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Calculation of time limit u/s 147

Sujit Talukder (service) (719 Points)

20 October 2011

I have a query on calculation of time limit u/s 147. It states “no action shall be taken u/s 147 after the expiry of four years from the end of the relevant assessment year….” So, for Previous year 2005-06, the relevant Assessment year is 2006-07. What is the time limit with which action u/s 147 can be taken? Is it Assessment year 2010-11 or 2011-12? If it is 2011-12, then please clarify also.

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8 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 20 October 2011

its upto 31.03.2011...............

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 20 October 2011

Last date is 31.03.11 but if the escaped income is more than 1,00,000/- then 31.03.13. refere section 149 given here under

149. Time limit for notice

[(1) No notice under section 148 shall be issued for the relevant assessment year,—

5[(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.]

Explanation.—In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section.]

(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.

(3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year.

Sujit Talukder (service) (719 Points)
Replied 20 October 2011

Thanks for the reply.

CA Mangesh Chitale (B. Com. A.C.A. DISA (ICAI) DIRM (ICAI)) (245 Points)
Replied 20 October 2011

If the said assessee was assessed u/s 143(2) originally, then AO can not reopen assessment after 31.3.2011. Also ask for 'Reason to belive' for income escaping assessment to AO.

rajesh ghatad (Sr. Account Manager) (27 Points)
Replied 21 November 2011

if an assessment completed for the respective year, is there any chance to reopen the assement procedding u/s147.

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 21 November 2011

Yes , if an assessment is done under sec 143 (3) and all fundamental requirements of sec 147 are met wit then cases can be reopened u/s 147 but it be should be withing time limit as discussed above .

rajesh ghatad (Sr. Account Manager) (27 Points)
Replied 21 November 2011

whether they suppose to give an , reason for the same, and if we did not attended the hearing in the given time , should it liable for exparti assesment u/s 144.