Time limit for completion of assessments and reassessments.boseDocument Transcript
Time limit for completion ofAssessments andRe-assessments Shankar Bose Inspector of Income-Tax MSTU, Puri
Time limit for completion of assessments and reassessments(1) No order of assessment shall be made undersection 143 or section 144 at any time after theexpiry of-(a) two years from the end of the assessment yearin which the income was first assessable; or(b) one year from the end of the financial year inwhich a return or a revised return relating to theassessment year commencing on the 1st day ofApril, 1988, or any earlier assessment year, is filedunder sub-section (4) or sub-section (5) of section139,whichever is later.(2) No order of assessment reassessment orrecomputation shall be made under section 147after the expiry of one year from the end of thefinancial year in which the notice under section148 was served:Provided that where the notice under section 148was served on or before the 31st day of March,1987, such assessment, reassessment orrecomputation may be made at any time up to the31st day of March, 1990.
(2A) Notwithstanding anything contained in sub-sections (1) and (2), in relation to the assessmentyear commencing on the 1st day of April, 1971,and any subsequent assessment year, an order offresh assessment in pursuance of an order undersection 250, section 254, section 263 or section264, setting aside or cancelling an assessment,may be made at any time before the expiry of oneyear from the end of the financial year in whichthe order under section 250 or section 254 isreceived by the Chief Commissioner orCommissioner or, as the case may be, the orderunder section 263 or section 264 is passed by theChief Commissioner or Commissioner:Provided that where the order under section 250or section 254 is received by the ChiefCommissioner or Commissioner or, as the casemay be, the order under section 263 or section264 is passed by the Chief Commissioner orCommissioner, on or after the 1st day of April,1999 but before the 1st day of April, 2000, such anorder of fresh assessment may be made at anytime up to the 31st day of March, 2002.(3) The provisions of sub-sections (1) and (2) shallnot apply to the following classes ofassessments, reassessments and recomputationswhich may, be completed at any time-
(ii) where the assessment, reassessment orrecomputation is made on the assessee or anyperson in consequence of or to give effect to anyfinding or direction contained in an order undersection 250, section 254, section 260, section 262,section 263, or section 264 or in an order of anycourt in a proceeding otherwise than by way ofappeal or reference under this Act;(iii) where, in the case of a firm, an assessment ismade on a partner of the firm in consequence ofan assessment made on the firm under section147.Explanation 1.-In computing the period oflimitation for the purposes of this section-(i) the time taken in reopening the whole or anypart of the proceeding or in giving an opportunityto the assessee to be re-heard under the provisoto section 129, or(ii) the period during which the assessmentproceeding is stayed by an order or injunction ofany court, or
The following clause (iia) shall be inserted after clause(ii) in Explanation 1 to sub-section (3) of section 153 bythe Finance Act, 2002, w.e.f. 1-4-2003:(iia) the period commencing from the date onwhich the Assessing Officer intimates the CentralGovernment or the prescribed authority, thecontravention of the provisions of clause (21) orclause (22B) or clause (23A) or clause (23B) orsub-clause (iv) or sub-clause (v) or sub-clause (vi)or sub-clause (via) of clause (23C) of section 10,under clause (i) of the proviso to sub-section (3)of section 143 and ending with the date on whichthe copy of the order withdrawing the approval orrescinding the notification, as the case may be,under those clauses is received by the AssessingOfficer;(iii) the period commencing from the date onwhich the Assessing Officer directs the assesseeto get his accounts audited under sub-section(2A) of section 142 and ending with the the lastdate on which the assessee is required to furnisha report of such audit under that sub-section, or(iva) the period (not exceeding sixty days)commencing from the date on which theAssessing Officer received the declaration undersub-section (1) of section 158A and ending withthe date on which the order under sub-section (3)of that section is made by him, or
(v) in a case where an application made before theIncome-tax Settlement Commission under section245C is rejected by it or is not allowed to beproceeded with by it, the period commencingfrom the date on which such application is madeand ending with the date on which the order undersub-section (1) of section 245D is received by theCommissioner under sub-section (2) of thatsection,shall be excluded.Provided that where immediately after theexclusion of the aforesaid time or period, theperiod of limitation referred to in sub-sections (1),(2) and (2A) available to the Assessing Officer formaking an order of assessment, reassessment orrecomputation, as the case may be, is less thansixty days, such remaining period shall beextended to sixty days and the aforesaid period oflimitation shall be deemed to be extendedaccordingly.Explanation 2.-Where, by an order referred to inclause (ii) of sub-section (3), any income isexcluded from the total income of the assesseefor an assessment year, then, an assessment ofsuch income for another assessment year shall,for the purposes of section 150 and this section,be deemed to be one made in comsequence of orto give effect to any finding or direction contained
in the said order.Explanation 3.-Where, by an order referred to inclause (ii) of sub-section (3), any income isexcluded from the total income of one person andheld to be the income of another person, then, anassessment of such income on such other personshall, for the purposes of section 150 and thissection, be deemed to be one made incosequence of or to give effect to any finding ordirection contained in the said order, providedsuch other person was given an opportunity ofbeing heard before the said order was passed. THANK YOU