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Section – 153 - Rationalisation of time limits for completion of assessment, reassessment and re-computation and reducing the time for filing revised return -

 

The existing provision specify time limit for completion of assessment, reassessment and recomputation of cases mentioned therein. The amendment seeks to provide that the for the assessment year 2018-19, the time limit for making an assessment order under section 143 or 144 shall be reduced from existing 21 months to 18 months from the end of the assessment year, and for the assessment year 2019-20 and onwards the said time limit shall be 12 months from the end of the assessment year in which the income was first assessable.

 

Time limit for making the order of assessment, reassessment and recomputation under section 147 in respect of notices served under section 148 on or after 1st April 2019 shall be 12 months from the end of the financial year in which the notice is served.

 

Time limit for making a fresh order in pursuance of an order under section 254,263 and 264 passed or received in financial year 2019-20 onwards shall be 12 months from the end of the financial year in which orders under section 254,263 or 264 is passed.

 

These amendments will take effect from 1st April 2017.

 

Where an order under section 250,254,260,262,263 or 264 requires verification of any issue by way of submission of any document or where an opportunity of being heard is to be provided to the assessee, the time limit relating to fresh assessments as stated above shall be the same.

 

The existing subsection (9) of section 153 provides that where the order of assessment or reassessment was made before 01.06.2016 the provisions relating to the time limit as existing before the commencement of Finance Act, 2016 will apply. The amendment clarifies that if the notice was issued prior to 01.06.2016 and assessment could not be completed due to the extended time as mentioned in explanation 1 to the section, still the provisions as existing before the commencement of Finance Act, 2016 will apply.

These amendments will take effect from 1st June 2016.


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