Time available to ito for passing an order
This query is : Resolved
02 September 2013
An order was passed by an ITO for AY 2004-05 u/s 143(3) of income tax act, 1961. The assessee preferred an appeal against this order with the CIT (Appeals). The CIT confirmed the order of the ITO. The assessee preferred an appeal with I T A T.
I T A T issued an order throwing out the CIT / ITO order to the extent where the ITO depended on a divisional valuation report as invalid as per covered judicial pronouncements.
I T A T also asked the ITO to ensure that no double taxation takes place in the case and that the correct income be charged to the tax.
NOW:
How much time does the ITO has from say August 2013 when this order was handed over to him ?
I T A T issued an order throwing out the CIT / ITO order to the extent where the ITO depended on a divisional valuation report as invalid as per covered judicial pronouncements.
I T A T also asked the ITO to ensure that no double taxation takes place in the case and that the correct income be charged to the tax.
NOW:
How much time does the ITO has from say August 2013 when this order was handed over to him ?
02 September 2013
u have not mentioned under which sec ITO had passed order in 2004-05.
03 September 2013
Sir the order was passed u/s143(3) of IT Act,1961.
03 September 2013
Then it will be as per sec 143(3) only but it will be increased to the extent the case was with ITAT.
Refer sec 149,150 for more on time limits.
Refer sec 149,150 for more on time limits.
03 September 2013
Sir,
this answer is good for a professional who already is aware that the time lies in some section or other. You have to be specific.The case was filed with ITAT in february 2013 and heard on 20th june and judgment pronounced on 16tj july 2013 and circulated the order in first week of august. so effectively the file was with them for 6 months.
this answer is good for a professional who already is aware that the time lies in some section or other. You have to be specific.The case was filed with ITAT in february 2013 and heard on 20th june and judgment pronounced on 16tj july 2013 and circulated the order in first week of august. so effectively the file was with them for 6 months.
02 August 2025
Thanks for providing the details.
Given the scenario, here’s a **clear and specific answer** regarding the **time available to the ITO** for **passing a fresh assessment order** as per the direction of the **Income Tax Appellate Tribunal (ITAT)**:
---
### 🧾 **Background Recap:**
* Original order under **Section 143(3)** for AY 2004–05.
* Appeal filed → CIT(A) upheld the order.
* Further appeal to **ITAT**.
* ITAT **set aside** certain parts of the assessment and **remanded** the matter back to the **Assessing Officer (AO)/ITO** with direction to re-compute income **excluding the DVO's report** and **avoiding double taxation**.
---
### 📌 **Applicable Section:**
**Section 153(3)** of the Income Tax Act, 1961 deals with **time limits for giving effect to ITAT/CIT(A) orders**.
> As per **Section 153(3)**:
> When an assessment or reassessment is made **in consequence of or to give effect to any finding or direction** in the order of an appellate/revisionary authority or Tribunal (like ITAT), **the AO must pass the order within 12 months** from the **end of the month in which the order is received by the Principal Commissioner or Commissioner**.
---
### ✅ **Time Limit in Your Case:**
* ITAT order passed: **16th July 2013**
* Assumed date of **receipt by the CIT/AO**: say, **5th August 2013**
* Therefore, the AO must pass the order **by 31st August 2014** (i.e., **12 months** from the end of the month of receipt)
---
### 🕑 **Important Notes:**
* This timeline applies only if the **ITAT’s order involves a finding/direction** under Section 254 that necessitates re-assessment.
* If the ITAT order **did not set aside the entire assessment**, but only directed modification (partial remand), **Sec 153(5)** might apply (for giving effect to appellate order **without making a fresh assessment**). In such a case, time allowed is **3 months** from the end of the month of receipt — extendable by another 6 months.
---
### ✅ **Conclusion:**
Since ITAT remanded part of the order with specific direction:
* **Section 153(3)** applies
* **Time available: 12 months** from the end of month of receipt of the order
* So, if received in **August 2013**, the ITO/AO must complete reassessment **by 31st August 2014**
---
Let me know if the order was **fully set aside** or **partially modified**, or if you need a reference to a case law or circular explaining this—happy to assist further.
Given the scenario, here’s a **clear and specific answer** regarding the **time available to the ITO** for **passing a fresh assessment order** as per the direction of the **Income Tax Appellate Tribunal (ITAT)**:
---
### 🧾 **Background Recap:**
* Original order under **Section 143(3)** for AY 2004–05.
* Appeal filed → CIT(A) upheld the order.
* Further appeal to **ITAT**.
* ITAT **set aside** certain parts of the assessment and **remanded** the matter back to the **Assessing Officer (AO)/ITO** with direction to re-compute income **excluding the DVO's report** and **avoiding double taxation**.
---
### 📌 **Applicable Section:**
**Section 153(3)** of the Income Tax Act, 1961 deals with **time limits for giving effect to ITAT/CIT(A) orders**.
> As per **Section 153(3)**:
> When an assessment or reassessment is made **in consequence of or to give effect to any finding or direction** in the order of an appellate/revisionary authority or Tribunal (like ITAT), **the AO must pass the order within 12 months** from the **end of the month in which the order is received by the Principal Commissioner or Commissioner**.
---
### ✅ **Time Limit in Your Case:**
* ITAT order passed: **16th July 2013**
* Assumed date of **receipt by the CIT/AO**: say, **5th August 2013**
* Therefore, the AO must pass the order **by 31st August 2014** (i.e., **12 months** from the end of the month of receipt)
---
### 🕑 **Important Notes:**
* This timeline applies only if the **ITAT’s order involves a finding/direction** under Section 254 that necessitates re-assessment.
* If the ITAT order **did not set aside the entire assessment**, but only directed modification (partial remand), **Sec 153(5)** might apply (for giving effect to appellate order **without making a fresh assessment**). In such a case, time allowed is **3 months** from the end of the month of receipt — extendable by another 6 months.
---
### ✅ **Conclusion:**
Since ITAT remanded part of the order with specific direction:
* **Section 153(3)** applies
* **Time available: 12 months** from the end of month of receipt of the order
* So, if received in **August 2013**, the ITO/AO must complete reassessment **by 31st August 2014**
---
Let me know if the order was **fully set aside** or **partially modified**, or if you need a reference to a case law or circular explaining this—happy to assist further.
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