RATIONALISATION OF TIME LIMIT FOR ASSESSMENT, REASSESSMENT AND RECOMPUTATION
PROCESSING UNDER SECTION 143(1) BE MANDATED BEFORE ASSESSMENT
May 1, 2016RATIONALISATION OF TIME LIMIT FOR ASSESSMENT IN SEARCH CASES
May 1, 2016In view of increased efficiency within the Department in handling assessments, the following changes in time limits for completion of assessment are proposed:
| Particulars | Existing Time Limit | Proposed Time Limit | |
| Completion of assessment under Section 143 or Section 144 | 2 years from the end of the assessment year in which the income was first assessable | 21 months from the end of the assessment year in which the income was first assessable | |
| Completion of assessment under Section 147 | 1 year from the end of the financial year in which the notice under Section 148 was served | 9 months from the end of the financial year in which the notice under Section 148 was served
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| Fresh assessment pursuant to order under Section 254 or Section 263 or Section 264 | 1 year from the end of the financial year in which the order under Section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, or the order under Section 263 or Section 264 is passed by the Principal Commissioner or Commissioner | 9 months from the end of the financial year in which the order under Section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, or the order under Section 263 or Section 264 is passed by the Principal Commissioner or Commissioner | |
| Particulars | Proposed Time Limit | ||
| Assessing Officer to give effect to an order passed under Section 250 or Section 254 or Section 260 or Section 262 or Section 263 or Section 264 or an order passed by Settlement Commission | 3 months from the end of the month in which order is received or passed, as the case may be, by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner. However, the Principal Commissioner or Commissioner may grant additional period of 6 months to Assessing Officer to give effect to such order, on request made by Assessing Officer in writing that the same is not possible for reasons beyond its control | ||
| However, in respect of cases pending as on 01.06.2016, the time limit for passing such order is proposed to be extended to 31.3.2017. | |||
| Assessment, reassessment or recomputation pursuant to order passed above, excluding order of Settlement Commission, or an order of any court in a proceeding otherwise than by way of appeal or reference under the Act | 12 months from the end of the month in which such order is received by the Principal Commissioner or Commissioner | ||
| However, for cases pending as on 01.06.2016, the time limit for taking requisite action is proposed to be 31.3.2017 or twelve months from the end of the month, in which such order is received, whichever is later. | |||
| Assessment in case of a partner of the firm in consequence of an assessment made on the firm under Section 147 | 12 months from the end of the month in which the assessment order in the case of the firm is passed | ||
| However, for cases pending as on 01.06.2016, the time limit for taking requisite action is proposed to be 31.3.2017 or twelve months from the end of the end of the month, in which order in case of firm is passed, whichever is later. | |||
It is further proposed that where assessment proceedings are stayed by any court or where a reference for exchange of information has been made by the competent authority and consequent to this, where the time available to Transfer Pricing Officer is less than 60 days, it shall be extended to 60 days and consequential changes shall be made in time limit for completion of assessment or reassessment by the Assessing Officer
The provisions of Section 153, as they stood before amendments by Finance Act, 2016, shall apply to and in relation to any order of assessment, reassessment or recomputation made before the 01.06.2016.
The amendment will take effect from 1st day of June, 2016.