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Govind Narayan Sharma
Income Tax Act, 1961 contains different time limits for issuance of notice, filing of application, completion of assessments, passing of penalty order under several sections. Hence, for the ease of reference for professionals and students, I have tried to summarise numerous sections of assessments or reassessments along with respective time limitations in a tabular form under this article. I hope sections mentioned under this article in tabular format will assist you to remember and recall for a long.
| Sl. No. | Section | Content | Provision Brief 1 | Provision Brief 2 |
| 1 | Sec 142(1)(i) | Notice requiring assessee to furnish return. | If assessee has not furnished return of income within time prescribed under Sec 139(1), then AO may issue notice requiring assessee to furnish return within time prescribed in notice. This notice can also be issued after the end of relevant Assessment Year. | |
| 2 | Sec 143(1) | Intimation of Return | Intimation shall be prepared / generation specifying the sum determined to be payable by, or the amount of refund due to, the assessee.
No intimation shall be sent under Sub-Section 143(1) after the expiry of 1 year from the end of financial year in which return is made. |
Acknowledgement (ITR V) shall be deemed as Intimation in case where no sum is payable, refundable and where no adjustment has been made u/s 143(1). |
| 3 | Sec 143(2) | Notice for making Scrutiny Assessment under Sec 143(3) | No notice under Section 143(2) shall be served on the assessee after the expiry of 6 months from the end of financial year in which return is furnished. | Notice under this section can be made either on the basis of return filed or in response to the notice issued under section 142(1). |
| 4 | Sec 153 | Time limit for making Assessment Order under section 143 or under section 144 | No order of assessment/ reassessment under section 143(3) shall be made after the expiry of 21 months from the end of relevant Assessment Year in which the income was first assessable. | In respect of order of assessment relating to AY commencing on 1st April, 2018 the time period shall be 18 months instead of 21 months and for AY commencing on 1st April, 2019 the time period shall be 12 months. |
| 5 | Sec 149 | Time Limit for issue of notice under Sec 148 | No notice under Section 148 shall be issued for the relevant Assessment Year: (a) If 4 years have lapsed from the end of relevant assessment year, unless the case falls under following two categories; (b) If 4 years, but not more than 6 years, have elapsed from the end of relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to Rs. 1 Lac or more for that year; (c) If 4 years, but not more than 16 years, have elapsed from the end of relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escapsed assessment. |
Mere signing of of notice cannot tantamount to issuance of notice as contemplated under Sec 149. The date of issue would be the date on which notice was handed over to the proper officer for the purpose of effecting service on the assessee. |
| 6 | Sec 149(3) | Time Limit for issue of notice under Sec 148 to the agent of Non Resident | No notice under Sec 148 shall be issued on agent of Non Resident after the expiry of 6 years from the end of relevant assessment year. | |
| 7 | Sec 150 | No Time limit for issuance of notice under Sec 148 | Notice under Sec 148 can be issued at any time for the purpose of making assessment or reassessment or recomputation in consequence of or to give effect to the finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision or by a court in any proceeding under any other law. | |
| 8 | Sec 153(2) | Order of assessment/ reassessment or recomputation u/s 147 | No order of assessment/ reassessment/ recomputation u/s 147 shall be made after the expiry of 9 months from the end of financial year in which notice u/s 148 was served on the assessee. | In respect of notice u/s 148 served on or after 1st April, 2019 the time period shall be 12 months instead of 9 months |
| 9 | Sec 153(3) | Time limit for completion of Fresh assessment in pursuance of an order u/s 254, 263 or 264 setting aside or cancelling an assessment order | Before expiry of 9 months from the end of the financial year in which order under section 254 is received or order u/s 263 or 264 is passed. | Order u/s 254 received or order u/s 263 or 264 is passed on or after 1st April, 2019 the time period shall be 12 months instead of 9 months. |
| 10 | Sec 154 | Rectification of Mistake | No order of rectification shall be passed after expiry of 4 years from the end of the financial year in which the order sought to be amended was passed. | Income Tax Authority referred to in Sec 116 may amend any order passed by it, any intimation or deemed intimation u/s 143(1) or amend any intimation passed u/s 200A or u/s 206CB. |
| 11 | Sec 154 | Rectification of Mistake | Where an application for rectification is made by the assessee to Income Tax Authority, then authority shall pass an order within 6 months from the end of the month in which application is received by it. | If order is not passed within 6 months, then the rectification application shall be deemed to be allowed in favour of assessee. |
| 12 | Sec 153B | Time limit for completion of assessment u/s 153A | AO shall make an order of assessment/ reassessment, as follows: (a) in respect of each assessment year falling within 6 assessment years referred to in clause (b) of Sec 153A, within a period of 21 months from the end of the financial year in which search was completed. (b) in respect of the assessment year relevant to the previous year in which search is conducted under Sec 132, within a period of 21 month from the end of the financial year in which search was completed. |
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| 13 | Sec 245D (4A) | Time limit for passing Order of Settlement Commission | The Settlement Commission shall pass an order of Settlement u/s 245D(4), within 18 months from the end of month in which application was made. | When no Order is made by Settlement within 18 months, the proceedings shall abate u/s 245HA. |
| 14 | Sec 245D(6B) | Rectification of Mistake apparent from record by Settlement Commission | The Settlement Commission may at any time within a period of 6 months from the date of the Order, with a view to rectify any mistake apparent from the record, amend any order passed by it. | Where an amendment has the effect of modifying the liability of applicant, no such amendment order shall be passed unless opportunity of being heard is given to the applicant and Commissioner. |
| 15 | Sec 245D(7) | Revival of proceedings, when Settlement becomes Void | If Settlement becomes void, the Income Tax proceedings in respect of matters covered by settlement shall be deemed to have been revived and Income Tax Authority can complete such proceedings at any time before the expiry of 2 years from the end of financial year in which the settlement became Void. | Settlement becomes Void if it has been obtained by fraud or misrepresentation of facts. |
| 16 | Sec 249 | Time limit for filing appeal to CIT(A) | The appeal shall be furnished within 30 days of the following date: (a) Where appeal is u/s 248, the date of payment of tax. (b) Where the appeal relates to any assessment or penalty, the date of service of notice of demand relating to the assessment or penalty. (c) In any other case, the date on which the order sought to be appealed is served. |
Condonation of delay possible, otherwise remedy available is Sec 264[CIT] |
| 17 | Sec 250 | Time limit for issue of Order by CIT(A) | Where it is possible CIT(A), may hear and decide the appeal within a period of 1 year from the end of financial in which such appeal is filed before him under Sec 246A. | This is not mandatory, its directory for CIT(A). CIT(A) cannot set aside assessment & ask AO to make fresh assessment. |
| 18 | Sec 253 | Time limit for filing appeal to ITAT | The appeal to ITAT shall be filed within 60 days of the date on which the order sought to be appealed against is communicated to the assessee or to the CIT, as the case may be. | |
| 19 | Sec 260A | Appeal to High Court | The CIT or the assessee aggrieved by an order passed by the Appellate Tribunal may file an appeal to the High Court, within 120 days from the date on which the order appealed against is received by the CIT or the assessee. | Needs substantial question of law; can condone the delay on sufficient cause. |
| 20 | Sec 263 | Revision Order by CIT u/s 263 | The Order u/s 263 shall not be passed after the expiry of 2 years from the end of the financial year in which order sought to be revised was passed. However, an order under this section can be passed at any time to give effect to the findings or directions contained in an order of the Appellate tribunal, National tax tribunal, High court or Supreme Court. | Against order passed u/s 263 an appeal can be filed to ITAT. |
| 21 | Sec 264 | Revision application u/s 264 | The Principal Commissioner or commissioner cannot on his own motion revise any order if the order has been made more than 1 year previously.
Where an application is made by the assessee, the application must be made within 1 year from the date on which the order was communicated to him. |
CIT shall not revise the order:
(i) Where an appeal against the order lies to the CIT(A) but has not been made and; (a) The time within which such as appeal may be made has not expired; (b) The assessee has not waived his right of appeal. (ii) Where the order is pending on an appeal before the Deputy Commissioner (Appeals). (iii) Where the order has been made the subject of an appeal to the CIT(A) or Appellate tribunal. |
| 22 | Sec 264 | Revision Order by CIT u/s 264 | On receipt of revision application by the assessee u/s 264, an order shall be passed by the CIT within 1 year from the end of financial year in which such application u/s 264 is made by the assesee. | |
| 23 | Sec 92CA | Reference to Transfer Pricing Officer | Where a reference has been made under sub-section (1) of Sec 92CA to the Transfer Pricing Officer, an order under Sub-section (3) may be made at any time before 60 days prior to the date on which the period of limitation referred to in Sec 153 or 153B expires. | |
| 24 | Sec 92CC | Advance Pricing Agreement —Time limit if agreement becomes Void | Agreement becomes void if obtained through fraud or misrepresentation of facts. If period of limitation after excluding the period from date of agreement till date of declaring it Void, is less then 60 days, such remaining period shall be extended to 60 days. | Advance Pricing Agreement is binding for a period not exceeding 5 consecutive years |
| 25 | Sec 92CD | Time limit for completion of assessment in case APA is applicable for the years for which Returns were already filed | Notwithstanding anything contained in Sec 153 or 153B or Sec 144C; (a) The order of assessment, reassessment or recomputation of total income u/s (3) of Sec 92CD shall be passed within a period of 1 year from the end of the financial year in which the modified return u/s (1) is furnished; (b) The period of limitation as provided in Sec 153 or 153B or Sec 144C for completion of pending assessment or reassessment proceedings referred to in sub-sec (4) shall be extended by a period of 12 months. |
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| 26 | Sec 144C | Dispute Resolution Panel | Notwithstanding anything contained in Sec 153 or 153B, AO shall pass the assessment order u/ss (3) within 1 month from the end of the month in which,- (a) The acceptance is received; or (b) The period of filing of objecions u/s (2) expires—(Within 30 days of receipt of draft order). |
AO to forward of the proposed order of assessment to the eligible assessee if he proposes to make any variation in the income or loss returned which is prejudicial to the interest of the such assessee. |
| 27 | Sec 144C | Issue of directions to AO, on receipt of Objections from eligible assessee | No direction shall be issued after 9 months from the end of the month in which the draft order is forwarded to the eligible assessee. | No direction unless opportunity of being heard is given to the assessee and AO, where such directions are prejudicial to the interest of assessee or revenue, respectively. |
| 28 | Sec 144C | Time limit for completion of assessment on receipt of Directions from Dispute Resolution Panel | Upon receipt of directions, AO shall in confirmity of such directions, complete the assessment without providing any further opportunity of being heard to the assessee, within 1 month from the end of the month in which such direction is received. | Appeal against such order lies to ITAT |
Author can be reached through mail: [email protected]
Disclaimer : The contents of this document are solely for informational purpose. It does not constitute professional advice. Author do not accepts any liability for any loss or damage of any kind arising out of any information in this document nor for any action taken in reliance thereon.
(Republished With Amendments)
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Can I.tax deptt issue notice for Rectification of 2012‐13 and 2015‐16when it has not been filed by assessee.
Very elaborate and informative,thanks
if assessment Order u/s. 143(3) or 144 is passed on last date of time barred i.e. 31-12, but served to the Assessee by Hand Delivery on 05-01, comment on validity of Assessment, is it valid or void
good &very useful article. MANY THANKS. SIR ,i wa nt to know about notice -when how becomes time barred.
what is the time limit for a.o for issue of notice for non filing of TDS return
Very usefull article
Which date of notice is applicable i.e. the date of issuing notice or date of receiving notice ….
Superb .
Sir,
It is very useful.
Regards
I have one query regarding section 273A .. my client has paid the penalty and gone fr 273A application, now cit is restricting himself fr waiver as it will be refund of penalty.
Very Useful and Informative – wonderful gift to your sisters . Happy Raksha Bandhan !!
GOOD.
Very Informative!
Good Compilation!!!
Very useful compilation.. Tks