The tax on the income of the other person which has been included in the income of assessee can either be recovered from the assessee or from the other person. However, the liability of the other person is limited to the portion of the tax lived on the assessee which is attributable (on the basis of the average rate of tax) to the income so included. The liability of a person arises after the service of the notice of demand by the assessing officer in this behalf.
Where the transferred assets is held jointly by two or more person they shall be jointly and severally liable to pay such tax.
