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7. The Honourable Mrs. Nirmala
Sitharaman, Union Finance Minister
presented the budget on February 01,
2023, and subsequently the Finance Bill,
2013 (2023) 451 ITR 1 (St), Notes on Clauses
(2023) 451 ITR 156 (St) and the
Memorandum explaining the provisions in
the Finance Bill, 2023 (2023) 451 ITR 226
(St). The Finance Bill 2023 received
presidential assent on 31/3/2023,
accordingly Finance Act 2023 is made
applicable for the Financial year 2023-24.
The Bill was introduced in Lok Sabha on
anything contained in sub-section (1) of the said 2 4 t h M a r c h , 2 0 2 3 w h e r e i n 1 2 7
section, where the income chargeable to tax amendments relating to Income Tax Act were made.
represented in the form of an asset or expenditure Extension in filing return of income in pursuance to
in relation to an event or occasion of the value notice u/s. 148:
referred to in clause (b) of sub-section (1) of the said 8. Under the earlier provisions, the period to file
section, has escaped the assessment and the return of income in pursuance to notice under
investment in such asset or expenditure in relation section 148 is subjective as 'specified in the notice'
to such event or occasion has been made or issued for re-opening, which is generally one month
incurred, in more than one previous years relevant from the date of the receipt of the notice as per
to the assessment years within the period referred current practice. This period to file return of income
to in clause (b) of sub-section (1) of the said section, is increased to three months from the end of the
notice under section 148 shall be issued for every month in which the notice is issued or such period as
such assessment year for assessment, reassessment may be allowed by Assessing Officer on basis of
or recomputation, as the case may be. application made by the assessee. It is also provided
It has also amended the first proviso to sub-section that if the return of income is filed under this section
(1) of the section 149 to provide that no notice beyond the time period allowed, then it shall not be
under section 148 shall be issued at any time in a deemed to be return under section 139.
case for the relevant assessment year beginning on In the current scenario, many a times the re-
or before 1st day of April, 2021, if a notice under assessment procedures were delayed because the
section 148 or section 153A or section 153C could assessee would not have filed a return of income.
not have been issued at that time on account of Unless the return of income was not filed, the notice
being beyond the time limit specified under the u/s. 143(2) which is mandatory to begin re-
provisions of clause (b) of subsection (1) of section assessment provisions could not be issued. This
149 or section 153A or section 153C, as the case may would delay the entire process and drag the matter
be, as they stood immediately before the towards the due date. As a consequence of this
commencement of the Finance Act, 2021. amendment, it would mean that no notice under

These amendments except for amendment in first section 143(2) shall be required to be issued for such
proviso to subsection (1) of Section 149 is effective returns filed beyond the time limit.
from 1st April, 2022. The amendment in first Extending time limit by 15 days in case of search and
proviso to subsection (1) of Section 149 is effective survey related assessments:
from 1st April, 2021. 9. In cases where search is initiated under section
Finance Act 2023: 132 of the Act or books of account, other

Keep calm and carry on. 30