Reassessment limitation under Income-tax law: appellate findings for one year do not extend time for earlier years.

Section 153(2) governs reassessment under section 147 after notice under section 148, and the exception in section 153(3)(ii) applies only where the reassessment is made in consequence of, or to give effect to, a finding or direction in an appellate or revisional order. The appellate order for assessment year 1997-98 dealt only with that year's agricultural income claim and did not direct or require reassessment of the earlier assessment years 1992-93 to 1996-97. Accordingly, section 153(3)(ii) was not available and the reassessments for the earlier years were time-barred under section 153(2).

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Issues: Whether reassessment for the assessment years 1992-93 to 1996-97 was barred by limitation under section 153(2) of the Income-tax Act, 1961, and whether the limitation could be saved by section 153(3)(ii) on the footing that the reassessment was made in consequence of, or to give effect to, any finding or direction in the appellate order for assessment year 1997-98.

Analysis: The time limit under section 153(2) governs reassessment under section 147 after service of notice under section 148, unless the case falls within the statutory exception in section 153(3)(ii). That exception applies only where the reassessment is made in consequence of, or to give effect to, a finding or direction contained in an appellate or revisional order. The appellate order for assessment year 1997-98 merely dealt with the assessee's claim of agricultural income for that year and did not contain any finding or direction requiring reassessment of the earlier assessment years. The finding relied upon by the Revenue was confined to the particular assessment year under appeal and could not be extended to the other years in dispute.

Conclusion: Section 153(3)(ii) was not attracted, the reassessments were time-barred under section 153(2), and the Revenue's appeals failed.

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