Time limit for calling in question jurisdiction of Assessing Officer where notice is served under section 153A(1) or 153C(2) [Section 124(3)]

Effective from: 1st June, 2016

(i) Section 124(3)(a) provides that no person shall be entitled to call in question the jurisdiction of an Assessing Officer in a case where return is filed under section 139(1), after the expiry of one month from the date on which he was served with a notice issued under section 142(1) or section 143(2) or after the completion of the assessment, whichever is earlier.

(ii) This provision does not, however, specifically refer to notices issued under section 153A or section 153C which relate to assessment in cases where a search and seizure action has been taken or cases connected to such cases.

(iii) Consequently, at the appellate stages, the jurisdiction of an Assessing Officer in such cases have been called into question, inspite of the fact that order passed under section 153A or 153C has to be read with section 143(3).

(iv) For the purpose of conveying the real intent of law in such cases, clause(c) has been inserted in section 124(3) to specifically provide that in cases where search is initiated under section 132 or books of accounts, other documents or any assets are requisitioned under section 132A, no person shall be entitled to call into question the jurisdiction of an Assessing Officer after the expiry of one month from the date on which he was served with a notice under section 153A(1) or section 153C(2) or after the completion of the assessment, whichever is earlier.