Search this Act

Jump directly to a section by number or title.

Section 286

Time limit for completion of assessment, reassessment and recomputation

(1)
No order in respect of proceedings mentioned in column B of the Table below shall be made after expiry of the period specified in column D of the said Table and calculated from the date as mentioned in column C thereof. Table Sl. No. Nature of Date from which time limit Time limit Proceedings or for completion is to be for orders calculated completion A B C D 1. Assessment order End of the financial year One year. under section 270(10) succeeding the relevant tax or section 271. year. 2. Assessment order End of the financial year in One year. under section 270(10) which such updated return or 271, where an was furnished. updated return of income is furnished under section 263(6). 3. Assessment order End of the financial year in One year. under section 270(10) which such return was or 271, where return furnished. is furnished in consequence of order under section 239(3)(b). 4. Assessment, End of the financial year in One year. reassessment or which notice under section recomputation order 280 was served. under section 279. 5. Fresh assessment End of the financial year in One year. order or fresh order which order under section 359 under section 166 in or 363 is received, or order pursuance to an order under section 377 or 378 is under section 359, or passed, by the jurisdictional 363, or 377, or 378 Principal Commissioner or setting aside or Commissioner. canceling an assessment order or an order under section 166. 6. Assessment or End of the month in which One year. reassessment which such assessment or stands revived, as per reassessment stands revived. section 153A(2) of Income-tax Act, 1961 (43 of 1961), or section 292. A B C D 7. Assessment End of the month in which One year. required to be made assessment order in the case in the hands of of firm is passed. partner, in consequence of an assessment made on the firm under section 279. 8. Assessment, End of the month in which One year. reassessment or such order is received, or recomputation passed, by the jurisdictional required to be made Principal Commissioner or on the assessee or Commissioner. any person in consequence of or to give effect to any finding or direction contained in an order–– (i) under section 359 or 363 or 365(10), or 368, or 377 or 378; or (ii) of any Court in a proceeding otherwise than by way of appeal or reference under 30 this Act. 9. Order giving End of the month in which One year. effect to an order order under section 359 or under section 359 or 363 or 365(10) or 368 is 363 or 365(10) or received, or order under 35 368 or 377 or 378, section 377 or 378 is passed, otherwise than by by the jurisdictional Principal making a fresh Commissioner or assessment or Commissioner. reassessment or fresh 40 order under section 166, where–– (i) verification of any issue by way of submission of any 45 document by the assessee or any other person is to be carried out; or (ii) an opportunity 50 of being heard is to be given to the assessee. A B C D 10. Order giving effect to End of the month in Six months, an order under section which order under extendable to 359 or 363 or 365(10) or section 359 or 363 or nine months 368 or 377 or 378 365(10) or 368 is with the otherwise than by making received, or order under approval of a fresh assessment or section 377 or 378 is authorities as reassessment or fresh passed by the per section order under section 166. jurisdictional Principal 2(62) and (64) Commissioner or Commissioner. 11. Modification of End of the month in Two assessment, reassessment which such order under months. or recomputation to give section 166 is received effect to the order passed by the Assessing under section 166 read Officer. with section 377
(2)
Time limit for completion of any assessment or reassessment as provided in sub-section (1), in a case where reference is made to the Transfer Pricing Officer for determining the arm’s length price under section 166(1), shall be extended by an additional period of twelve months.
(3)
For the purposes of this section, in computing the time limit for completion, the following period shall be excluded,––

(a) the time taken in reopening the whole or any part of the proceeding on request of the assessee or in giving an opportunity to the assessee to be re-heard under section 244;

(b)
the period commencing on the date on which stay on assessment proceeding was granted by an order or injunction of any court and ending on the date on which certified copy of the order vacating the stay was received by jurisdictional Principal Commissioner or Commissioner;
(c)
the period commencing from the date on which the Assessing Officer intimates the Central Government or the prescribed authority, the contravention of the provisions of Schedule III (Table: Sl. No. 23, 24, 25) or section 270(11)(i), and ending with the date on which the copy of the order withdrawing the approval or rescinding the notification, as the case may be, under those provisions is received by the Assessing Officer;
(d)
the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited or inventory valued under section 268(5) and––

(i) ending with the last date on which the assessee is required to furnish a report of such audit or inventory valuation under that section; or

(ii) where such direction is challenged before a court, ending with the date on which the order setting aside such direction is received by the Principal Commissioner or Commissioner;

(e)
the period commencing from the date on which the Assessing Officer makes a reference to the Valuation Officer under section 269(1) and ending with the date on which the report of the Valuation Officer is received by him;
(f)
the period (not exceeding sixty days) commencing from the date on which the Assessing Officer received the declaration under section 375(1) and ending with the date on which the order under section 375(3) is made by him;
(g)
the period commencing from the date on which an application is made before the Board for Advance Rulings under section 383(1) and ending with the date on which the order either rejecting the application or the advance ruling pronounced by it, is received by the jurisdictional Principal Commissioner or Commissioner under section 384(5) or (8), as the case may be;

(h) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 159 and ending with the date on which the information requested is last received by the jurisdictional Principal Commissioner or Commissioner, or one year, whichever is less;

(i)
the period commencing from the date on which a reference for declaration of an arrangement to be an impermissible avoidance arrangement is received by the jurisdictional Principal Commissioner or Commissioner under section 274(1) and ending on the date on which a direction under sub-section (3) or (6) or an order under sub-section (5) of the said section is received by the Assessing Officer;
(j)
the period (not exceeding one hundred eighty days) commencing from the date on which a search is initiated under section 247 or a requisition is made under section 248 and ending on the date on which the seized items 25 or the requisitioned items, are handed over to the Assessing Officer having jurisdiction over the assessee,—

(i) in whose case such search is initiated under section 247 or such requisition is made under section 248; or

(ii) to whom any money, bullion, jewellery, virtual digital asset 30 or other valuable article or thing seized or requisitioned belongs to; or

(iii) to whom any books of account or documents seized or requisitioned pertains or pertain to, or any information contained therein, relates to;

(k)
the period commencing from the date on which the Assessing 35 Officer makes a reference to the jurisdictional Principal Commissioner or Commissioner under the section 270(13) and ending with the date on which copy of the order under of section 351(2)(ii)(A) or (B), is received by the Assessing Officer.
(4)
Where immediately after exclusion of the period as mentioned in 40 sub-section (3), the remaining period for completion available to the Assessing Officer, as specified in sub-section (1), for making an order of assessment, reassessment or recomputation, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid time limits for completion shall be deemed to have been extended accordingly. 45
(5)
Where the period available to the Transfer Pricing Officer is extended to sixty days as per section 166(8) and the remaining period for completion available to the Assessing Officer under this section, for making an order of assessment, reassessment or re-computation, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid time limit for completion shall 50 be deemed to have been extended accordingly.
(6)
Where a proceeding before the Interim Board for Settlement abates under section 245HA of the Income-tax Act, 1961 and the remaining period of limitation available to the Assessing Officer under this section for making an order of assessment, reassessment or re-computation, after the exclusion of the period under section 245HA(4) of the Income-tax Act, 1961, is less than one year, such remaining period shall be deemed to have been extended to one year; and for the purposes of determining the period of limitation under sections 282, 287, 288 and 296 and for the purposes of payment of interest under section 437, this sub-section shall also apply accordingly.
(7)
In a case where the remaining time period for making an order of regular or reassessment, after excluding the time period specified in sub-section (3)(k), ends before the end of the month, the remaining period shall be extended to the end of such month, and the specified time limit for completion shall be deemed to have been extended accordingly.
(8)
For the purposes of this section and section 283, where by an order referred to in entry in sub-section (1) (Table: Sl. No. 8.A)–– (i) any income is excluded from the total income of the assessee for a tax year, then, an assessment of such income for another tax year shall be deemed as one made in consequence of or to give effect to any finding or direction contained in the said order; or (ii) 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 be deemed as one made in consequence of or to give effect to any finding or direction contained in the said order, if such other person was given an opportunity of being heard before the said order was passed.