Section 153 and Section 153A of Income Tax Act 1961: Assessment Time Limits and Search Cases

Sections 153 and 153A formed part of Chapter XIV of the Income-tax Act, 1961. Section 153 prescribed limitation periods for completing specified assessments, reassessments and recomputations, while Section 153A governed assessments following specified searches or requisitions under the earlier search-assessment regime.

Section 153: Time Limit for Completion of Assessment, Reassessment and Recomputation

Section 153 of the Income-tax Act, 1961 prescribed the statutory outer time limits within which specified assessment orders had to be made. The applicable period depends on the assessment year, the type of proceeding, the date of the relevant notice or appellate/revisional order, and statutory exclusions or extensions.

Regular assessment under Sections 143 and 144

For an assessment year commencing on or after 1 April 2022, Section 153(1), as applicable under the 1961 Act, generally provided a period of 12 months from the end of the assessment year for making an assessment order under Section 143 or Section 144. Earlier assessment years were governed by the time limits specifically prescribed for those years.

Updated return under Section 139(8A)

Section 153(1A) separately dealt with an assessment where an updated return under Section 139(8A) had been furnished. The limitation is computed with reference to the end of the financial year in which the updated return was furnished, subject to the version of the provision applicable to the relevant proceeding.

Reassessment under Section 147

Section 153 also prescribed the period for completing an assessment, reassessment or recomputation under Section 147. Because the reassessment framework and limitation provisions were amended repeatedly, the correct deadline must be determined from the law applicable to the relevant notice and assessment year rather than by applying one period to every case.

Fresh assessment after appellate or revisional order

Where an assessment was set aside or cancelled under an order passed under provisions such as Sections 254, 263 or 264, Section 153 contained a separate limitation framework for making the fresh assessment. It also contained rules governing orders giving effect to appellate, revisional and court directions.

Exclusion of time

Explanation 1 to Section 153 excluded specified periods while computing limitation. Depending on the applicable version of the law, these included periods connected with court stays, special audit proceedings, valuation references, exchange of information, impermissible avoidance arrangement proceedings and other statutorily specified events. The precise exclusion must be calculated from the provision applicable to the particular proceeding.

Section 153A: Assessment in Case of Search or Requisition

Section 153A was a special assessment provision containing a non-obstante clause overriding Sections 139, 147, 148, 149, 151 and 153 for cases falling within its scope. In its later form, it applied where a search under Section 132 was initiated or books of account, documents or assets were requisitioned under Section 132A after 31 May 2003 but on or before 31 March 2021.

For a case covered by Section 153A, the Assessing Officer was required to issue notice for returns for the prescribed assessment years and assess or reassess the total income for the years covered by the provision. Assessments or reassessments that were pending on the date of the qualifying search or requisition could abate in accordance with the second proviso to Section 153A(1).

Six assessment years and extended relevant assessment years

The provision covered six assessment years immediately preceding the assessment year relevant to the previous year in which the search was conducted or requisition made. For qualifying searches or requisitions from 1 April 2017, the law also permitted specified earlier years beyond those six years, subject to statutory conditions, including the prescribed threshold and the requirement concerning income represented in the form of an asset.

Meaning of asset for the extended period

For the extended-period rule in Section 153A, the statutory explanation included assets such as immovable property consisting of land or building or both, shares and securities, loans and advances, and deposits in bank accounts.

Revival of an abated assessment

Section 153A(2) provided for revival of an assessment or reassessment that had abated where a proceeding or order under Section 153A(1) was annulled in appeal or another legal proceeding, subject to the statutory conditions. The provision also stated that, except as otherwise provided in Sections 153A, 153B and 153C, other provisions of the 1961 Act applied to an assessment made under Section 153A.

Search Cases: Section 153A and Later Regimes

Practical Points for Sections 153 and 153A

• Identify the governing Act first. Tax years beginning before 1 April 2026 continue to be governed by the Income-tax Act, 1961 for the proceedings preserved by Section 536 of the Income-tax Act, 2025.
• Check the law applicable on the relevant date. Section 153 was amended repeatedly, so limitation cannot safely be calculated without identifying the assessment year, nature of proceeding and triggering date.
• For Section 153A, check the date of search or requisition. The provision is principally relevant to searches or requisitions up to 31 March 2021.
• Account for statutory exclusions. Court stays, special audits, valuation references and other specified events may alter the limitation computation.
• Read connected provisions together. Depending on the case, Sections 132, 132A, 139, 143, 144, 147 to 151, 153B, 153C and 153D may also be material.

Official Income-tax Resources

For current statutory text, forms, notifications and transition guidance, refer to the official Income Tax Department - Tax Laws portal and the Income Tax e-Filing portal. These official resources should be checked before computing a limitation date or taking procedural action.

Updated: 29 September 2026. This article is a general legal-information resource. Statutory limitation can turn on case-specific dates, exclusions, amendments and transitional provisions.