The existing provisions of section 153 and 153B, inter alia, provides the time limit for completion of assessment and reassessment of income by the Assessing Officer. Time limits have been provided for completion of assessment or reassessment under section 143(3), 147, 153A, 153C, etc. Further, these time limits get extended if a reference is made under section 92CA to the Transfer Pricing Officer during the course of assessment/reassessment proceedings. These time limits are either from the end of the financial year in which the notice for initiation of the proceedings was served or from the end of the assessment year to which the proceedings relate.
It is proposed to amend the aforesaid sections, i.e., 153 and 153B so as to provide that the time limits for completion of assessments and reassessments shall respectively be increased by three months.
The existing period and the new extended period for completion of pending proceedings and subsequent proceedings under these provisions is given below:
Limitation of time
U/S Current Time Limt Proposed
143 21 months from the end of the A.Y. 24 months143 and 92CA 33 months from the end of the A.Y. 36 months
148 9 months from the end of the F.Y. 12 months
in which notice issued
148 and 92CA 21 months from the end of the F.Y. 24 months
in which notice issued
250 or 254 9 months from the end of the F.Y. 12 months
in which order received
or 263
250 or 254 21 months from the end of the 24 months
F.Y. in which order received
or 263, and 92CA
Consequential amendments have been made in the provisions of section 17A of the Wealth-tax Act for increasing the time limit by three months for completion of assessment/reassessment proceedings.
These amendments will take effect from 1st July, 2012.
2 comments:
If the ITAT has set aside one ground of objection to the file of the AO and the rest were decided by the ITAT , then what is the time limit prescribed in the IT Act to complete the assessment U/s 143(3) rws 250. On this subject, so far there was no clarity even in the section 153(2)(ii) of the IT Act 1961.Next what is reasonable time limit in service of demand notice u/s156 of the Act. So far in the Act, this issue was not dealt. May be 6 months since if penalty initiated in the assessment completed then the limitation period may expires 6 months. CBDT may look into these things on top priority.
what is the time limit to re-assess the set aside on one issue by the ITAT and the rest were given effect in consequential order according to the same judgement of ITAT. What exactly timelimit specified in section 153(2)(ii) of IT Act.
What is the reasonable time limit to serve the demand notice u/s156. These two things are yet to be decided by the Act.
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