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
| Proceedings under section | Current time allowed | Proposed Period |
|
143 |
21 months from the end of the A.Y. | 24 months |
| 143 and 92CA | 33 months from the end of the A.Y. | 36 months |
|
148 |
9 months from the end of the F.Y. in which notice issued | 12 months |
| 148 and 92CA | 21 months from the end of the F.Y. in which notice issued | 24 months |
| 250 or 254 or 263 | 9 months from the end of the F.Y. in which order received | 12 months |
| 250 or 254 or 263, and 92CA | 21 months from the end of the F.Y. in which order received | 24 months |
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.
This is a very welcome proposal. The tax administrators were a hassled lot under the old set up.