Clause 163 - Time limits for completion of assessment or reassessments. - Direct Taxes Code, 2010

Time limits for completion of assessment or reassessments. 163. (1) The Assessing Officer shall not make,— (a) any order of assessment under section 155 or section 156 after the expiry of a period of twenty-one months from the end of the financial year in which the return was due; (b) any order of reassessment under section 159 after the expiry of a period of twenty-one months from the end of the financial year— (i) in which the last of the authorisations was executed in the case of a person where search and seizure was carried out under section 135 or the material was obtained in pursuance to a requisition under section 136; (ii) in which any material belonging to the person referred to in section 138 is handed over to the Assessing Officer having jurisdiction over such person; (iii) in which the notice under section 159 is served, in any other case; (c) any order of assessment in pursuance of an order under section 185 or section 187 or section 190 or section 262, setting aside or cancelling an assessment, as the case may be, after the expiry of a period of one year from the end of the financial year in which the order is received by the Commissioner; (d) any order of assessment in pursuance of an order under section 191 or section 192, after the expiry of a period of one year from the end of the financial year in which the order is passed under that section; (e) any order of assessment, reassessment or recomputation in pursuance of the revival of any proceeding under this Code, after the expiry of a period of one year from the end of the financial year in which the order of revival of the proceedings is received by the Commissioner. (2) Notwithstanding anything a reference has been made to the Transfer Prices Officer under section 153 in sub-section (1), the Assessing Officer shall, in a case where not make an order of assessment or reassessment for such financial year after the expiry of a period of thirty-three months from the end of the financial year in which the return was due, or notice under section 159 is served, whichever is later. (3) The provisions of sub-sections (1) and (2) shall not apply in respect of assessment, re-assessment or re-computation to be made in consequence of, or to give effect to, any finding or direction contained in any order— (a) under section, 180, 185, 187, 190, 191, 192 or 262; or (b) of any court in a proceeding otherwise than by way of appeal or reference under this Code. (4) In computing the period of limitation for the purposes of sub-sections (1) and (2), the following period or time shall not be included, namely:— (a) the period commencing from the date on which the application for Advance Pricing Agreement is filed by the assessee and ending with— (i) the date on which the order rejecting the application is received by the Commissioner; or (ii) the date on which the copy of the Advance Pricing Agreement, entered under section 118, is received by the Commissioner; (b) 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; (c) the period during which the assessment proceeding is stayed by an order or injunction of any court; (d) the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited under section 151 and ending with the last date on which the report of such audit is required to be furnished under that section; (e) the period commencing from the first day of the month in which the notice under section 154 is served on the assessee and ending with the last day of the month in which the order under that section is passed; (f) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 258 and ending with the date on which the order rejecting the application, or the date on which the advance ruling pronounced by it, is received by the Commissioner under sub-section (9) or, as the case may be, sub-section (13) of that section; (g) the period commencing from the date on which an application is made before the Income tax Settlement Commission under sub-section (1) of section 273 and ending with the date on which the order rejecting the application by it under sub-section (1) of section 275 is received by the Commissioner. (5) The period of limitation available to the Assessing Officer for making an order of assessment, reassessment or recomputation, shall be extended to sixty days, if the period immediately after the exclusion of the time or period specified in sub-section (4) is less than sixty days.