Time limit for assessment order under sec-144
This query is : Resolved
20 March 2018
An assessment order by the ITO/AO has been passed against my company for AY 2011-12 in the month of March 2014.
Is this order valid as the time limit for assessments under sec-144 is prescribed as 2 years / 21 months in sec-153(1) of IT Act?
Pls advise.
Is this order valid as the time limit for assessments under sec-144 is prescribed as 2 years / 21 months in sec-153(1) of IT Act?
Pls advise.
21 March 2018
it should be time barred as such unless there are additional facts that may lead to additional time under other sub-sections of section 153
21 March 2018
Thanks for the reply.
Can you please elaborate on the facts that can lead to additional time in layman's terms?
Can you please elaborate on the facts that can lead to additional time in layman's terms?
24 March 2018
Can anyone provide some clarification about the "additional facts"?
Thanks
Thanks
02 August 2025
Sure! Here's a simple explanation about the **time limits for assessment orders under Section 144** and what can extend those limits:
---
### Basic Time Limit for Assessment Order under Section 144:
* As per **Section 153(1)** of the Income Tax Act, the **time limit for passing assessment orders** (including under Section 144) is usually:
* **2 years** from the end of the assessment year if it’s a corporate taxpayer (like your company),
* or **21 months** for individuals/HUF (other than companies).
* So for AY 2011-12, the normal time limit would be around March 2014 (which aligns with your March 2014 order).
---
### When can this time limit be extended? ("Additional facts")
The time limit can be extended if certain **exceptions or special circumstances** apply. These include:
1. **If the case is selected for scrutiny:**
* Under **Section 153(3)**, if the case is picked for scrutiny by the Assessing Officer, the time limit to pass the assessment order can be extended to **up to 3 years** from the end of the AY.
2. **If income has escaped assessment:**
* Under **Section 149**, if the AO believes that income has escaped assessment, the time limit can be extended beyond 2 years, up to **6 years** or even **10 years** in cases involving concealment or fraud.
3. **If reassessment or survey action has been initiated:**
* Where reassessment proceedings or survey actions have been taken, extended timelines apply.
4. **If the case involves search/seizure:**
* Under **Section 153A**, time limits are extended for cases arising out of search and seizure.
---
### In simple terms:
* If **none of the above special circumstances apply**, the order passed in March 2014 for AY 2011-12 **should be valid** because it was within the normal 2-year time limit.
* But if your case was under scrutiny, reassessment, or involved escaped income, etc., the AO might have had additional time to issue the order.
---
---
### Basic Time Limit for Assessment Order under Section 144:
* As per **Section 153(1)** of the Income Tax Act, the **time limit for passing assessment orders** (including under Section 144) is usually:
* **2 years** from the end of the assessment year if it’s a corporate taxpayer (like your company),
* or **21 months** for individuals/HUF (other than companies).
* So for AY 2011-12, the normal time limit would be around March 2014 (which aligns with your March 2014 order).
---
### When can this time limit be extended? ("Additional facts")
The time limit can be extended if certain **exceptions or special circumstances** apply. These include:
1. **If the case is selected for scrutiny:**
* Under **Section 153(3)**, if the case is picked for scrutiny by the Assessing Officer, the time limit to pass the assessment order can be extended to **up to 3 years** from the end of the AY.
2. **If income has escaped assessment:**
* Under **Section 149**, if the AO believes that income has escaped assessment, the time limit can be extended beyond 2 years, up to **6 years** or even **10 years** in cases involving concealment or fraud.
3. **If reassessment or survey action has been initiated:**
* Where reassessment proceedings or survey actions have been taken, extended timelines apply.
4. **If the case involves search/seizure:**
* Under **Section 153A**, time limits are extended for cases arising out of search and seizure.
---
### In simple terms:
* If **none of the above special circumstances apply**, the order passed in March 2014 for AY 2011-12 **should be valid** because it was within the normal 2-year time limit.
* But if your case was under scrutiny, reassessment, or involved escaped income, etc., the AO might have had additional time to issue the order.
---
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