, etc. - Assessment year 1979-80 - Certain amount of refund due to assessee from K.S.E.B. was assessed on accrual basis in assessment year 1977-78 - Assessee contested said assessment contending that amount of refund was assessable in assessment year 1979-80 in which same was received - It, accordingly, offered said amount for assessment in assessment year 1979-80 - However, when assessment for year 1979-80 was taken up, Commissioner (Appeals) had decided appeal for 1977-78 sustaining assessment of very same amount for assessment year 1977-78 and, therefore, assessment for year 1979-80 was completed by Assessing Officer excluding said income - Assessing Officer, however, passed a conditional order wherein Assessing Officer had freedom to revise assessment to include said income based on return filed by assessee for assessment year 1979-80 in case assessment of said amount for 1977-78 got cancelled in course of proceedings under statute - Ultimately, assessee's claim for exclusion of said income for assessment year 1977-78 was upheld by High Court - Thereafter, Assessing Officer passed a revised assessment for assessment year 1979-80 on basis of income returned by assessee - Assessee contested said revised assessment on ground that same having been passed beyond four years from end of relevant year was time-barred under section 150(2) - Whether limitation under section 150 had no application in instant case because original assessment itself was a conditional order passed by Assessing Officer reserving right to revise it after assessment for assessment year 1977-78 attained finality - Held, yes - Whether once assessment of refund in question for assessment year 1977-78, was ultimately cancelled by Court in reference case, exclusion of amount in original assessment for 1979-80 was a mistake by virtue of aforesaid condition imposed by Assessing Officer and, therefore, Assessing Officer was entitled to revise assessment for year 1979-80 within four years from date of of Court in reference case for 1977-78 - Held, yes FACTS Certain amount…

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