TIME LIMITSTIME LIMITSByShankar BoseInspector of Income-taxMSTU, Puri
Intimation u/s 143(1)Intimation u/s 143(1) Intimation should be sent withinone year from the end of theFinancial year in which the Returnwas filed.
Assessment u/s 143 / 144Assessment u/s 143 / 144 Notice u/s 143(2) is to be served onthe assessee within a period of 6months from the end of the financialyear in which the return is furnished(w.e.f. 01.04.2008)- earlier one yearfrom end of month. Order-2 Yrs from the end of therelevant Asstt. Yr. in which the incomewas first assessable(1 year & 9 monthsfor AY 2004-5 to 09-10).
Cases where reference has beenCases where reference has beenmade to TPOmade to TPO In Transfer Pricing Officer(TPO)reference cases shall beextended by 12 months.
(Re)Assessment u/s 147(Re)Assessment u/s 147 Time Limit for issue of notice u/s 148Up to 4 years fromthe end of therelevant Asstt YearBeyond 4 years but up to6 years from the end ofthe relevant Asstt YearIn casessubject toscrutiny u/s143(3)/147Assessment can bereopened whateveris the amount ofincome escapedIf the escaped income isRs. 1,00,000 or more forthat year ( Approval ofCIT/CCIT required)In other cases Assessment can bereopened whateveris the amount ofincome escapedIf the escaped income isRs. 1,00,000 or more forthat year ( Approval ofJCIT/Addl.CIT required)
(Re)Assessment u/s 147-(Re)Assessment u/s 147-Ss153(2)Ss153(2) 1 year from the end of FY ofservice. 2 yrs for TPO cases 9 months/21 months for ordersserved between 1/4/2005 to31/3/2010.
Rectification u/s 154Rectification u/s 154 For filing petition – Within 4 yearsfrom the end of the Financial Year, inwhich the order sought to be rectifiedwas passed. Where an application for rectificationis made by the assessee, on afterJune 1, 2001, the AO shall pass theorder within 6 months from the end ofthe month in which the applicationwas filed.
When order can be passed afterWhen order can be passed afterthe Time Limitthe Time Limit Circular No. 73, dtd January 7,1972 :The authorities making rectification areauthorised by the Board to dispose ofan application u/s 154 even after theexpiry of time-limit if a valid applicationhad been filed by the assessee withinthe statutory time-limit but was notdisposed of by the concerned authoritywithin the time limit.
Fresh assessment where originalAssessment has been Set Aside/Cancelled u/s 250/254/263/264(Ss 153(2A)) 1 year from the end of the F.Y.in which order of S.A. wasreceived / made by CIT 2 Yrs in TPO cases For orders passed/receivedbetween 1/4/2005 to31/3/2011- 9 months/ 21months.
Section 153(3)Section 153(3) No Time Limit in the case of a Finding orNo Time Limit in the case of a Finding orDirection in the following cases –Direction in the following cases –a.a. Where the assessment, reassessment orrecomputation is made in consequence of or togive effect to any finding or direction containedin an order of appeal or revision under section250,254,260, 262, 263 or 264 or in an order ofany Court in a proceeding otherwise than byway of appeal or reference under the Act ;b.b. Where, in the case of a firm, an assessmentis made on a partner of the firm in consequenceof an assessment made on the firm undersection 147
Revision u/s 263Revision u/s 263 To pass order within 2 years from theend of the financial year in which theorder sought to be revised was passed. Service of order is not included in thetime limit. The period of limitation commencesfrom the date of order of assessmentand not from the date on which order ofre-assessment has been passed –Ashoka Buildcon Ltd. Vs CITTaxman 29(Bom.)
Revision u/s 263Revision u/s 263 The time limit is not applicable in the case ofrevisional order passed on the direction of theAppellate Tribunal, the High Court or theSupreme Court. In computing the aforesaid period oflimitation, the time taken in giving anopportunity to the assessee to be re-heardunder the proviso to section 129 and anyperiod during which any proceeding u/s 263 isstayed by an order or injunction of any Courtshall be excluded.
Revision u/s 264Revision u/s 264 If the Commissioner Acts suo motuu/s 264, the alleged order must berevised within one year from thedate of the original order. If the assessee refers to the CIT,the application must be made within1 year from the date ofcommunication of order, or the dateon which he otherwise came toknow, whichever is earlier.
Revision u/s 264Revision u/s 264 In such case, the CIT can pass an orderu/s 264 within 1 year from the end ofthe Financial Year in which theapplication for revision was made. The time limit is not applicable in thecase of revisional order passed on thedirection of the Appellate Tribunal, theHigh Court or the Supreme Court.
Revision u/s 264Revision u/s 264 In computing the aforesaid period oflimitation, the time taken in givingan opportunity to the assessee tobe re-heard under the proviso tosection 129 and any period duringwhich any proceeding u/s 263 isstayed by an order or injunction ofany Court shall be excluded.
Section 153B provides for the time limit forcompletion of search assessments. It providesthat the Assessing Officer;i. shall make an order of assessment orreassessment in respect of each assessmentyear, falling within six assessment years undersection 153A within a period of 2yrs/21 months(1/4/2005 to 31/3/2009)from the end of thefinancial year in which the last of theauthorizations for search under section 132 orfor requisition under section 132A was executed.TIME LIMITS FOR COMPLETION OFTIME LIMITS FOR COMPLETION OFASSESSMENT U/S 153B:ASSESSMENT U/S 153B:
Exclusion from TIME LIMITS FOR COMPLETIONExclusion from TIME LIMITS FOR COMPLETIONOF ASSESSMENT U/S 153B(Explanation):OF ASSESSMENT U/S 153B(Explanation):a. the period during which the assessmentproceeding is stayed by an order or injunctionof any Court; orb. the period commencing from the day on whichthe Assessing Officer directs the assessee toget his accounts audited under sub-section (2A)of section142 and ending on the day on whichthe assessee is required to furnish a report ofsuch audit under that sub-section, or
c. the time taken in opportunity to theassessee of being reheard under theproviso to section 129, or
Application made before the SettlementCommission under section 245C isrejected, the period commencing on thedate on which such application is madeand ending with the date on which theorder under subsection (1) of section245D is received by the Commissionerunder sub-section (2) of that section
SETTLEMENT CASESSETTLEMENT CASES The time limits under section153 shall not apply to the orderof the settlement commission orany order of assessment,reassessment or re-computationrequired to be made by theassessing officer if thesettlement commission directs todo so.
Penalty Ss 275 Within the year of initiation 6 month from end of month ofITAT/CIT order- whichever later In CIT Appeal cases (appeal orderpassed on or after 1/6/2003) oneyear from the end of year of receiptof order.