Section 153B provides for the time limit within which the
assessment or reassessment under section
153A has to be made.
Text of section 153B
(1) TIME-LIMIT
FOR COMPLETION OF ASSESSMENT UNDER SECTION 153A
153B. (1) Notwithstanding anything
contained in section 153, the Assessing Officer shall make an order of assessment or reassessment,—
(a)
in respect of each assessment year
falling within six assessment years (2)[and for the relevant assessment years] referred to in
clause (b) of sub-section
(1) of section 153A, within a period of twenty-one months from the end of the financial
year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed;
(b)
in respect of the assessment year
relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A, within a period of two years from the end of the financial
year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed :
Provided that in case of other person
referred to in section 153C, the period of limitation for making the assessment or
reassessment shall be the period as referred to in clause (a) or clause (b) of this sub-section or one year from the end of the financial
year in which 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:
[3]Provided further that in the case where the last of the authorisations
for search under section 132 or for requisition under section 132A was executed during the financial year
commencing on the 1st day of April, 2018],—
(i)
the provisions of clause (a) or clause
(b) of this sub-section shall have effect as if for the words "twenty-one-months"
the words "eighteen months" had been substituted;
(ii)
the period of limitation for making the
assessment or reassessment in case of other person referred to in section 153C, shall be the period of twenty-one months from the end of the
financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed or nine months from the end of the
financial year in which 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:
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Provided
also that
in the case where the last of the authorisations for search under section 132
or for requisition under section 132A was executed during the financial year
commencing on or after the 1st day of April, 2019,—
(i) the provisions of clause (a) or clause (b)
of this sub-section shall have effect, as if for the words "twenty-one
months", the words "twelve months" had been substituted;
(ii) the period of limitation for making the
assessment or reassessment in case of other person referred to in section
153C, shall be the period of twelve months from the end of the financial year
in which the last of the authorisations for search under section 132 or for
requisition under section 132A was executed or twelve months from the end of
the financial year in which 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:
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Provided also that in case where the
last of the authorisations for search under section 132 or for requisition
under section 132A was executed and during the course of the proceedings for
the assessment or reassessment of total income, a reference under sub-section
(1) of section 92CA is made, the period available for making an order of
assessment or reassessment shall be extended by twelve months:
Provided also that in case where
during the course of the proceedings for the assessment or reassessment of
total income in case of other person referred to in section 153C, a reference
under sub-section (1) of section 92CA is made, the period available for making
an order of assessment or reassessment in case of such other person shall be
extended by twelve months.';
(2) The authorisation referred to in clause (a) and clause (b) of sub-section (1) shall be deemed
to have been executed,—
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(a)
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in the case of search, 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; or
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(b)
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in the case of requisition under section 132A, on the actual
receipt of the books of account or other documents or assets by the
Authorised Officer.
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(3) The provisions of this
section, as they stood immediately before the commencement of the Finance Act,
2016, shall apply to and in relation to any order of assessment or reassessment
made before the 1st day of June, 2016.
[4]Provided that where a notice under section 153A or section 153C has been
issued prior to the 1st day of June, 2016 and the assessment has not been
completed by such date due to exclusion of time referred to in the Explanation,
such assessment shall be completed in accordance with the provisions of this
section as it stood immediately before its substitution by the Finance Act,
2016 (28 of 2016).
Explanation.—In computing the period of limitation under this section—
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(i)
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the period during which the assessment proceeding is stayed by
an order or injunction of any court; or
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(ii)
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the period commencing from the date on which the Assessing
Officer directs the assessee to get his accounts audited under sub-section
(2A) of section 142 and—
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(a)
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ending with the last date on which the assessee is required to
furnish a report of such audit under that sub-section; or
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(b)
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where such direction is challenged before a court, ending with
the date on which the order setting aside such direction is received by the
Principal Commissioner or Commissioner; or
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(iii)
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the period commencing from the date on which the Assessing
Officer makes a reference to the Valuation Officer under sub-section (1) of
section 142A and ending with the date on which the report of the Valuation
Officer is received by the Assessing Officer; or
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(iv)
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the time taken in re-opening the whole or any part of the
proceeding or in giving an opportunity to the assessee of being re-heard
under the proviso to section 129; or
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(v)
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in a case 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 period commencing from the date on which an application is
made before the Settlement Commission under section 245C and ending with the
date on which the order under sub-section (1) of section 245D is received by
the Principal Commissioner or Commissioner under sub-section (2) of that
section; or
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(vi)
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the period commencing from the date on which an application is
made before the Authority for Advance Rulings under sub-section (1) of
section 245Q and ending with the date on which the order rejecting the
application is received by the Principal Commissioner or Commissioner under
sub-section (3) of section 245R; or
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(vii)
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the period commencing from the date on which an application is
made before the Authority for Advance Rulings under sub-section (1) of
section 245Q and ending with the date on which the advance ruling pronounced
by it is received by the Principal Commissioner or Commissioner under
sub-section (7) of section 245R; or
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(viii)
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the period commencing from the date of annulment of a proceeding
or order of assessment or reassessment referred to in sub-section (2) of
section 153A, till the date of the receipt of the order setting aside the
order of such annulment, by the Principal Commissioner or Commissioner; or
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(ix)
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the period commencing from 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 and
ending with the date on which the information requested is last received by
the Principal Commissioner or Commissioner or a period of one year, whichever
is less; or
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(x)
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the period commencing from the date on which a reference for
declaration of an arrangement to be an impermissible avoidance arrangement is
received by the Principal Commissioner or Commissioner under sub-section (1)
of section 144BA and ending on the date on which a direction under
sub-section (3) or sub-section (6) or an order under sub-section (5) of the
said section is received by the Assessing Officer,
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shall be excluded:
Provided that where immediately after the
exclusion of the aforesaid period, the period of limitation referred to in
clause (a) or clause (b) of this 1[sub-section] available to the
Assessing Officer for making an order of assessment or reassessment, as the
case may be, is less than sixty days, such remaining period shall be extended
to sixty days and the aforesaid period of limitation shall be deemed to be
extended accordingly.
Provided further that where the period available to the Transfer Pricing Officer is
extended to sixty days in accordance with the proviso to sub-section (3A) of
section 92CA and the period of limitation available to the Assessing Officer
for making an order of assessment or reassessment, as the case may be, is less
than sixty days, such remaining period shall be extended to sixty days and the
aforesaid period of limitation shall be deemed to be extended accordingly.
(5) Provided also that where a proceeding before the Settlement Commission abates
under section 245HA, the period of limitation available under this section to
the Assessing Officer for making an order of assessment or reassessment, as the
case may be, shall, after the exclusion of the period under sub-section (4) of
section 245HA, be not less than one year; and where such period of limitation
is less than one year, it shall be deemed to have been extended to one year.
KEY
NOTE
[1] Substituted
by the Finance Act, 2016, with effect from 01.06.2016
[2]
Inserted by Finance Act, 2017, with effect from 01.04.2017
[3] Second to fifth provisos substituted for the
second and third provisos
[4] Inserted by Finance
Act, 2017, with effect from 01.06.2016
[5] Inserted
by Finance Act, 2017, with effect from 01.04.2017
Time limit for Passing assessment order
under section 153A [Section 153B]
Six assessment years
immediately preceding the assessment years relevant to the previous year in
which search is conducted or requisition is made and of the relevant assessment
year or years and assessment year relevant to previous year in which search is
conducted or requisition is made.
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Date when last of authorization under
section 132/132A was executed
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Time limit
(to be determined from the end of the
financial year in which last of the authorisations under section 132/ 132A
was executed)
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Before 01.06.2016
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2 years from the end of Financial year
in which such last authorization was executed
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During 01.06.2016 to 31.03.2018
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21 months from the end of Financial
year in which such last authorization was executed *
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During Financial year
2018-19
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18 months from the end of Financial
year in which such last authorization was executed *
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During Financial year
2919-29 & onwards
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12 months from the end of Financial
year in which such last authorization was executed *
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Time limit for Passing assessment order
under section 153C [Section 153B]
[i.e.
IN CASE OF OTHER PERSON REFERRED TO IN SECTION 153C]
Six assessment years
immediately preceding the assessment years relevant to the previous year in
which search is conducted or requisition is made and relevant assessment year
or years and assessment year relevant to previous year in which search is
conducted or requisition is made.
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Date when last of authorization under
section 132/132A was executed
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Alternative time limit for action under
section 153C (to be determined from the end of the financial year in which
books of account etc. are handed over under section 153C to the concerned
Assessing Officer)
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Before 01.06.2016
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(a) 36 Months from the end of Financial
in which such last authorization was executed, or
(b) 24 Months from the end of Financial
in which books of accounts etc. are handed over under section 153C to the
concerned Assessing Officer.
Ø
Whichever is later
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During 01.06.2016 to 31.03.2018
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(a) 21 Months from the end of Financial
in which such last authorization was executed, or
(b)
9 Months from the end of Financial in which books of accounts etc. are
handed over under section 153C to the concerned Assessing Officer.*
Ø
Whichever is later
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During Financial year
2018-19
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(a) 18 Months from the end of Financial
in which such last authorization was executed, or
(b) 12 Months from the end of Financial
in which books of accounts etc. are handed over under section 153C to the
concerned Assessing Officer.*
Ø
Whichever is later
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During Financial year
2919-20 & onwards
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(a) 12 Months from the end of Financial
in which such last authorization was executed*, or
(b) 12 Months from the end of Financial
in which books of accounts etc. are handed over under section 153C to the
concerned Assessing Officer.*
Ø
Whichever is later
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*
Where a reference is made under section 92CA(1) to TPO during assessment/
reassessment proceedings, the period available for assessment/ reassessment
shall be extended by 12 months.
The time limit so
provided in section 153B is extended in following circumstances:
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EXTENSIONS
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S. No.
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Situation
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Time Extended for
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1.
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Opportunity of re-heard given under
section 129.
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The time taken for reopening the whole
or part of the proceedings.
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2.
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Court grants injunction of assessment
proceedings.
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The period during which the stay is in
force.
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3.
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Special Audit has been directed under
section 142(2A).
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The time allowed by the Assessing
Officer to furnish the report of such special audit.
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4.
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Application is made to Settlement
Commission under section 245 and the same is rejected.
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The period commencing from the day when
the application is made & ending on the day on which rejection order is
received by the Principal Commissioner or Commissioner.
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5.
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Application is made to Authority for
Advance Ruling under section 245Q and the same is rejected / pronounced.
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The period commencing from the day when
the application is made & ending on the day on which rejection order /
pronouncement is received by the Principal Commissioner or Commissioner.
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6.
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Annulment of proceeding or order of
assessment or reassessment as per section 153A(2)
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The period commencing from the date of
annulment till the date of receipt of setting aside annulment order by
Principal Commissioner or Commissioner.
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7.
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Reference for exchange of information
is made by competent authority referred in section 90 or 90A
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The period commencing from date of
making reference till the date of receipt of information by Principal
Commissioner or Commissioner or period of six months, whichever is less
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Where the time limit
available with the assessing officer is less than 60 days after exclusion of
the aforesaid period [Proviso to Section 153B]
The proviso further states that where the time limit available
with the assessing officer is less than 60 days after exclusion of the
aforesaid period, the time limit would be extended upto 60 days.
FOR EXAMPLE
Where the assessment is getting time-barred on 30.06.2019 and an
order of injunction is made on 15.06.2019 where the time limit available with
the assessing officer is less than 60 days after exclusion of the aforesaid
period staying the assessment proceedings and is vacated on 25.06.2019, the
assessing officer would get a period of 60 days commencing from 26.06.2019 even
though the stay was only for a period of 10 days.
When will authorisation
referred to in section 153B(1) be deemed to have been executed [Section
153B(2)]
The authorisation referred to in section 153B(1)(a) and (b)
shall be deemed to have been executed,—
(a) in the case of search, 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; or
(b)
in the case of requisition under section 132A, on the actual receipt of the
books of account or other documents or assets by the Authorised Officer.
Old provisions of section 153B shall be
applicable in certain cases [Section 153B(3)]
The
provisions of section 153B, as they stood immediately before the commencement
of the Finance Act, 2016, shall apply to and in relation to any order of
assessment or reassessment made before 01.06.2016
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