Section 153B of Income Tax Act "Time-limit for completion of assessment under section 153A"
153B. (1) Notwithstanding anything contained in section
153, the Assessing Officer shall make an order of assessment
or reassessment,-
(a) in respect of each assessment year falling within six
assessment years and for the relevant assessment year or
years referred to in clause (b) of sub-section (1) of
section 153A, within a period of twenty-one months from the
end of the financial year in which the last of the
authorisations for search under section 132 or for
requisition under section 132A was executed;
(b) in respect of the assessment year relevant to the
previous year in which search is conducted under section 132
or requisition is made under section 132A, within a period
of twenty-one months from the end of the financial year in
which the last of the authorisations for search under
section 132 or for requisition under section 132A was
executed:
Provided that in case of other person referred to in
section 153C, the period of limitation for making the
assessment or reassessment shall be the period as referred
to in clause (a) or clause (b) of this sub-section or nine
months from the end of the financial year in which books of
account or documents or assets seized or requisitioned are
handed over under section 153C to the Assessing Officer
having jurisdiction over such other person, whichever is
later:
Provided further that in the case where the last of the
authorisations for search under section 132 or for
requisition under section 132A was executed during the
financial year commencing on the 1st day of April, 2018,-
(i) the provisions of clause (a) or clause (b) of this
sub-section shall have effect, as if for the words
"twenty-one months", the words "eighteen months" had been
substituted;
(ii) the period of limitation for making the assessment or
reassessment in case of other person referred to in section
153C, shall be the period of eighteen months from the end of
the financial year in which the last of the authorisations
for search under section 132 or for requisition under
section 132A was executed or twelve months from the end of
the financial year in which books of account or documents or
assets seized or requisitioned are handed over under section
153C to the Assessing Officer having jurisdiction over such
other person, whichever is later:
Provided also that in the case where the last of the
authorisations for search under section 132 or for
requisition under section 132A was executed during the
financial year commencing on or after the 1st day of April,
2019,-
(i) the provisions of clause (a) or clause (b) of this
sub-section shall have effect, as if for the words
"twenty-one months", the words "twelve months" had been
substituted;
(ii) the period of limitation for making the assessment or
reassessment in case of other person referred to in section
153C, shall be the period of twelve months from the end of
the financial year in which the last of the authorisations
for search under section 132 or for requisition under
section 132A was executed or twelve months from the end of
the financial year in which books of account or documents or
assets seized or requisitioned are handed over under section
153C to the Assessing Officer having jurisdiction over such
other person, whichever is later:
Provided also that in case where the last of the
authorisations for search under section 132 or for
requisition under section 132A was executed and during the
course of the proceedings for the assessment or reassessment
of total income, a reference under sub-section (1) of
section 92CA is made, the period available for making an
order of assessment or reassessment shall be extended by
twelve months:
Provided also that in case where during the course of the
proceedings for the assessment or reassessment of total
income in case of other person referred to in section 153C,
a reference under sub-section (1) of section 92CA is made,
the period available for making an order of assessment or
reassessment in case of such other person shall be extended
by twelve months.
(2) The authorisation referred to in clause (a) and clause
(b) of sub-section (1) shall be deemed to have been
executed,-
(a) in the case of search, on the conclusion of search as
recorded in the last panchnama drawn in relation to any
person in whose case the warrant of authorisation has been
issued; or
(b) in the case of requisition under section 132A, on the
actual receipt of the books of account or other documents or
assets by the Authorised Officer.
(3) The provisions of this section, as they stood
immediately before the commencement of the Finance Act,
2016, shall apply to and in relation to any order of
assessment or reassessment made before the 1st day of June,
2016:
Provided that where a notice under section 153A or section
153C has been issued prior to the 1st day of June, 2016 and
the assessment has not been completed by such date due to
exclusion of time referred to in the Explanation, such
assessment shall be completed in accordance with the
provisions of this section as it stood immediately before
its substitution by the Finance Act, 2016 (28 of 2016).
Explanation.-In computing the period of limitation under
this section-
(i) the period during which the assessment proceeding is
stayed by an order or injunction of any court; or
(ii) the period commencing from the date on which the
Assessing Officer directs the assessee to get his accounts
audited under sub-section (2A) of section 142 and-
(a) ending with the last date on which the assessee is
required to furnish a report of such audit under that
sub-section; or
(b) where such direction is challenged before a court,
ending with the date on which the order setting aside such
direction is received by the Principal Commissioner or
Commissioner; or
(iii) the period commencing from the date on which the
Assessing Officer makes a reference to the Valuation Officer
under sub-section (1) of section 142A and ending with the
date on which the report of the Valuation Officer is
received by the Assessing Officer; or
(iv) the time taken in re-opening the whole or any part of
the proceeding or in giving an opportunity to the assessee
of being re-heard under the proviso to section 129; or
(v) in a case where an application made before the
Income-tax Settlement Commission is rejected by it or is not
allowed to be proceeded with by it, the period commencing
from the date on which an application is made before the
Settlement Commission under section 245C and ending with the
date on which the order under sub-section (1) of section
245D is received by the Principal Commissioner or
Commissioner under sub-section (2) of that section; or
(vi) the period commencing from the date on which an
application is made before the Authority for Advance Rulings
under sub-section (1) of section 245Q and ending with the
date on which the order rejecting the application is
received by the Principal Commissioner or Commissioner under
sub-section (3) of section 245R; or
(vii) the period commencing from the date on which an
application is made before the Authority for Advance Rulings
under sub-section (1) of section 245Q and ending with the
date on which the advance ruling pronounced by it is
received by the Principal Commissioner or Commissioner under
sub-section (7) of section 245R; or
(viii) the period commencing from the date of annulment of a
proceeding or order of assessment or reassessment referred
to in sub-section (2) of section 153A, till the date of the
receipt of the order setting aside the order of such
annulment, by the Principal Commissioner or Commissioner; or
(ix) the period commencing from the date on which a
reference or first of the references for exchange of
information is made by an authority competent under an
agreement referred to in section 90 or section 90A and
ending with the date on which the information requested is
last received by the Principal Commissioner or Commissioner
or a period of one year, whichever is less; or
(x) the period commencing from the date on which a reference
for declaration of an arrangement to be an impermissible
avoidance arrangement is received by the Principal
Commissioner or Commissioner under sub-section (1) of
section 144BA and ending on the date on which a direction
under sub-section (3) or sub-section (6) or an order under
sub-section (5) of the said section is received by the
Assessing Officer,
shall be excluded:
Provided that where immediately after the exclusion of the
aforesaid period, the period of limitation referred to in
clause (a) or clause (b) of this sub-section available to
the Assessing Officer for making an order of assessment or
reassessment, as the case may be, is less than sixty days,
such remaining period shall be extended to sixty days and
the aforesaid period of limitation shall be deemed to be
extended accordingly:
Provided further that where the period available to the
Transfer Pricing Officer is extended to sixty days in
accordance with the proviso to sub-section (3A) of section
92CA and the period of limitation available to the Assessing
Officer for making an order of assessment or reassessment,
as the case may be, is less than sixty days, such remaining
period shall be extended to sixty days and the aforesaid
period of limitation shall be deemed to be extended
accordingly:
Provided also that where a proceeding before the Settlement
Commission abates under section 245HA, the period of
limitation available under this section to the Assessing
Officer for making an order of assessment or reassessment,
as the case may be, shall, after the exclusion of the period
under sub-section (4) of section 245HA, be not less than one
year; and where such period of limitation is less than one
year, it shall be deemed to have been extended to one year.
153C. (1) Notwithstanding anything contained in section
139, section 147, section 148, section 149, section 151 and
section 153, where the Assessing Officer is satisfied that,-
(a) any money, bullion, jewellery or other valuable article
or thing, seized or requisitioned, belongs to; or
(b) any books of account or documents, seized or
requisitioned, pertains or pertain to, or any information
contained therein, relates to,
a person other than the person referred to in section 153A,
then, the books of account or documents or assets, seized or
requisitioned shall be handed over to the Assessing Officer
having jurisdiction over such other person and that
Assessing Officer shall proceed against each such other
person and issue notice and assess or reassess the income of
the other person in accordance with the provisions of
section 153A, if, that Assessing Officer is satisfied that
the books of account or documents or assets seized or
requisitioned have a bearing on the determination of the
total income of such other person for six assessment years
immediately preceding the assessment year relevant to the
previous year in which search is conducted or requisition is
made and for the relevant assessment year or years referred
to in sub-section (1) of section 153A :
Provided that in case of such other person, the reference to
the date of initiation of the search under section 132 or
making of requisition under section 132A in the second
proviso to sub-section (1) of section 153A shall be
construed as reference to the date of receiving the books of
account or documents or assets seized or requisitioned by
the Assessing Officer having jurisdiction over such other
person :
Provided further that the Central Government may by rules
made by it and published in the Official Gazette, specify
the class or classes of cases in respect of such other
person, in which the Assessing Officer shall not be required
to issue notice for assessing or reassessing the total
income for six assessment years immediately preceding the
assessment year relevant to the previous year in which
search is conducted or requisition is made and for the
relevant assessment year or years as referred to in
sub-section (1) of section 153A except in cases where any
assessment or reassessment has abated.
(2) Where books of account or documents or assets seized or
requisitioned as referred to in sub-section (1) has or have
been received by the Assessing Officer having jurisdiction
over such other person after the due date for furnishing the
return of income for the assessment year relevant to the
previous year in which search is conducted under section 132
or requisition is made under section 132A and in respect of
such assessment year-
(a) no return of income has been furnished by such other
person and no notice under sub-section (1) of section 142
has been issued to him, or
(b) a return of income has been furnished by such other
person but no notice under sub-section (2) of section 143
has been served and limitation of serving the notice under
sub-section (2) of section 143 has expired, or
(c) assessment or reassessment, if any, has been made,
before the date of receiving the books of account or
documents or assets seized or requisitioned by the Assessing
Officer having jurisdiction over such other person, such
Assessing Officer shall issue the notice and assess or
reassess total income of such other person of such
assessment year in the manner provided in section 153A.