Section 153 of the Income Tax Act

Income-tax Act, 2025: s.286

Section 153 of the Income-tax Act, 1961 corresponds to section 286 (Time limit for completion of assessment, reassessment and recomputation) of the Income-tax Act, 2025.

Read section 286 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 153 is 21. In SB Gurbaksh Singh v. Union of India (2 SCC 181), cited in 318 of the 1,265 judgments on BharatTax that turn on this section.

Leading authorities on Section 153

21. In SB Gurbaksh Singh v. Union of India
2 SCC 181 · 2007 · Supreme Court
318
citing judgments
Commissioner of Income Tax v. Roca Bathroom Products (P) ltd.
445 ITR 537 · 2022 · High Court
269
citing judgments

The time limit for the Assessing Officer to pass a final assessment order under Section 144C(13) following directions from the Dispute Resolution Panel is determined by the specific provisions of Section 153, particularly Section 153(2A).

Shree Chamundi Mopeds Ltd. v. Church of South India Trust Association
3 SCC 1 · 1992 · Reported
267
citing judgments

If an issue has been decided by a competent court or bench, and that decision remains undisturbed by a higher court, subsequent appeals on the same issue can be dismissed as being covered by the earlier judgment, underscoring judicial discipline.

CIT v. Godavari Devi Saraf
113 ITR 589 · 1978 · High Court
235
citing judgments

An Income-tax Tribunal, operating anywhere in the country, must respect and follow the law laid down by any High Court, even if it is a non-jurisdictional High Court, as long as there is no contrary decision from another High Court on that specific legal point. The law declared by such a High Court is considered the final law of the land for the Tribunal.

Shelf Drilling 4. In ACIT (International Taxation) v. Shelf Drilling Ron Tappmeyer Ltd.
177 Taxmann.com 262 · 2025 · Supreme Court
216
citing judgments

The Supreme Court has not reached a majority verdict on whether the time spent in Dispute Resolution Panel (DRP) proceedings under Section 144C should be included within the overall limitation period prescribed by Section 153(3). Consequently, the legal position on the interplay between Sections 144C and 153 remains unresolved at the Supreme Court level.

(i) Sultana Begum v. Prem Chand Jain
1 SCC 373 · 1997 · Reported
187
citing judgments

A statute must be read as a whole, construing every clause with reference to its context and other provisions, to determine the legislature's real intention and ensure a consistent enactment. This principle, known as "ex visceribus actus," helps avoid inconsistencies within the law.

CIT v. Roca Bathroom Products (P.) Ltd.
147 Taxmann.com 224 · 2023 · Supreme Court
178
citing judgments

The grant of special leave by the Supreme Court signifies that an issue is admitted for final adjudication, and the correctness of the High Court's judgment is under scrutiny. The order granting leave does not affirm the High Court's view nor declare law; consequently, the High Court judgment loses its finality.

Shelf Drilling Ron Tappmeyer Ltd. v. ACIT\n(Intl. Taxation)
153 Taxmann.com 162 · 2023 · High Court
169
citing judgments

The time consumed in proceedings before the Dispute Resolution Panel (DRP) under Section 144C must be subsumed within the limitation period prescribed under Section 153 for the completion of assessment, meaning these timelines are not mutually exclusive.

Sultana Begum v. Prem Chand Jain
259 ITR 449 · 2003 · Supreme Court
147
citing judgments

Section 144C(4) uses a non-obstante clause to expedite the final assessment order, requiring the Assessing Officer to pass it immediately upon acceptance or lack of objection to the TPO's order, irrespective of broader time limits under Section 153.

State of Punjab v. Bhatinda District Coop. Milk Producers Union Ltd.
11 SCC 363 · 2007 · Reported
140
citing judgments

Statutory authorities must exercise their suo motu or revisional powers within a reasonable period, even if the governing statute does not prescribe a specific limitation period. What constitutes a 'reasonable period' depends on the nature of the statute, the rights and liabilities involved, and other relevant factors.

Judgments on Section 153

Tech Clarities Private Limited, Chennai vs. ITO Corporate Ward 3(3), Chennai

In the result, the appeal of the assessee is partly allowed

ITTPA 21/CHNY/2026[2022-23]Status: DisposedITAT Chennai12 Aug 2026AY 2022-23

Bench: Honourable Shri Gagan Goyal & Shri Manu Kumar Giriआयकर अपील सं./It(Tp)A No. 21/Chny/2026 यनिाारण वर्ा /Assessment Years: 2022-23 Tech Clarities Private Limited, V. The Income Tax Officer, No.104, Tiruvallur, Sriperumbodur Road, Corporate Ward-3(3) Polivakam Village, Tiruvallur Dist, Chennai. Tamil Nadu-602 002. [Pan: Aaact4112B] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Assessee By : Mr. Ashik Shah, C.A & Ms. Soundariya, C.A. Ld. Ars प्रत्यर्थी की ओर से /Revenue By : Mr. K. Jayaganesh, Cit Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 30.07.2026 घोषणाकीतारीख /Date Of Pronouncement : 11.08.2026 आदेश / O R D E R Per Gagan Goyal, Am: This Appeal By The Assessee Is Directed Against The Final Assessment Order Dated 03 November 2025 Passed Under Section 143(3) Read With Sections 144C (13) & 144(B) Of The Income-Tax Act, 1961, Pursuant To The Directions Of The Dispute Resolution Panel Dated 28 October 2025 For Assessment Year 2022-23. Grouds Of Appeal General Ground 1. The Lower Authorities' Erred In Finalizing An Order Of Assessment Which Suffers From Legal Defects Such As Being Passed In Violation Of Principles Of Natural Justice, Contrary To The Provisions Of The Income Tax Act, 1961 (The Act"), Barred By Limitation, Is Devoid Of Merits, Contrary To Facts On Record & Applicable Law & Has Been Completed Without Adequate Inquiries, Therefore Is Liable To Be Quashed.

For Appellant: Mr. Ashik Shah, C.A & MsFor Respondent: Mr. K. Jayaganesh, CIT
Section 143(2)Section 143(3)Section 144Section 144BSection 144CSection 144C(13)Section 153Section 92CSection 92C(3)Section 92D