Section 153(2): Period of 60 days to be counted from whether date of vacation of stay or date of receipt of order

The Court is also unable to accept the submission that the 60 day period in terms of the first proviso to Explanation 1 to section 153 of the Act should begin to run from the date on which the Revenue received a copy of the order of vacation of stay. Such an interpretation is not supported by the plain language of the proviso to Explanation 1. In fact, Circular No. 621, date 19-12-1991 issued by the Central Board of Direct Taxes, while explaining the reasons for introduction of the proviso under Explanation 1, acknowledged that the time remaining after vacation of stay in terms of section 153(2) of the Act may not be sufficient to complete the re-assessment proceedings which is why the language used in the first proviso is that the period “shall be extended to 60 days” for passing the assessment order in terms of section 153(2) of the Act if the period remaining within limitation after the excluded period has elapsed is less than 60 days.

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