Time limit for completion of assessments and reassessments.
153. 32[(1) No order of assessment33 shall be made under section 143 or section 144
at any time after the expiry of—
(a) two years from the end of the assessment year
in which the income was first assessable ; or
(b) one year from the end of the financial year
in which a return or a revised return relating to the assessment year
commencing on the 1st day of April, 1988, or any earlier assessment year, is
filed under sub-section (4) or sub-section (5) of section
139,
whichever
is later :]
34[Provided
that in case the assessment year in which the income was first assessable is
the assessment year commencing on the 1st day of April, 2004 or any subsequent
assessment year, the provisions of clause (a) shall
have effect as if for the words “two years”, the words “twenty-one months” had
been substituted :]
35[Provided
further that in case the assessment year in which the income was first
assessable is the assessment year commencing on the 1st day of April, 2005 or
any subsequent assessment year and during the course of the proceeding for the
assessment of total income, a reference under sub-section (1) of section 92CA—
(i) was made before the 1st day of June, 2007 but
an order under sub-section (3) of that section has not been made before such
date; or
(ii) is made on or after the 1st day of June,
2007,
the provisions of clause (a) shall,
notwithstanding anything contained in the first proviso, have effect as if for
the words “two years”, the words “thirty-three months” had been substituted.]
36[(1A) No
order of assessment shall be made under section
115WE or section 115WF at any time after the
expiry of 37[twenty-one months]
from the end of the assessment year in which the fringe benefits were first
assessable.
(1B) No order of assessment or reassessment shall be
made under section 115WG after the expiry of 38[nine months] from the end of the
financial year in which the notice under section
115WH was served.]
39[(2) No order of assessment,
reassessment or recomputation shall be made under section
147 after the expiry of 40[one
year] from the end of the financial year in which the notice under section 148 was served :
41[Provided that where the
notice under section 148 was served on or after
the 1st day of April, 1999 but before the 1st day of April, 2000, such
assessment, reassessment or recomputation may be made at any time up to the
31st day of March, 2002 :]
42[Provided
further that where the notice under section 148
was served on or after the 1st day of April, 2005, the provisions of this
sub-section shall have effect as if for the words “one year”, the words “nine
months” had been substituted :]
43[Provided
also that where the notice under section 148
was served on or after the 1st day of April, 2006 and during the course of the
proceedings for the assessment or reassessment or recomputation of total
income, a reference under sub-section (1) of section
92CA—
(i) was made before the 1st day of June, 2007 but
an order under sub-section (3) of that section has not been made before such
date; or
(ii) is made on or after the 1st day of June,
2007,
the provisions of this sub-section shall,
notwithstanding anything contained in the second proviso, have effect as if for
the words “one year”, the words “twenty-one months” had been substituted.]
44[(2A) Notwithstanding anything
contained in sub-sections (1) 45[,
(1A), (1B)] and (2), in relation to the assessment year commencing on
the 1st day of April, 1971, and any subsequent assessment year, an order of
fresh assessment in pursuance of an order under section
250 or section 254 or section
263 or section 264, setting aside or
cancelling an assessment, may be made at any time before the expiry of one year
from the end of the financial year in which the order under section 250 or section 254
is received by the Chief Commissioner or Commissioner or, as the case may be,
the order under section 263 or section 264 is passed by the Chief Commissioner or
Commissioner:
Provided that where the order under section 250 or section 254
is received by the Chief Commissioner or Commissioner or, as the case may be,
the order under section 263 or section 264 is passed by the Chief Commissioner or
Commissioner, on or after the 1st day of April, 1999 but before the 1st day of
April, 2000, such an order of fresh assessment may be made at any time up to
the 31st day of March, 2002 :]
46[Provided
further that where the order under section 254
is received by the Chief Commissioner or Commissioner or, as the case may be,
the order under section 263 or section 264 is passed by the Commissioner on or after
the 1st day of April, 2005, the provisions of this sub-section shall have
effect as if for the words “one year”, the words “nine months” had been
substituted:]
47[Provided
also that where the order under section 254 is
received by the Chief Commissioner or Commissioner or, as the case may be, the
order under section 263 or section
264 is passed by the Commissioner on or after the 1st day of April, 2006,
and during the course of the proceedings for the fresh assessment of total
income, a reference under sub-section (1) of section
92CA—
(i) was made before the 1st day of June, 2007 but
an order under sub-section (3) of section 92CA
has not been made before such date; or
(ii) is made on or after the 1st day of June,
2007,
the provisions of this sub-section shall,
notwithstanding anything contained in the second proviso, have effect as if for
the words “one year”, the words “twenty-one months” had been substituted.]
(3) The
provisions of sub-sections (1) 48[,
(1A), (1B)] and (2) shall not apply to the following classes of assessments,
reassessments and recomputations which may, 49[subject
to the provisions of sub-section (2A),] be completed at any time—
(i) 50[***]
(ii) where the assessment, reassessment or
recomputation is made on the assessee or any person51 in consequence of or to give effect to51 any finding or direction52 contained in an order under section 250, 254, 260, 262, 263, or 264 53[or in an order of any court in a
proceeding otherwise than by way of appeal or reference under this Act] ;
(iii) 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.
54[(4)
Notwithstanding anything contained in the foregoing provisions of this section,
sub-section (2) of section 153A and sub-section
(1) of section 153B, the order of assessment or
reassessment, relating to any assessment year, which stands revived under
sub-section (2) of section 153A, shall be made
within one year from the end of the month of such revival or within the period
specified in this section or sub-section (1) of section
153B, whichever is later.]
55[Explanation 1.—In
computing the period of limitation for the purposes of this section—
(i) the time taken in reopening the whole or any
part of the proceeding or in giving an opportunity to the assessee to be
re-heard under the proviso to section 129, or
(ii) the period during which the assessment
proceeding56 is stayed by an order
or injunction of any court, or
57[(iia) the period commencing from the date on which
the Assessing Officer intimates the Central Government or the prescribed
authority, the contravention of the provisions of clause (21) or
clause (22B) or clause (23A) or
clause (23B) or sub-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 which the copy of the order withdrawing the approval or
rescinding the notification, as the case may be, under those clauses is
received by the Assessing Officer,] or*
(iii) the period commencing from the date on which
the 58[Assessing] Officer directs
the assessee to get his accounts audited under sub-section (2A) of section 142 and ending with 59[the last date on which the assessee is
required to furnish] a report of such audit under that sub-section, or
(iv) 60[*
* *]
61[(iva) the period (not exceeding sixty days)
commencing from the date on which the 62[Assessing]
Officer received the declaration under sub-section (1) of section 158A and ending with the 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
the Income-tax Settlement Commission under section
245C is rejected by it or is not allowed to be proceeded with by it, the
period commencing from the date on which such application is made and ending
with the date on which the order under sub-section (1) of section 245D is received by the Commissioner under
sub-section (2) of that section, 63[or]
63[(vi) the period commencing from the date on which
an application is made before the Authority for Advance Rulings under
sub-section (1) of section 245Q and ending with
the date on which the order rejecting the application is received by the
Commissioner under sub-section (3) of section 245R,
or
(vii) the period commencing from the date on which
an application is made before the Authority for Advance Rulings under
sub-section (1) of section 245Q and ending with
the date on which the advance ruling pronounced by it is received by the
Commissioner under sub-section (7) of section 245R,]
shall be
excluded :
64[Provided that where
immediately after the exclusion of the aforesaid time or period, the period of
limitation referred to in sub-sections (1), 65[(1A),
(1B),] 66[(2), (2A) and (4)]
available to the Assessing Officer for making an order of assessment,
reassessment or recomputation, as the case may be, is less than sixty days, such
remaining period shall be extended to sixty days and the aforesaid period of
limitation shall be deemed to be extended accordingly:]
67[Provided
further that where a proceeding before the Settlement Commission abates
under section 245HA, the period of limitation
available under this section to the Assessing Officer for making an order of
assessment, reassessment or re-computation, as the case may be, shall, after
the exclusion of the period under sub-section (4) of section
245HA, be not less than one year; and where such period of limitation is
less than one year, it shall be deemed to have been extended to one year; and
for the purposes of determining the period of limitation under sections 149, 153B, 154, 155, 158BE and 231 and for
the purposes of payment of interest under section 243
or section 244 or, as the case may be, section 244A, this proviso shall also apply
accordingly.]
Explanation
2.—Where, by an order 68[referred
to in clause (ii) of sub-section (3)], any income is excluded from
the 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.
Explanation
3.—Where, by an order 68[referred
to in clause (ii) of sub-section (3)], any income is excluded from
the total income of one person and held to be the income of another person69, 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, provided such
other person was given an opportunity of being heard before the said order was
passed.