Explanation 2 of Section 153: Income Exclusion and Reallocation Rules Explained for Assessment Years

Deeming provisions under Explanation 2 of Section 153 address scenarios where income is excluded from an individual's total income for a specific assessment year or reallocated to another person. If income is excluded from one assessment year and reassessed in another, it is considered a consequence of a finding or direction in the relevant order, per Section 150. Similarly, if income is reassigned to another person, the assessment on that person is deemed consequential, provided they had an opportunity to be heard before the order was issued.