We are for the present concerned with section 3(1) of the TOLA as also about the
notification No. 93/2020 dated 31 . 12.2020 and 10/2021 dated 27.02.2021 in the
context of the time limit for completing assessments & reassessment. Section 3(1) of
the TOLA among other things provides that where any time limit that has been
specified in or prescribed or notified under the Specified Act which falls during the
period from 20.03.2020 to 31.12.2020 or such other date after 31.12.2020 as the
Central Government may by notification specify for completion of any proceedings or
passing of any order and where completion has not been made within such time then
the time limit for completion shall stand extended to 31.03.2021 or any date after
31.03.2021 as the Central Government may by notification specify.
From the above it is clear that section 3(1) gives the power to extend the time limit
for completion of an assessment which falls between 20.03.2020 and 31.12.2020 or
a date after 31.12.2020 which is specified. In notification number 93/2020 dated
31.12.2020, an extension was made whereby the end date which was specified in
section 3(1) of the TOLA was extended to 30.03.2021. This meant that any action for
completion of proceedings or passing of order which fell between 20.03.2020 and
30.03.2021 stood extended. The said notification also extended the time for
completion of assessment for assessments to be framed between 20.03.2020 and
30.03.2021, to 31.03.2021.
The subsequent notification No.10/2021 dated 27.02.2021 provided that where the
expiry date for completing assessment or reassessment under 153 or 153B expired
on 31.03.2021, the same would stand extended to 30.04.2021 which ofcourse was
extended to 30.06.2021 and subsequently to 30.09.2021 by Notification No.38 / 2021
dated 27.04.2021 and Notification No.74 / 2021 dated 25.06.2021 respectively, but
which is irrelevant for the present discussion. The said notification no.10 / 2021
further provided that in cases not governed by the extension through circular
No.93/2020 dated 31.12.2020 i.e., in cases where the assessment or reassessment
was not to expire on 31.03.2021 due to its extension by the Notification No.93/2020
dated 31.12.2020, the time limit for completion of assessment u/s.153 or 153B would
stand extended to 30.09.2021. From the above it can be seen that notification
No.93/2020 dated 31.12.2020 only extended the date for completion of assessment
to 31.03.2021 where they had to otherwise be completed between 20.03.2020 and
30.03.2020. No power was ever exercised by virtue of the TOLA in respect of
proceedings which had to be completed after 30.03.2021. Therefore it appears that
Notification No.10/2021 in so far as its extends the due date for normal time barrings
falling on 31.03.2021 to be completed before 30.09.2021 is without the authority of
law and consequently all such proceedings which have been completed after
31.03.2021 where the extension was not through Notification No.93/2020 dated
31.12.2020 but fell within the category of normal time barring on 31.03.2021, would
have to be struck down as having been passed beyond the time limits.
To summarize,
The power under the TOLA is to extend the timeline to complete the assessment in
respect of time barring between 20.03.2020 to 31.12.2020 or any later date after
31.12.2020, to 31.03.2021 or any later date.
Notification No. 93 of 2020 extended the period from 20.03.2020 to 31.12.2020 as
20.03.2020 to 30.03.2021 but such assessment should have been framed before
31.03.2021 as per the notification.
Notification No. 10 of 2021, further extended the time limit for assessment to be
framed between 20.03.2020 and 30.03.2021 to 30.04.2021 as against 31.03.2021.
No power was ever exercised to extend the end date stipulated by TOLA read with
Notification No.93 of 2020 as 30.03.2021, beyond that date. Therefore, Notification
No. 10 of 2021 in so far as it extends the time limit for completion of assessment,
where the normal time barring is 31.03.2021 to 30.09.2021 is without the authority of
law and consequently where the normal time barring is 31.03.2021, the assessment
framed after 31.03.2021 would be time barred and invalid.
