TIME LIMITS FOR ISSUANCE OF NOTICES, ORDERS UNDER DIFFERENT SECTIONS OF INCOME TAX ACT, 1961
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 (with November 2015 attempt), 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 ROI 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 AY. | If Assessee fails to repond to notice issued u/s 142(1)(i), than AO can make Best Judgemnt Assessment u/s 144. |
| 2 | Sec 142(2A) | Special Audit | At any Stage of proceedings pending before AO, notice for SPECIAL AUDIT can be issued, but not after completion of proceedings. Aggregate time period of furnishing report post extension, if any granted by AO shall not exceed 180 days from the original date of direction received by the assessee. AO to consider nature and complexity of the accounts, volume of accounts, doubts about correctness of accounts, multiplicity of transactions in the accounts or specialised nature of business activity of the assessee and interest of the Revenue. | No Appeal can be filed against direction for audit , only WRIT PETITION and thereafter SPECIAL LEAVE PETITION. |
| 3 | Sec 143(1) | Intimation of Return | No intimation shall be sent to assessee 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). |
| 4 | 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 only be made, when assessee has filed ROI. |
| 5 | Sec 153 | Time limit for making Assessment Order under Sec 143(3) | No order of assessment/ reassessment under section 143(3) shall be made after the expiry of 2 years from the end of relevant Assessment Year. | Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then 3 years from the end of relevant Assessment Year. |
| 6 | Sec 153 | Time limit for making Assessment Order under Sec 144 | No order of assessment/ reassessment under section 144 shall be made after the expiry of 2 years from the end of relevant Assessment Year. No SCN is required to be issued, where a notice under Sec 142(1)(i) has already been issued to the assessee and the same has not been complied with. |
Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then 3 years from the end of relevant Assessment Year. |
| 7 | 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 toi 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. |
| 8 | 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. | AO appoint can appoint a person in India as the agent of Non Resident by passing an Order under Sec 163(1). Appeal lies to CIT(A) against such Order. |
| 9 | 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 under Sec 147 in consequence of or in order to give effect to the finding or direction contained in an order of Supreme Court passed under Sec 262. But to give effect of retrospective amendments through Finance Acts, Notices under Sec 148 can be issued within the time limits prescribed under Sec 149(1). Sec 150 shall not apply in such cases. |
Notice under Sec 148 can be issued at any time for the purpose of making assessment or reassessment under Sec 147 in consequence of or in order to give effect to the finding or direction contained in an order passed under Sec 250, 254, 263, 264. |
| 10 | Sec 148 | Time limit for issuance of Notice under Sec 143(2) in response to Returns filed under Sec 148 | In response to returns filed under Sec 148 notice, the notice under Sec 143(2) must be served within 6 months from the end of financial year in which return was filed, otherwise assessment/ assessment under Sec 147 shallbe void. | If assessee demands the reasons recorded by AO for issue of notice, AO is bound to supply in writing, otherwise AO cannot proceed for assessment. |
| 11 | Sec 153(2) | Order of assessment/ reassessment u/s 147 | No order of assessment/ reassessment u/s 147 shall be made after the expiry of 1 year from the end of financial year in which notice u/s 148 was served on the assessee. | Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then 2 years from the end of the financial year in which notice u/s 148 was served. |
| 12 | Sec 153(2A) | Time limit for completion of Fresh assessment where original assessment was cancelled or set aside under Sec 254(ITAT), 263 or 264(CIT) | Where an assessment is cancelled or set aside by an order under section 254, 263 or 264 and a direction is given to the AO in such Order to make a fresh assessment, then such fresh assessment shall not be made after the expiry of 1 year from the end of financial year in which order u/s 254 received by CIT or Order u/s 263 or 264 is passed by the CIT. | Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then 2 years from the end of financial year in which order u/s 254 is received by the CIT or u/s 263 or 264 was passed by the CIT. |
| 13 | Sec 153(3)(a) | No Time limit for completion of assessment or reassessment | In case assessment is not cancelled/set aside but a direction is given u/s 250, 254, 263 or 264 as a result of which income of any assessment year escapes assessment, then there is no time limit for making assessment/ reassessment . | Also applicable , where in case of a firm, an assessment is made on the partner of the firm in consequence of an assessment or reassessment made on the firm u/s 147. |
| 14 | 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. |
| 15 | 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 recification application shall be deemed to be allowed in favour of assessee. |
| 16 | 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 2 years 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 2 years from the end of the financial year in which search was completed. |
Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then 3 years from the end of financial year in which search was completed. |
| 17 | Sec 153C | Time limit for completion of assessment u/s 153A in case of other person referred u/s 153C | AO shall make an order of assessment/ reassessment, as follows: (a) (i) in respect of each assessment year falling within 6 assessment years referred to in clause (b) of Sec 153A, within a period of 2 years from the end of the financial year in which search was completed; (ii) 1 year from the end of the financial year in which books of accounts, assets are handled over u/s 153C to the AO having jurisdiction over such other person; which ever is later. (b) (i) in respect of the assessment year relevant to the previous year in which search is conducted under Sec 132, within a period of 2 years from the end of the financial year in which search was completed. (ii) 1 year from the end of the financial year in which books of accounts, assets are handled over u/s 153C to the AO having jurisdiction over such other person; which ever is later. |
Where a reference has been made to Transfer Pricing Officer to determine Arm's Length Price, then the said period gets extended by 1 year under both cases. |
| 18 | Sec 153(4) | Time limit for completion of Assessment/ Reassessment which revives u/s 153A(2) | Notwithstanding the time limits for making assessments/ reassessments under Sec 143(3)/ 144/147 given in Sec 153 and notwithstanding the time limits given in Sec 153B, the order of assessment or reassessment relating to any AY, which stands revived u/s 153A(2) shall be made; (a) within 1 year from the end of the month of such revival, or (b) within the time period specified in Sec 153; (c) within the time period specified in Sec 153B; whichever is later. |
Revival takes place on the date of receipt of order of annulment by CIT |
| 19 | 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. |
| 20 | 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 anf Commissioner. |
| 21 | 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. |
| 22 | Sec 245HA | Abatement of Proceedings before Settlement Commission | Proceedings before Settlement Commission shall abate: (i) Where an application made under Sec 245C has been rejected u/s 245D(1)---(To be rejected within 7 days maxi). (ii) Where an application made under Sec 245C has been declared as invalid u/s 245D(2C)---(To be declared as invalid maxi within 45 days of receipt of application). (iii) In respect of any other application--when Settlement Order was not passed within the time specified u/s 245D(4A)---(To be passed within 18 months from the end of the month in which settlement application was received). |
The application shall abate on: (i) On the date the application was rejected; (ii) On the last date of the month in which application declared invalid; (iii) On the date on which prescribed time expires, respectively. |
| 23 | Sec 245HA | Time limit to complete assessment in case Settlement abates u/s 245HA | Period from date of application of Settlement Commission till date of its abatement shall be excluded for determining period of limitation. | After excluding the period from date of application of Settlement Commission till date of its abatement, if period of limitation available to AO u/s 149 and 153 becomes less then 1 year, then it shall be deemed to have been extended to 1 year. |
| 24 | Sec 273A | CIT possess the power to reduce the penalty imposed or imposable u/s 271(1) (c) | There is no time limit for making an application u/s 273A and also, there is no time limit for passing an order u/s 273A. | CIT can exercise power u/s 273A even of assessee has challenged the penalty order in any appellate proceedings or before any court. CIT can reduce/ waive penalty even if paid, through refund. |
| 25 | Sec 275 | Time limit for passing of Penalty Order in case of Concealment of Income | (A) Where an appeal has been filed against the assessment order to CIT(A) or ITAT; (i) Where order is passed by the CIT(A) and no appeal is made to ITAT---1 year from the end of financial year in which order of CIT(A) is received by the CIT. (ii) Where Order is passed by the ITAT---6 months from the end of the month in which order of ITAT is received by the CIT. (B) Where Revision application has been made u/s 264---6 months from the end of the month in which revision order u/s 264 is passed. (C) Where no appeal has been filed against the assessment order and no application made for revision u/s 264, later of; (i) End of the financial year in which assessment proceedings are completed; or (ii) 6 months from the end of the month in which penalty proceedings are initiated. |
Penalty order for other than Concealment of Income can be passed within 6 months from the end of the month in which penalty proceedings were initiated. |
| 26 | Sec 281B | Provisional Attachment of Property to protect interest of the Revenue | AO can provisonally attach by an order in writing, property belonging to the assessee but with the prior approval of CCIT or CIT for a period of 6 months. However, CCIT, CIT, DG, D for reasons to be recorded in writing extend the aforesaid period further as he thinks fit. | But the total period of extension shall not in any case exceed 2 years or 60 days after the date of order of assessment / reassessment, whichever is later. |
| 27 | Sec 285 | Submission of Statement by a Non Resident having Liason office | Every person being Non resident having a liason office in India set up in accordance with the guidelines issued by the RBI under FEMA,1999 shall, in respect of its activities in a financial year, prepare and deliver to the respective AO, within 60 days from the end of such financial year. | Format and content of statement shall be as prescribed. |
| 28 | 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] |
| 29 | Sec 250 | Time limit for issue of Order by CIT(A) | Where it is possible CIT(A), MAY hear and decide the appeal withina 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 im its direction. |
| 30 | Sec 254 | Order of Stay by ITAT | ITAT may after considering the merits of the application made by the assessee, pass an order of stay in any proceedings relating to an appeal filed under Sec 253, for a period not exceeding 180 days from the date of such order and the Appellate Tribunal shall dispose of the appeal within the said period os stay specified in that order. Provided that when appeal is not so disposed off in within said period, ITAT may on an application made in this behalf by the assessee and on being satisfied that the delay in disposing of the appeal is not attributable to the assessee, extend the period of stay. However, the aggregate period of stay shall not exceed 365 days. |
If appeal is not disposed within time allowed, maxi period of 365 days then the order of stay shall stand vacated after the expiry of such period, even if delay in disposing of the appeal is not attributabe to the assessee. |
| 31 | 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. | Other party to file Memorandum of cross Objections to the ITAT within 30 days in Form 36A. |
| 32 | Sec 254 | Time limit for issuance of Order by ITAT | Where it is possible ITAT, MAY hear and decide the appeal within a period of 4 years from the end of financial in which such appeal is filed before him under Sec 253. | This time limit is not mandatory, its directory for ITAT. |
| 33 | Sec 254(2) | Rectification of mistake by ITAT | The ITAT may, at any time within 4 years from the date of the order, with a view to rectify any mistake apparent from the record, amend any order passed by it u/s 254(1). | If application for rectification is made within 4 years, then rectification order can be passed u/s 254(2), even after 4 years but to the advantage of the assessee. |
| 34 | 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. |
| 35 | 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 this secton can be passed at any time to give effect to the findings or directions contained in an order of the Supreme Court. | Against order passed u/s 263 an appeal can be filed to ITAT. |
| 36 | Sec 264 | Revision application u/s 264 | CIT cannot on his own motion revise any order if the order has been made more than 1 year previously, but where an application is made by the assessee, the application shall filed 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 has been made the subject of an appeal to the CIT(A). |
| 37 | 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. No appeal is possible against such order, only remedy available is WRIT PETITION or SLP. | In case of application, if revision order is not passed u/s 264 within 1 year from the end of financial year in which such application u/s 264 is made by the assesee, then it shall be deemed that the reliefs claimed by the assessee in the application have been allowed. |
| 38 | 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. | Determination of ALP, previous approval of CIT is required |
| 39 | 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 then the remaning period shall be extended to 60 days accordingly. | APA is binding for a period not exceeding 5 consecutive years |
| 40 | 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(DRP); (a) The order of assessment, reassessment or recomputation of total income u/ss (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/ss (1) is furnished; (b) The period of limitation as provided in Sec 153 or 153B or Sec 144C(DRP) for completion of pending assessment or reassessment proceedings referred to in sub-sec (4) shall be extended by a period of 12 months. |
The APA is final, no appeal is possible to CIT(A). CIT cannot reopen under Sec 263, also AO cannot reopen under Sec 147. |
| 41 | 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/ss (2) expires---(Within 30 days of receipt of draft order). |
AO to forward of the proposed order od 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. |
| 42 | 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 unles opportunity of being heard is given to the assessee and AO, where such directions are prejudicial to the interest of assessee or revenue, respectively. |
| 43 | Sec 144C | Time limit for completion of assessment on receipt of Directions from DRP | 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 |
Welcome to the value additions to the article.
Thanks & Regards
Govind Narayan Sharma
On the auspicious occasion of Rakshabandhan, I dedicate this article to my 4 sweet Sisters.
Author can be reached through mail: govindnaraynsharma@gmail.com
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.
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