Time limits

TIME LIMITSTIME LIMITS

By

Shankar BoseInspector of Income-tax

MSTU, Puri

Intimation u/s 143(1)Intimation u/s 143(1)

Intimation should be sent within one year from the end of the Financial year in which the Return was filed.

Assessment u/s 143 / 144Assessment u/s 143 / 144

Notice u/s 143(2) is to be served on the assessee within a period of 6 months from the end of the financial year in which the return is furnished (w.e.f. 01.04.2008)- earlier one year from end of month.

Order-2 Yrs from the end of the relevant Asstt. Yr. in which the income was first assessable(1 year & 9 months for AY 2004-5 to 09-10).

Cases where reference has been Cases where reference has been made to TPOmade to TPO

In Transfer Pricing Officer(TPO) reference cases shall be extended by 12 months.

(Re)Assessment u/s 147(Re)Assessment u/s 147

Time Limit for issue of notice u/s 148

Up to 4 years from the end of the relevant Asstt Year

Beyond 4 years but up to 6 years from the end of the relevant Asstt Year

In cases subject to scrutiny u/s 143(3)/147

Assessment can be reopened whatever is the amount of income escaped

If the escaped income is Rs. 1,00,000 or more for that year ( Approval of CIT/CCIT required)

In other cases Assessment can be reopened whatever is the amount of income escaped

If the escaped income is Rs. 1,00,000 or more for that year ( Approval of JCIT/Addl.CIT required)

(Re)Assessment u/s 147- (Re)Assessment u/s 147- Ss153(2)Ss153(2)

1 year from the end of FY of service.

2 yrs for TPO cases 9 months/21 months for orders

served between 1/4/2005 to 31/3/2010.

Rectification u/s 154 Rectification u/s 154

For filing petition – Within 4 years from the end of the Financial Year, in which the order sought to be rectified was passed.

Where an application for rectification is made by the assessee, on after June 1, 2001, the AO shall pass the order within 6 months from the end of the month in which the application was filed.

When order can be passed after When order can be passed after the Time Limitthe Time Limit

Circular No. 73, dtd January 7, 1972 :The authorities making rectification are authorised by the Board to dispose of an application u/s 154 even after the expiry of time-limit if a valid application had been filed by the assessee within the statutory time-limit but was not disposed of by the concerned authority within the time limit.

Fresh assessment where original Assessment has been Set Aside/ Cancelled u/s 250/254/263/264(Ss 153(2A))

1 year from the end of the F.Y. in which order of S.A. was received / made by CIT

2 Yrs in TPO cases For orders passed/received

between 1/4/2005 to 31/3/2011- 9 months/ 21 months.

Section 153(3)Section 153(3) No Time Limit in the case of a Finding or No Time Limit in the case of a Finding or

Direction in the following cases –Direction in the following cases – a. a. Where the assessment, reassessment or recomputation is made in consequence of or to give effect to any finding or direction contained in an order of appeal or revision under section 250,254,260, 262, 263 or 264 or in an order of any Court in a proceeding otherwise than by way of appeal or reference under the Act ;

b. b. Where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147

Revision u/s 263Revision u/s 263

To pass order within 2 years from the end of the financial year in which the order sought to be revised was passed.

Service of order is not included in the time limit.

The period of limitation commences from the date of order of assessment and not from the date on which order of re-assessment has been passed – Ashoka Buildcon Ltd. Vs CIT[2010] Taxman 29(Bom.)


The time limit is not applicable in the case of revisional order passed on the direction of the Appellate Tribunal, the High Court or the Supreme Court.

In computing the aforesaid period of limitation, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 129 and any period during which any proceeding u/s 263 is stayed by an order or injunction of any Court shall be excluded.


If the Commissioner Acts suo motu u/s 264, the alleged order must be revised within one year from the date of the original order.

If the assessee refers to the CIT, the application must be made within 1 year from the date of communication of order, or the date on which he otherwise came to know, whichever is earlier.


In such case, the CIT can pass an order u/s 264 within 1 year from the end of the Financial Year in which the application for revision was made.

The time limit is not applicable in the case of revisional order passed on the direction of the Appellate Tribunal, the High Court or the Supreme Court.


In computing the aforesaid period of limitation, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 129 and any period during which any proceeding u/s 263 is stayed by an order or injunction of any Court shall be excluded.

Section 153B provides for the time limit for completion of search assessments. It provides that the Assessing Officer;

i. shall make an order of assessment or reassessment in respect of each assessment year, falling within six assessment years under section 153A within a period of 2yrs/21 months (1/4/2005 to 31/3/2009)from the end of the financial year in which the last of the authorizations for search under section 132 or for requisition under section 132A was executed.

TIME LIMITS FOR COMPLETION OF TIME LIMITS FOR COMPLETION OF ASSESSMENT U/S 153B:ASSESSMENT U/S 153B:

Exclusion from TIME LIMITS FOR COMPLETION Exclusion from TIME LIMITS FOR COMPLETION OF ASSESSMENT U/S 153B(Explanation):OF ASSESSMENT U/S 153B(Explanation):

a. the period during which the assessment proceeding is stayed by an order or injunction of any Court; or

b. the period commencing from the day on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section, or

c. the time taken in opportunity to the assessee of being reheard under the proviso to section 129, or

Application made before the Settlement Commission under section 245C is rejected, the period commencing on the date on which such application is made and ending with the date on which the order under subsection (1) of section 245D is received by the Commissioner under sub-section (2) of that section

SETTLEMENT CASESSETTLEMENT CASES

The time limits under section 153 shall not apply to the order of the settlement commission or any order of assessment, reassessment or re-computation required to be made by the assessing officer if the settlement commission directs to do so.

Penalty Ss 275

Within the year of initiation 6 month from end of month of

ITAT/CIT order- whichever later In CIT Appeal cases (appeal order

passed on or after 1/6/2003) one year from the end of year of receipt of order.

THANK YOU!!THANK YOU!!

Time limits

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