Section 153 ITA 1961 prescribes the TIME LIMIT for completion of REGULAR ASSESSMENT:
A6 months (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153)
B21 MONTHS from end of relevant assessment year (extended for transfer pricing cases to 33 months); time limits vary based on case complexity
C5 years (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153)
Dperpetual (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153) (cf. Income Tax Act 1961, Section 153)
Answer & Solution
Correct answer: B. 21 MONTHS from end of relevant assessment year (extended for transfer pricing cases to 33 months); time limits vary based on case complexity
1. Section 153 Income Tax Act 1961 prescribes TIME LIMITS for completion of assessment:
2. (i) Section 143(3) regular assessment: 21 MONTHS from the end of assessment year;
3. (ii) Section 144 best judgment assessment: 21 months;
4. (iii) Section 147 reassessment: time limits vary;
5. (iv) Transfer pricing cases: 33 months (Section 92CA(3A));
6. (v) Search/seizure cases: 21 months from end of FY in which search took place.
7. EXCLUSIONS: stay periods, transfer pricing reference periods, etc.
8. Section 153(1) limits AO time to ensure timely closure.
9. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 153_
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