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36. Amendment of section 153D. |
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—In section 153D of the Income-tax Act, for the word, figures and letter "section 153A", the words, brackets, figures and letter "sub-section (1) of section 153A" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2003.
Clauses 32 to 36 seek to amend sections 153, 153A, 153B, 153C and 153D of the Income-tax Act, which relate to time-limit for completion of assessments and reassessments, assessment in case of search or requisition time-limit for completion of assessment, etc.
The proposed amendment seeks to insert a new proviso in section 153 so as to provide that where the proceedings before the Settlement Commission abate under section 245HA, the period of limitation referred to in this section available to the Assessing Officer for making an order of assessment, reassessment or re-computation, as the case may be, after the adjustment under sub-section (4) of section 245HA, shall be not less than one year, and where such period of limitation is less than one year, it shall be deemed to be extended to one year. Further, for the purposes of determining the period of limitation under sections 149, 153B, 154, 155, 158BE and 231 and for the purposes of payment of interest under section 243 or 244 or, as the case may be, section 244A, this proviso shall also apply accordingly.
This amendment of section 153 will take effect retrospectively from 1st June, 2007.
It is further proposed to insert a new sub-section (4) in section 153 to provide that notwithstanding anything contained in the foregoing provisions of this section, sub-section (2) of section 153A and sub-section (1) of section 153B, the order of assessment or reassessment, relating to any assessment year which stands revived under sub-section (2) of section 153A, shall be made within one year from the end of the month of such revival or within the period specified in this section or sub-section (1) of section 153B, whichever is later.
The existing provision of section 153A is proposed to be renumbered as sub-section (1) and a new sub-section (2) is proposed to be inserted to provide that if any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in any appeal or other legal proceeding, then, notwithstanding anything contained in sub-section (1) of this section or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Commissioner. Proviso to this sub-section proposes to provide that such revival shall cease to have effect, if such order of annulment is set aside. Further, in view of the provisions of section 153A being renumbered as sub-section (1) thereof, consequentially, second proviso to sub-section (1) has been amended by substituting the words "referred to in this section" with the words "referred to in this sub-section".
Clause (b) of section 153A provides for assessment or reassessment of total income of six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A.
Clause (a) of sub-section (1) of section 153B provides for time-limit for completion of assessment or reassessment of total income in respect of each assessment year falling within a period of six assessment years referred to in clause (b) of section 153A. Clause (b) of this sub-section provides for time-limit for completion of assessment in respect of the assessment year relevant to the previous year in which search is conducted or requisition is made.
It is also proposed to insert a new clause (vii) in the Explanation to sub-section (1) of section 153B providing that the period commencing from the date of annulment of a proceeding or order of assessment or reassessment referred to in sub-section (2) of section 153A till the date of the receipt of the order setting aside the order of such annulment by the Commissioner, shall be excluded in computing the period of limitation for the purposes of section 153B. Consequential amendments in clause (a) of sub-section (1) to substitute the word, figures and letter "section 153A" with the words, figures and letter "sub-section (1) of section 153A" and in the proviso to the Explanation has been made.
Further, consequential amendments in sections 153C and 153D have been made to substitute the word, figures and letter "section 153A" with the words, brackets, figures and letter "sub-section (1) of section 153A".
These amendments will take effect retrospectively from 1st June, 2003.
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