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Time Limit for Completion of all Assessments and Re-Assessment [Section 153]

 

In respect of an order of assessment relating to assessment year commencing on 1.4.2018

In respect of an order of assessment relating to assessment year commencing on or after 1.4.2019

1.

Assessment under section 143 / 144
[Section 153(1)]

18 months from the end of relevant assessment year in which the income was first assessable.

12 months from the end of relevant assessment year in which the income was first assessable.

 

 

2.

Assessment! Re-assessment under section 147 [Section 153(2)]

Where the notice under section 148 is served on or after 1.4.2019—
12 months from the end of the Financial Year in which the notice under Section 148 was served on the assessee.

3.

Fresh assessment where original assessment of income has been set aside or cancelled by Tribunal under section 254, or by CIT under section 263 or 264 [Section 153(3)]

Where the order under section 254 is received by the Principal chief commissioner or chief commissioner or Principal Commissioner or Commissioner, as the case may be, the order under section 263 or section 264 is passed by the Principal commissioner or commissioner on or after the 1st day of April, 2019—

12 months from the end of the Financial Year in which such order of set aside or canceling the assessment:

(i)         passed by the tribunal under section 254 was received by the Principal CCIT/CCIT/Principal CIT/ CIT or

(ii)        was passed by the Principal CIT/CIT. under Section 263 or 264

as the case may be.

4.

Where a reference under section 92CA(1) is made during the course of the proceeding for the assessment or reassessment [Section 153(4)]

Notwithstanding anything contained in section 153(1) or (2) or (3), (mentioned above) the period available for completion of assessment or reassessment, as the case may be. under the said section 153(1) or (2) or (3) shall be extended by 12 months.

5.

Where effect to an order under section 250 or section 254 or section 260 or section
262 or section 263 or section 264 is to be given by the Assessing Officer, wholly or partly, otherwise than by making a fresh assessment or reassessment. [Section 153(5)]

Such effect shall be given within a period of 3 months from the end of the month in which—

(i)         order under section 250 or section 254 or section 260 or section 262 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner,

(ii)        the order under section 263 or section 264 is passed by the Principal Commissioner or Commissioner:

as the case may be,

Provided that where it is not possible for the Assessing Officer to give effect to such order within the aforesaid period, for reasons beyond his control, the Principal Commissioner or Commissioner on receipt of such request in writing from the Assessing Officer, if satisfied, may allow an additional period of 6 months to give effect to the order.

Provided further that where an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 requires verification of any issue by way of submission of any document by the assessee or any other person or where an opportunity of being heard is to be provided to the assessee, the order giving effect to the said order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 shall be made within the time specified in section 153(3).

6.

(i)         where the assessment, reassessment or re-computation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, section 254, section 260, section 262, section 263, or section 264 or in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act. [Section l53(6)(i)]

Nothing contained in section 153(1) and (2) shall apply to such assessments, reassessments and re-computation which may, subject to the provisions of section 153(3) and (5), be completed on or before the expiry of 12 months from the end of the month in which such order is received or passed by the Principal Commissioner or Commissioner, as the case may be Explanation 2 to section 153

Explanation 2.—For the purposes of this section, where, by an order referred to in section 153(6)(i),—

(a)        any income is excluded fro© ©he total income of the assessee for an assessment year, then, an assessment of such income for another assessment year shall. for the purposes of section 150 and this section, be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order: or

(b)        any income is excluded from the total income of one person and held to be the income of another person, then, an assessment of such income on such other person shall, for the purposes of section 150 and this section, be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order, if such other person was given an opportunity ol being heard before the said order was passed.

 

(ii)        where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147 [Section 153(6)(ii)].

Nothing contained in section 153(1) and (2) shall apply to such assessments, reassessments and re-computation which may, subject to the provisions of section 153(3) and (5), be completed on or before the expiry of 12 months from the end of the month in which the assessment order in the case of the firm is passed

7.

Where effect to any order, finding or direction referred to in section 153(5) or
section (6) is to be given by the Assessing Officer, within the time specified in the said sections 153(5) or 153(6), and such order has been received or passed, as the case may be, by the income tax authority specified therein before the 1st day of June, 2016. [Section 153(7)]

The Assessing Officer shall give effect to such order, finding or direction, or assess, reassess or recompute the income of the assessee, on or before the 31st day of March, 2017.

8.

Where any proceeding initiated or the order of assessment or reassessment made under section 153A(1) relating to assessment of search cases has been annulled in appeal or other legal proceedings and the assessment or reassessment relating to assessment year which was abated has revived. [Section 153(8)]

1 year from the end of the month of such revival

or

within the time specified in this section i.e. Section 153 or Section 153B(1),

Whichever is Later.

 

 

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