ASSESSMENT PROCEDURES - TIME LIMITS

Sr. No Section 1 139(1) Particulars Due Dates for filing of Income-tax Returns (i) For Companies (ii) A person whose accounts are required to be audited under this Act or under any other law (iii) Working Partner of the firm whose accounts are so required to be audited In case of any other Assessee 2 139(3) Loss Return (Other than loss under the head House Property, Unabsorbed Depreciation, Capital Expenditure Expenditure on Scientific Research & Capital Expenditure on Promotion of Family Planning) Belated Return Time Limits

30th September of the relevant Assessment Year

31st July of the relevant Assessment Year As per Sec 80, Loss return has to be filed on the due dates as mentioned above in order to carry forward the said loss

3 139(4)

One year from the relevant Assessment Year or before the completion of the assessment whichever is earlier One year from the relevant Assessment Year or before the completion of the assessment whichever is earlier

4 139(5)

Revised Return

5 139(4A) Return by Trusts (i) Whose Income does not exceed Rs. 1,00,000/- & audit not required (ii) Whose Income exceeds Rs. 1,00,000/- or if business turnover exceeds Rs. 40,00,000/- & audit is required * If the above return is not filed by due dates as prescribed above, then Penalty u/s 272A(2) @ Rs. 100 per day of default 6 139(4B) Return by Political Parties

31st July of the relevant Assessment Year 30th September of the relevant Assessment Year

30th September of the relevant Assessment Year

7 139(4C) Returns by Certain Associations / Institutions Following entities are required to furnish their return of Income if the Income exceeds the basic exemption limit (i) Scientific Research Association covered u/s 10(21) (ii) News Agency Covered u/s 10(22B) (iii) Associations / Institutions referred to in 10(23A) / 10(23B) (iv) Fund or Institution, University or other educational Institution or hospital or other medical institution referred to u/s 10(23)(iiiad) 10(23)(iiiae) / 10(23)(iv) / 10(23)(v) / 10(23)(vi) / 10(23)(via) (v) Trade Union covered u/s 10(24) * If the above return is not filed by due dates as prescribed above, then Penalty u/s 272A(2) @ Rs. 100 per day of default 8 139(9) Defective Return

31st July of the relevant Assessment Year OR 30th September of the relevant Assessment Year

15 days or such extended time from the date the assessee receives the intimation for defect. No time limit to issue / serve the notice Maximum 180 days from the date of receipt of direction by assessee

10 142(1)

Inquiry before assessment - Notice

11 142(2A) Special Audit - Time limit to submit the special audit report with prior approval of CCIT / CIT

12 143(1)

Intimation - to be issued.

12 months from the end of the financial year in which the return of income is filed. 12 months from the end of the month in which the return of income is filed.

13 143(2)

Notice for regular assessment - to be served. (issued - leaves the department; served - received by assessee)

14 149

Time Limit for issue of notice u/s 148 (i) In case where the assessment has been made u/s 143(3) / u/s 147 -ITO Requires approval of JCIT where income chargeable to tax has escaped assessment of less than Rs.1,00,000/- ITO requires approval of CCIT / CIT where income chargeable to tax escaping assessment, amounts to Rs.1,00,000/- or more (ii) In any other case including a case assessed u/s 144 - No approval is necessary if income chargeable to tax tax has escaped assessment of less than Rs.1,00,000/- ACIT / DCIT /I.T.O. requires approval of JCIT where income chargeable to tax, escaping assessment is Rs.1,00,000/- or more Notice u/s 148 to the agent of a non-resident (If the agent refuses to accept the notice & if the non-resident has arrived in India, then the time limit would be that of 4 years / 6 years) Time Limit for Notice u/s 48 giving effect to any finding or direction in an order passed by any authority in an appeal, revision or reference Restriction placed on Issue of Notice u/s 150(1)

4 years from the end of the relevant assessment year 6 years from the end of the relevant assessment year

4 years from the end of the relevant assessment year 6 years from the end of the relevant assessment year 2 years from the end of the relevant assessment

15 149(3)

16 150(1)

---------No Time Limit -----------

17 150(2)

Notice u/s 148 cannot be issued, if at the time when the order which was subject matter of appeal, reference or revision, was paased, the time-limit for issue of such notice has expired

18

153 153(1)

Time Limit to complete Assessment Passing assessment order u/s 143 or 144

21 months from the end of the assessment year in which the income was first assessable 9 months from the end of the financial year in which notice u/s 148 was served 9 months from the end of the financial year in which the CIT received the order of CIT(A) or ITAT

153(2)

Making assessment, re-assessment etc u/s 147

153(2A) (i) When assessment is to be carried out in pursuance of order of CIT (A) u/s 250 or ITAT u/s 254 setting aside the original assessment order & directing fresh assessment (i) When fresh assessment is to be carried out in pursuance of Revisional order of CIT passed u/s 263 / 264 setting aside or cancelling the original assessment order & directing fresh assessment 19 153(3) Exception to Section 153 (i) Section 129 (ii) Section 10(21), 10(22B), 10(23A), 10(23B), 10(23C) & 10(24) (iii) Section 142(2A) (iv) Section 158A (v) Section 245C & 245D(1) (vi) Section 245Q(1) & 245R(7) (vii) Stay order by any court Time Limit for completion of Assessment u/s 153A

9 months from the end of the financial year in which Revisional order is passed by CIT

Time lost in 7 circumstances will be added to the time limit specified in Sec 153 Time left thereafter shall be 60 days. If it is less than 60 days, then it shall be increased to 60 days

20 153B

For earlier 6 years - 21 months from the end of the financial year in which the search was completed Current Year - 21 months from the end of the financial year in which the search was completed

21 153C

Assessment of Income of any other person

For earlier 6 years - 21 months from the end of the financial year in which the search was completed Current Year - 21 months from the end of the financial year in which the search was completed OR 9 months from the end of the financial year in which the book of accounts or documents or assets are handed over to the Assessing Officer, havig jurisdiction over such oter person 4 years from the end of the financial year in which the order sought to be rectified was passed No time limit but Assessing Officer must rectify within 6 months from the end of the month in which application was received from the assessee 4 years from the end of the financial year in which the event giving rise to mistake / ammendment has taken place ---------No Time Limit -----------

22

154 Recification of Mistake Apparent on Record (i) Department wants to rectify on it's own (ii) Assessee makes an application

23

155 Other Rectification / Consequential Rectification

24

156 Notice of Demand

Distinguishing Powers of CIT (A) & ITAT

Sr.No. 1 2 3 4 5 6 7 8 9 10 Particulars Power to enhance the assessment (i.e. to make addition) Power to reduce the assessment. Power to Confirm the assessment Power to annul (to declare void or nulify the effect) the assessment. Power to set aside the assessment order & refer it back to A.O. Power to condone any delay in filing the appeal with it Power to make further inquiries Power to rectify any mistake apparent on it's order Power to Review it's own order Power to admit additional grounds of appeal CIT (A) r r r r ITAT r r

11 Power to admit additional evidence 12 Power to grant stay of recovery proceedings 13 Power to decide any other matter for which the assessee has not agitated (not filed any appeal) 14 Power to award cost

As per Rule 46A of Income Tax Rules As per Rule 29 of Appellate Tribunal Rules, 1963

TECHNICAL TERMS
S No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Terms Abate Abatement Cestui que trust De facto Ex-parte Infra Inter alia Inter se Intra vires Ispo Facto Locus standi Mens Rea Modus Operandi Mutatis Mutandis Obitter Dicta Onus Probundi Prima Facie Quash Quid pro quo Ratio Deceindi Sou Motu Suggestio Falsi Supra Supressio veri Ultra Vires Void ab initio Meaning To put an end to, to nulify Reduction, allowance or rebate A beneficiary under a trust In fact Excluding the party concerned As below Among other things Between themselves Within the powers of Automatically The right to be heard in the court or other proceedings Guilty Mind Strategy, technique, method of operating, procedure Equally, From top to bottom Something extra said by the court or Tribunal in addition to the judgment delivered The burden of proof On the face of it To discharge or set aside Compensation, consideration, giving of one thing of value to another thing Those points on which the judgment of any court is based on On his own motion A false representation As Above An international supression of truth Beyond the power, beyond the scope of Authority Void from the beginning