Time limit for completion of assessment under section 153A [New Section 153B]

Effective from: 1st June, 2016

(i) The time limit for completion of assessments made under section 153A or section 153C cases have been amended to align the same with the new time limits provided under new section 153. Further, in order to simplify the provisions of section 153B by retaining only those provisions that are relevant to the current provisions of the Act, section 153B has been substituted.

(ii) The time limit for assessment or reassessment under section 153B with effect from 1st June, 2016 is as follows –

	Case	Time limit for completion of assessment or reassessment
153B(1)                     153B(1) – First Proviso	153A – for the assessment year relevant to the previous year in which search is conducted u/s 132 or requisition is made u/s 132A and for each of the 6 assessment years immediately preceding the assessment year relevant to the previous year in which search was conducted     In case of a person assessed under section 153C – for the assessment year relevant to the previous year in which search is conducted and for each of the 6 assessment years immediately preceding the assessment year relevant to the previous year in which searchwas conducted	21 months from the end of the financial year in which the last of the authorizations for search under section 132 or for requisition under section 132A was executed           21 months from the end of the financial year in which last of the authorizations for search under section 132 or for requisition under section 132A was executed (or)   9 months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over to the jurisdictional Assessing Officer under section 153C, whichever is later
153B(1) – Second Proviso	Completion of assessment in cases where the last of the authorizations for search under section 132 or for requisition under section 132A was executed and during the course of assessment or reassessment proceedings, reference u/s 92CA(1) is made.   Completion of assessment/ reassessment in case of other person referred to in section 153C in cases where the last of the authorizations for search under section 132 or for requisition under section 132A was executed and during the course of assessment or reassessment proceedings, reference u/s 92CA(1) is made.	33 months from the end of the financial year in which the last of the authorizations for search under section 132 or requisition under section 132A was executed. 33 months from the end of the financial year in which the last of the authorizations for search under section 132 or for requisition under section 132A was executed (or) 21 months from the end of the financial year in which the books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later.

 

(iii) Time of deemed execution of authorization in case of search and requisition :

	Case	Time when authorization is deemed to have been executed
(a)	Search u/s 132	On the conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued
(b)	Requisition u/s 132A	On the actual receipt of books of account or other documents or assets by the Authorised Officer.

 

(iv) The provisions of section 153B as they stood immediately before their amendment by the Finance Act, 2016, shall apply to and in relation to any order of assessment, reassessment or recomputation made before 1st June, 2016.

(v) Exclusion of period [Explanation to section 153B] – In computing the period of limitation for the purposes of section 153B, the following time periods shall be excluded:

	Case	Exclusion of Period
		Commencing from		Ending with
(1)	Direction to get accounts audited under section 142(2A)	the date on which the A.O. directs the assessee to get his accounts audited under section 142(2A)	the last date on which the assessee is required to furnish a report of such audit (or) the date on which the order setting aside such direction is received by the PC/CIT, if such direction is challenged before a Court
(2)	Reference to the Valuation Officer under section 142A(1)	the date on which the Assessing Officer makes a reference to the Valuation Officer	the date on which the report of the Valuation Officer is received by the Assessing Officer
(3)	Where an application made before the Income-tax Settlement Commission is rejected by it or is not allowed to be proceeded with by it	the date on which an application is made before the Settlement Commission under section 245C	the date on which the order u/s 245D(1) is received by the PC/CIT u/s 245D(2)
(4)	Where an application is made before the AAR u/s 245Q(1)	the date on which an application is made before the AAR u/s 245Q(1)	the date on which the order rejecting the application is received by the PC/CIT u/s 245R(3) (or) the date on which the advance ruling pronounced by it is received by the PC/CIT u/s 245R(7), as the case may be
(5)	Where a proceeding or assessment order or reassessment order referred to in section 153A(2) is annulled	The date of annulment of the proceeding or assessment order or reassessment order	The date of receipt of order setting aside the order of such annulment, by the PC/CIT.
(6)	Where reference(s) for exchange of information is made by a competent authority	the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A	the date on which the information requested is last received by the PC/CIT (or) a period of one year, whichever is less
(7)	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
(8)	the period during which the assessment proceeding is stayed by an order or injunction of any court.

 

(vi) However, where immediately after the exclusion of the aforesaid period, the period of limitation referred to in section 153B(1)(a) and (b) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than 60 days, such remaining period shall be extended to 60 days. Consequently, the aforesaid period of limitation shall be deemed to be extended accordingly.

(vii) Further, where the period available to the Transfer Pricing Officer is extended to 60 days in accordance with the proviso to section 92CA(3A) and the period of limitation available to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, is less than 60 days, such remaining period shall be extended to 60 days. Consequently, the aforesaid period of limitation shall be deemed to be accordingly extended.