Report No. 12
160. Time limit for completion of assessments and reassessment.-
(1) No order of assessment shall be made under sections 147 or 148 [23] at any time after-
(a) the expiry of four years from the end of the assessment year in which the income was first assessable; or
[Section 34(3), main para., part]
(b) the expiry of four years from the issue of a notice under section 283(1) [28(3)], in a case falling under section 280(1)(c) [section 28(1)(c)]; or
[Contrast section 34(3), main para., words "other than... applies"]
(c) the expiry of one year from the date of the filing of a return or a revised return under section 143(4) [22(3)];
whichever is latest.
(2) No order of assessment or re-assessment shall be made under section 152 [section re: income escaping assessment]-
(a) where the assessment or reassessment is to be made under clause (a) of that section,......[section re: income escaping assessment], after the expiry of four years from the end of the assessment year in which the notice under section 154 [section re: notice] was served;
(b) where the assessment or re-assessment is to be made under clause (b) of that section [section re: income escaping assessment], after-
(i) the expiry of four years from the end of the assessment year in which the income was first assessable, or
[Section 34(3), main para., part]
(ii) the expiry of one year from the date of service of the notice under section 154, [section re: notice], whichever is later.
[Section 34(3), 1st proviso]
(3) The provisions of sub-sections (1) and (2) shall not apply to the following classes of assessments and re-assessments, which may be completed at any time-
(i) where a re-assessment is made under section 151 [27];
[Section 34(3), 2nd proviso, earlier half]
(ii) where the assessment or re-assessment is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under sections 259, 263, 269, 271, or 272 [sections 31, 33, 33A, 33B, 66 or 66A].
[Section 34(3), 2nd proviso, latter half, part]
Explanation 1.- In computing the period of limitation for the purposes of this section, the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be reheard under section 133, Proviso [5 (7C) 1st Prov.], or any period during which the assessment proceeding is stayed by an order or injunction of any court, shall be excluded.
[Section 5(7C), 2nd proviso]
Explanation 2.-Where, by an order under sections 259, 263, 269, 271 or 272, [section 31, section 33, section 33A, section 33B, section 66 or section 66A] any income is excluded from the total income of the assessee for an assessment year, then, an assessment of such income for another assessment year shall, for the purposes of section 156 and this section [34(3), 2nd Proviso, latter half both parts], be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order.
Explanation 3.-Where, by an order under sections 259, 263, 269, 271 or 272, [section 31, section 33, section 33A, section 33B, section 66 or section 66A] any income is excluded from the total income of one person and held to be the income of another person, then an assessment of such income on such other person shall, for the purposes of section 156 and this section [34(3), 2nd Proviso, latten half both parts] be deemed to be one made in consequence of or to give effect to any finding or direction contained in the said order, provided such other person was given an opportunity of being heard before the said order was passed.
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