Section 153(9) of the Indian Income Tax Act

Section 153(9) of the income tax act provides that; the provisions of section 153 shall apply to and concerning any order of assessment, reassessment or reassessment; made before 1st June 2016.

Section 153(9) of the Income Tax Act

In case where a notice u/s 142(1) or 143(2) or 148(2) has been issued before 1st June 2016; and the assessment or reassessment has not been accomplished by such date; such an assessment or reassessment shall be completed as per the provisions of this section; as it stood immediately before its submission by the Finance Act 2016.

Explanation:

Here, for computing the period of limitation, the following shall be excluded.

  • the time taken for reopening the whole or any part of the proceeding or; for giving an opportunity to the taxpayer to be heard u/s 129,
  • the period during which an assessment proceeding is waited by an order or injunction of any court,
  • the period starting from the date on which; the AO intimates the Central Government or the prescribed authority; the contravention of the provisions of clause (21), (22B), (23A), (23B) or sub clause (iv), (v), (vi), (via) of section 10, under clause (i) of the provision to section 143(3) and; ending with the date on which; the AO receive the copy of the order withdrawing the approval or rescinding the notification, as the case may be; under those clauses or,
  • a period starting from the date on which; the AO directs the assessee to get his accounts audited u/s 142(2A) and;

             i. ending with the last date on which; the assessee is required to furnish a report of such audit under that sub-section; or

           ii. where such direction is challenged before a court, ending with the date on which; the principal commissioner or commissioner receives the order setting aside such direction.

  • the period starting from the date on which the AO refers to the valuation officer u/s 142A(1) and; ending with the date on which the AO receives the report of the valuation officer,
  • the period not exceeding 60 days starting from the date on which the AO received the declaration u/s 158A(1) and; ending with the date on which he makes the order u/s 158A(3).
  • in case where the Income Tax Settlement Commission rejects the application or does not allow it to proceed; the period starting from the date on which an application is made before the Settlement Commission u/s 245C and; ending with the date on which the order u/s 245D(1) is received by the principal commissioner or commissioner under subsection 2 of that section,
  • the period beginning from the date on which application is made before the Authority for Advance Rulings u/s 245Q(1) and; ending with the date on which the Principal Commissioner or Commissioner receives the order regarding the rejection of the application u/s 245R(3),
  • the period beginning from the date on which; an application is made before the Authority for Advance Rulings u/s 245Q(1) and; ending with the date on which the advance ruling pronounced by it; is received by the Principal Commissioner or Commissioner u/s 245R(7),
  • the period starting from the date on which; an authority competent makes a reference or first of the references for exchange of information under an agreement referred to in section 90 or 90A and; ending with the date on which the Principal Commissioner or Commissioner receives the information requested or; a period of one year, whichever is less,
  • the period initiating 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 u/s 144BA(1) and; ending on the date on which the Assessing Officer receives a direction under sub-section (3) or (6) or; an order under sub-section (5) of the said section.

Conditions:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in section 153(1), Section 153 (2), Section 153 (3) & Section 153 (8) available to the AO for making an order of assessment, reassessment or recomputation, as the case may be, is less than sixty days, such remaining period shall be extended to 60 days and the aforesaid period of limitation shall be deemed to be extended accordingly.

Where the period available to the Transfer Pricing Officer is extended to 60 days; as per the proviso to sub-section (3A) of section 92CA and; the period of limitation available to the AO for making an order of assessment, reassessment or recomputation; as the case may be, is less than 60 days, such remaining period shall be extended to 60 days and; the aforesaid period of limitation shall be deemed to be extended accordingly.

Further, where a proceeding before the Settlement Commission abates u/s 245HA; the period of limitation available under this section to the AO for making an order of assessment, reassessment or recomputation; as the case may be, shall, after the exclusion of the period u/s 245HA(4), 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; and for the purposes of determining the period of limitation u/s 149, 154, 155 and 158BE and; for payment of interest under section 244A this proviso shall also apply accordingly.

Explanation:

For the purposes of this section, where, by an order referred to in clause (i) of sub-section (6);

     (a) any income is excluded from the total income of the assessee for an AY, then; an assessment of such income for another AY shall, for the purposes of section 150 and this section; be deemed to be one made in consequence of or; to give effect to any finding or direction contained in the said order; or

     (b) 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 150 and this section, be deemed to be one made in consequence of or; to give effect to any finding or direction included in the said order; if such other person was given an opportunity of being heard before the said order was passed.

 

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