{"act":{"id":"finance-act-2021","short_title":"The Finance Act, 2021","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2021-2022.","act_number":null,"act_year":2021,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":180,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2021/"},"unit":"section","section":{"number":"46","heading":"Amendment of section 153","text":"Amendment of section 153. 46. In section 153 of the Income-tax Act,— (i) | in sub-section (1), after the second proviso, the following proviso shall be inserted, namely:— 'Provided also that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2021, the provisions of this sub-section shall have effect, as if for the words \"twenty-one months\", the words \"nine months\" had been substituted.'; (ii) | in Explanation 1,— (a) | in clause (viii), for the words \"Authority for Advance Rulings\", the words \"Authority for Advance Rulings or before the Board for Advance Rulings\" shall be substituted; (b) | in clause (ix), for the words \"Authority for Advance Rulings\", the words \"Authority for Advance Rulings or before the Board for Advance Rulings\" shall be substituted; (c) | after the third proviso, the following provisos shall be inserted and shall be deemed to have been inserted with effect from the 1st day of February, 2021, namely:— \"Provided also that where the assessee exercises the option to withdraw the application under sub-section (1) of section 245M, the period of limitation available under this section to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, shall, after the exclusion of the period under sub-section (5) of the said section, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year: Provided also that for the purposes of determining the period of limitation under sections 149, 154 and 155, and for the purposes of payment of interest under section 244A, the provisions of the fourth proviso shall apply accordingly.\".","html":"<p><b>Amendment of section 153.</b></p><p><b>46.</b> In section 153 of the Income-tax Act,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>in sub-section (1), after the second proviso, the following proviso shall be inserted, namely:—</td></tr><tr><td></td><td></td><td>'<b>Provided also </b>that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2021, the provisions of this sub-section shall have effect, as if for the words \"twenty-one months\", the words \"nine months\" had been substituted.';</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>in <i>Explanation 1</i>,—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>in clause (<i>viii</i>), for the words \"Authority for Advance Rulings\", the words \"Authority for Advance Rulings or before the Board for Advance Rulings\" shall be substituted;</td></tr><tr><td>(<i>b</i>)</td><td></td><td>in clause (<i>ix</i>), for the words \"Authority for Advance Rulings\", the words \"Authority for Advance Rulings or before the Board for Advance Rulings\" shall be substituted;</td></tr><tr><td>(<i>c</i>)</td><td></td><td>after the third proviso, the following provisos shall be inserted and shall be deemed to have been inserted with effect from the 1st day of February, 2021, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>\"<b>Provided also </b>that where the assessee exercises the option to withdraw the application under sub-section (1) of section 245M, the period of limitation available under this section to the Assessing Officer for making an order of assessment, reassessment or recomputation, as the case may be, shall, after the exclusion of the period under sub-section (5) of the said section, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year:</td></tr><tr><td></td><td></td><td><b>Provided also </b>that for the purposes of determining the period of limitation under sections 149, 154 and 155, and for the purposes of payment of interest under section 244A, the provisions of the fourth proviso shall apply accordingly.\".</td></tr></table></div>","words":291,"text_source":"published"},"classification":[],"instruments":[],"judgments":[{"cnr":"SCIN010030632023","order":"order-161.pdf","title":"Union Of India vs Rajeev Bansal","court":"SC","court_name":"Supreme Court of India","date":"2024-10-03","citation":"2024 INSC 754","precedential_value":"Landmark binding precedent","court_marking":"reportable","ratio_decidendi":"The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020 (TOLA) continues to apply to reassessment proceedings initiated under the Income Tax Act even after the Finance Act 2021 came into force on April 1, 2021 and substituted the reassessment regime, where any action or proceeding contemplated under the substituted provisions of the Income Tax Act falls for completion between March 20, 2020 and March 31, 2021 (or such extended date notified). The extended time limit of June 30, 2021 provided under TOLA applies to the issuance of reassessment notices under Section 148 and the grant of sanction under Section 151 of the Income Tax Act. Reassessment notices issued under the new regime must be issued within the time limit surviving under the Income Tax Act read with TOLA's relaxations. Notices issued beyond the surviving time limit are time-barred and liable to be set aside as the time limits constitute jurisdictional requirements for the assessing officer's power to reassess. The legal fiction created by the Supreme Court in the Ashish Agarwal decision, deeming old regime notices as new regime show-cause notices, carries the consequence that the balance of time available under Income Tax Act read with TOLA applies to the completion of reassessment proceedings initiated under that fiction.","applied_to_this_section":"Substitution of reassessment regime introducing mandatory prior approval, show-cause notice procedure, reduced time limits, higher monetary thresholds, first proviso to Section 149 restricting retrospective effect","basis":"cited","decided_under":null,"url":"https://ecourtsindia.com/cnr/SCIN010030632023/order-161"}],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2021/section/46/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}