Limitation Period for the Completion of Block Assessment
Introduction
Section 158BE prescribes the time limits for completing a block assessment. The assessment must be completed within a specified period from the end of the quarter in which the last authorisation for a search under Section 132 or a requisition under Section 132A was executed or made.
Primary limitation period
- The order under Section 158BC must be passed within 12 monthsfrom the end of the quarter in which the last authorisation for search or requisition was executed or made.
- For “other persons” covered under Section 158BD, the period is 12 monthsfrom the end of the quarter in which the notice under Section 158BC is issued.
Extended limitation period
Where the AO grants an extension of 30 days to file the block return under the fifth proviso to Section 158BC(1)(a), the limitation period is correspondingly extended to 13 months under:
- Section 158BE(1) for the searched person;
- Section 158BE(3) for the other person.
Additional time for transfer pricing references
If a reference is made to the Transfer Pricing Officer under Section 92CA(1) during the block assessment, the time limit for passing the order is extended by an additional 12 months.
Exclusions from the limitation period
The following time periods are excluded from the computation of the limitation period:
- Time taken for reopening proceedings, wholly or partly, or allowing rehearing when jurisdiction is changed.
- Period during which assessment proceedings remain stayed by an order or injunction of any court, ending on the date the Principal CIT/CIT receives the order vacating the stay.
- Period between:
- Intimation to the Central Government/ prescribed authority regarding contravention of conditions by specified institutions; and
- Receipt of the order withdrawing approval/ rescinding notification.
- Period from the date of the AO’s direction for special audit or valuation till:
- The date the assessee is required to furnish the report; or
- Where challenged, the date the Principal CIT/CIT receives the order setting aside the direction.
- Period between the reference made to the Valuation Officer and receipt of the valuation report.
- Period from the date of application before the Authority for Advance Ruling or Board for Advance Rulings until the date the Principal CIT/CIT receives the order rejecting the application or the ruling.
- Period from the date of the competent authority’s reference for exchange of information until the earlier of:
- The date the information was last received; or
- One year.
- Period from receipt of reference relating to an arrangement under General Anti-Avoidance Rules until the AO receives direction or order.
- Period (maximum 180 days) from:
- The date of initiation of search/ requisition;
- Until seized books, documents, money, bullion, jewellery, valuables or information are handed over to the AO having jurisdiction over:
- the searched person;
- the person to whom valuables belong; or
- the person to whom seized books or documents pertain.
- Period from the date of AO’s reference to withdraw registration/ approval of trusts or institutions (under Section 10(23C)(iv),(v),(vi),(via) or Section 11) until receipt of the order by the AO.
Minimum available time of 60 days
Where, after excluding the above periods, the time remaining to complete the assessment is less than 60 days, it shall be extended to 60 days.
If such an extended period expires before the end of a month, it shall stand extended to the end of that month.