Section 153 defines the time limit for completion of scrutiny assessment proceedings by assessing officer which is as under:
| Section | Particular | Time Limit |
| 153(1) | Completion of assessment proceedings u/s 143 and 144 | Within 21 months from the end of relevant Assessment year.
(For cases of A.Y. 2018-19 the time limit has been changed to 18 months) (For cases of A.Y. 2019-20 and onwards the time limit has been changed to 12 months) |
| 153(2) | Completion of assessment, reassessment or recomputation u/s 147 | Within 9 months from the end of Financial year in which notice u/s 148 has been issued for reassessment or recomputation has been issued.
(For notice u/s 148 issued after 01.04.2019 time limit has been changed to 12 months) |
| 153(3) | Completion of fresh assessment in pursuance of order u/s 254 or section 263 or 264 setting aside or cancelling an assessment | Within 9 months from the end of Financial year in which order u/s 254 or 263 or 264 has been issued.
(For order mentioned above issued after 01.04.2019 time limit has been changed to 12 months) |
| 153(4) | If any of the above cases include any point with regard to transfer pricing | Above Time limit would be extended by 12 months. |
| 153(5) | Giving effect to the order of CIT(A) u/s 250, ITAT order u/s 254, High Court order u/s 260, Supreme Court order u/s 262, CIT revision order u/s 263/ 264. | Within 3 months from the end of month in which such order has been passed. (It may be extended by further six month with permission of CIT or Pr. CIT |
From the above table it’s clear that CBDT is trying to reduce the time of assessment and trying to fast track things as everything is also going to go digital and towards faceless scrutiny assessment and also most of the time limits have been brought down to 12 months and CBDT wants to complete all assessment within 1 year and fast track tax recovery.
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What is the time extended time limit for issuance of scrutiny notice for the AY 2019-20 and AY 2020-21 and what is the extended time limit for completion of assessment for the above year.
According to us there has been no extension in due date for starting original assessment for AY 2019-20 and AY 2020-21 and for AY 2019-20 there were very less assessment: https://www.taxontips.com/did-you-receive-income-tax-assessment-notice-u-s-1432-1421-for-ay-2019-20-very-few-assessment-done-for-ay-2019-20-should-you-be-happy/
Further for AY 2020-21, scrutiny notices were received before 30.06.2021 as per the due date of 3 months from end of financial year in which return was filed.
Thus, there has been no extension in opening of scrutiny.
Further, the time limit for completion for AY 2020-21 would remain the same as mentioned above until any further extension.
This is the personal opinion of the writer and not a legal view.
Consult your tax professional before taking any decision
Regards,
Team Taxontips.com