I have an assessment order under s.10(3) of the Black Money Act. The department says the limitation was extended because a request for exchange of information was pending. How long is the period, and how much can that request add to it?
Two years, and the exchange-of-information exclusion is capped. Section 11(1) provides that no order of assessment or reassessment shall be made under s.10 after the expiry of two years from the end of the financial year in which the notice under s.10(1) was issued by the Assessing Officer. Explanation 1 to s.11 excludes, in computing that period, (i) the time taken in reopening the whole or any part of the proceeding, (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court, and (iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in s.90 or s.90A of the Income-tax Act or under s.73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives the information so requested "or a period of one year, whichever is less". The exclusion in clause (iii) therefore cannot add more than one year however long the request remains outstanding. A proviso to the Explanation extends the remaining period to sixty days where, after the exclusion, less than sixty days are left. On the machinery itself: s.10(1) empowers the Assessing Officer, on receipt of information from an income-tax authority or any other authority or on information coming to his notice, to serve a notice requiring production of accounts, documents or evidence on a date to be specified, and to serve further notices; s.10(2) allows him to make such enquiry as he considers necessary; s.10(3) requires him, after considering what he has obtained under s.10(1), what he has gathered under s.10(2) and any other evidence produced by the assessee, to assess or reassess by an order in writing and determine the sum payable; and s.10(4) provides that on a failure to comply with all the terms of the s.10(1) notice he shall, after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard, make the assessment or reassessment to the best of his judgment and determine the sum payable.
Decided by the CBDT Circulars & Instructions (Not applicable — statutory text) on 2015-07-01, reported as Sections 10 and 11 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, transcribed from incometaxindia.gov.in/w/section-10-139 (heading "Assessment", Year stamp blank, footnote 3 recording insertion of the reassessment words by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015) and incometaxindia.gov.in/w/section-11-137 (heading "Time limit for completion of assessment and reassessment", Year stamp blank, no footnote). It bears on section BMA s.10, section BMA s.10(1), section BMA s.10(3), section BMA s.10(4), section BMA s.11, section BMA s.11(1), section BMA s.11(2), section BMA s.11(3), section BMA s.12, section BMA s.15, section BMA s.18, section BMA s.19, section BMA s.3(1), section 90, section 90A of the Income Tax Act 1961, in Assessment & Scrutiny, Reassessment & Reopening and How Tax Law Is Read matters.
Three things on these two sections decide live cases. First, the limitation in s.11(1) runs from the end of the financial year in which the s.10(1) NOTICE was issued, not from the year of the asset or of the information, so the date and the validity of the notice fix the outer date of the order and a second notice cannot be used to buy a fresh period. Second, the exchange-of-information exclusion in clause (iii) of Explanation 1 is subject to the words "or a period of one year, whichever is less", which caps at one year what the department can add however long the foreign authority takes; an order that treats the exclusion as open-ended is out of time on the face of the Explanation. Third, the reassessment power in s.10 is not in the Act as enacted — the words "or reassess" in s.10(3) and "or reassessment" in s.10(4) carry a footnote recording their insertion by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015, which matters to any argument about the source of a power to reassess. THE LIBRARY ALREADY HOLDS THE DECISIONS on the contested applications and the reader should be sent to them: Bindu Todi v DDIT on whether the Taxation and Other Laws relaxation extended the s.11 limitation, Pachamuthu Kumar v ADIT on a second notice not restarting limitation, Sunil Kumar Alagh v DDIT on the s.11 exclusion, Ajay Kumar Patel v Addl CIT on a s.10 notice that did not state a year, Shantanu Bhowmick v DDIT on a defective s.10 notice not being curable under s.81, and Chetan Timblo v UOI on interim stay of a s.10(3) assessment. This entry supplies the text those decisions are applied to.
Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them.
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Section 10, heading "Assessment", reads: "(1) For the purposes of making an assessment or reassessment under this Act, the Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax Act or any other authority under any law for the time being in force or on coming of any information to his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be produced such accounts or documents or evidence as the Assessing Officer may require for the purposes of this Act and may, from time to time, serve further notices requiring the production of such other accounts or documents or evidence as he may require. (2) The Assessing Officer may make such inquiry, as he considers necessary, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year or years. (3) The Assessing Officer, after considering such accounts, documents or evidence, as he has obtained under sub-section (1), and after taking into account any relevant material which he has gathered under sub-section (2) and any other evidence produced by the assessee, shall by an order in writing, assess or reassess the undisclosed foreign income and asset and determine the sum payable by the assessee. (4) If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing Officer shall, after taking into account all the relevant material which he has gathered and after giving the assessee an opportunity of being heard, make the assessment or reassessment of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee." The words "or reassess" in sub-section (3) and "or reassessment" in sub-section (4) carry footnote marker 3, and footnote 3 on that page reads verbatim: "Inserted by the Finance (No. 2) Act, 2019, w.r.e.f. 1-7-2015." Section 11, heading "Time limit for completion of assessment and reassessment", reads: "(1) No order of assessment or reassessment shall be made under section 10 after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer. (2) Notwithstanding anything contained in sub-section (1), an order of fresh assessment in pursuance of an order passed under section 18 setting aside or cancelling an assessment, may be made at any time before the expiry of the period of two years from the end of the financial year in which the order under section 18 is received by the Principal Commissioner or the Commissioner. (3) The provisions of sub-section (1) shall not apply to the assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in an order under section 15 or section 18 or section 19 or section 22 of this Act or in an order of any court in a proceeding otherwise than by way of appeal under this Act and such assessment or reassessment may, subject to the provisions of sub-section (2), be completed at any time, before the expiry of the period of two years from the end of the financial year in which such order is received by the Principal Commissioner or the Commissioner." Explanation 1 to s.11 opens "In computing the period of limitation for the purpose of this section—" and continues: "(i) the time taken in reopening the whole or any part of the proceeding; or (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court; or (iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives, the information so requested or a period of one year, whichever is less,". The proviso that follows Explanation 1 reads: "Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly." The page also carries an Explanation 2 to s.11, whose terms are not transcribed here. The s.11 page prints no footnote.
Not a judgment. The statutory position is that under s.10(1) of the Black Money Act the Assessing Officer may, on information received from an income-tax authority or any other authority or coming to his notice, serve a notice requiring production of accounts, documents or evidence on a specified date and serve further such notices; that under s.10(2) he may make such enquiry as he considers necessary; that under s.10(3) he shall, after considering what he has obtained under sub-section (1), the material gathered under sub-section (2) and any other evidence produced by the assessee, assess or reassess by an order in writing and determine the sum payable; that under s.10(4), where the person fails to comply with all the terms of the s.10(1) notice, he shall make the assessment or reassessment to the best of his judgment after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard; that the reassessment words in s.10(3) and s.10(4) were inserted by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015; that by s.11(1) no order of assessment or reassessment may be made under s.10 after two years from the end of the financial year in which the s.10(1) notice was issued, with separate two-year periods in s.11(2) for a fresh assessment following an order under s.18 and in s.11(3) for an assessment giving effect to a finding or direction in an order under s.15, s.18, s.19 or s.22 or of a court; and that Explanation 1 excludes from that computation the time taken in reopening the proceeding, the period of a court stay, and the exchange-of-information period, the last being limited by the words "or a period of one year, whichever is less", with a proviso extending the balance to sixty days where less than sixty days remain after the exclusion.
Not a judgment; no judicial reasoning is stated for the section.
(iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives, the information so requested or a period of one year, whichever is less,
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Handle my notice → Ask a CA on WhatsAppTwo years, and the exchange-of-information exclusion is capped. Section 11(1) provides that no order of assessment or reassessment shall be made under s.10 after the expiry of two years from the end of the financial year in which the notice under s.10(1) was issued by the Assessing Officer. Explanation 1 to s.11 excludes, in computing that period, (i) the time taken in reopening the whole or any part of the proceeding, (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court, and (iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in s.90 or s.90A of the Income-tax Act or under s.73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives the information so requested "or a period of one year, whichever is less". The exclusion in clause (iii) therefore cannot add more than one year however long the request remains outstanding. A proviso to the Explanation extends the remaining period to sixty days where, after the exclusion, less than sixty days are left. On the machinery itself: s.10(1) empowers the Assessing Officer, on receipt of information from an income-tax authority or any other authority or on information coming to his notice, to serve a notice requiring production of accounts, documents or evidence on a date to be specified, and to serve further notices; s.10(2) allows him to make such enquiry as he considers necessary; s.10(3) requires him, after considering what he has obtained under s.10(1), what he has gathered under s.10(2) and any other evidence produced by the assessee, to assess or reassess by an order in writing and determine the sum payable; and s.10(4) provides that on a failure to comply with all the terms of the s.10(1) notice he shall, after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard, make the assessment or reassessment to the best of his judgment and determine the sum payable. This was decided by the CBDT Circulars & Instructions (Not applicable — statutory text) and bears on section BMA s.10, section BMA s.10(1), section BMA s.10(3), section BMA s.10(4), section BMA s.11, section BMA s.11(1), section BMA s.11(2), section BMA s.11(3), section BMA s.12, section BMA s.15, section BMA s.18, section BMA s.19, section BMA s.3(1), section 90, section 90A of the Income Tax Act 1961. It is reported as Sections 10 and 11 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, transcribed from incometaxindia.gov.in/w/section-10-139 (heading "Assessment", Year stamp blank, footnote 3 recording insertion of the reassessment words by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015) and incometaxindia.gov.in/w/section-11-137 (heading "Time limit for completion of assessment and reassessment", Year stamp blank, no footnote). Three things on these two sections decide live cases. First, the limitation in s.11(1) runs from the end of the financial year in which the s.10(1) NOTICE was issued, not from the year of the asset or of the information, so the date and the validity of the notice fix the outer date of the order and a second notice cannot be used to buy a fresh period. Second, the exchange-of-information exclusion in clause (iii) of Explanation 1 is subject to the words "or a period of one year, whichever is less", which caps at one year what the department can add however long the foreign authority takes; an order that treats the exclusion as open-ended is out of time on the face of the Explanation. Third, the reassessment power in s.10 is not in the Act as enacted — the words "or reassess" in s.10(3) and "or reassessment" in s.10(4) carry a footnote recording their insertion by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015, which matters to any argument about the source of a power to reassess. THE LIBRARY ALREADY HOLDS THE DECISIONS on the contested applications and the reader should be sent to them: Bindu Todi v DDIT on whether the Taxation and Other Laws relaxation extended the s.11 limitation, Pachamuthu Kumar v ADIT on a second notice not restarting limitation, Sunil Kumar Alagh v DDIT on the s.11 exclusion, Ajay Kumar Patel v Addl CIT on a s.10 notice that did not state a year, Shantanu Bhowmick v DDIT on a defective s.10 notice not being curable under s.81, and Chetan Timblo v UOI on interim stay of a s.10(3) assessment. This entry supplies the text those decisions are applied to. If it applies to you, the first step is this: Date the s.10(1) notice and count two years from the end of the financial year in which it was issued; that is the outer date under s.11(1) unless an exclusion in Explanation 1 is made out on the record.
Section 10, heading "Assessment", reads: "(1) For the purposes of making an assessment or reassessment under this Act, the Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax Act or any other authority under any law for the time being in force or on coming of any information to his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be produced such accounts or documents or evidence as the Assessing Officer may require for the purposes of this Act and may, from time to time, serve further notices requiring the production of such other accounts or documents or evidence as he may require. (2) The Assessing Officer may make such inquiry, as he considers necessary, for the purpose of obtaining full information in respect of undisclosed foreign income and asset of any person for the relevant financial year or years. (3) The Assessing Officer, after considering such accounts, documents or evidence, as he has obtained under sub-section (1), and after taking into account any relevant material which he has gathered under sub-section (2) and any other evidence produced by the assessee, shall by an order in writing, assess or reassess the undisclosed foreign income and asset and determine the sum payable by the assessee. (4) If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing Officer shall, after taking into account all the relevant material which he has gathered and after giving the assessee an opportunity of being heard, make the assessment or reassessment of undisclosed foreign income and asset to the best of his judgment and determine the sum payable by the assessee." The words "or reassess" in sub-section (3) and "or reassessment" in sub-section (4) carry footnote marker 3, and footnote 3 on that page reads verbatim: "Inserted by the Finance (No. 2) Act, 2019, w.r.e.f. 1-7-2015." Section 11, heading "Time limit for completion of assessment and reassessment", reads: "(1) No order of assessment or reassessment shall be made under section 10 after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer. (2) Notwithstanding anything contained in sub-section (1), an order of fresh assessment in pursuance of an order passed under section 18 setting aside or cancelling an assessment, may be made at any time before the expiry of the period of two years from the end of the financial year in which the order under section 18 is received by the Principal Commissioner or the Commissioner. (3) The provisions of sub-section (1) shall not apply to the assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in an order under section 15 or section 18 or section 19 or section 22 of this Act or in an order of any court in a proceeding otherwise than by way of appeal under this Act and such assessment or reassessment may, subject to the provisions of sub-section (2), be completed at any time, before the expiry of the period of two years from the end of the financial year in which such order is received by the Principal Commissioner or the Commissioner." Explanation 1 to s.11 opens "In computing the period of limitation for the purpose of this section—" and continues: "(i) the time taken in reopening the whole or any part of the proceeding; or (ii) the period during which the assessment proceeding is stayed by an order or injunction of any court; or (iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives, the information so requested or a period of one year, whichever is less,". The proviso that follows Explanation 1 reads: "Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly." The page also carries an Explanation 2 to s.11, whose terms are not transcribed here. The s.11 page prints no footnote. The matter was decided on 2015-07-01 by the CBDT Circulars & Instructions (Not applicable — statutory text). On those facts the CBDT Circulars & Instructions held as follows. Not a judgment. The statutory position is that under s.10(1) of the Black Money Act the Assessing Officer may, on information received from an income-tax authority or any other authority or coming to his notice, serve a notice requiring production of accounts, documents or evidence on a specified date and serve further such notices; that under s.10(2) he may make such enquiry as he considers necessary; that under s.10(3) he shall, after considering what he has obtained under sub-section (1), the material gathered under sub-section (2) and any other evidence produced by the assessee, assess or reassess by an order in writing and determine the sum payable; that under s.10(4), where the person fails to comply with all the terms of the s.10(1) notice, he shall make the assessment or reassessment to the best of his judgment after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard; that the reassessment words in s.10(3) and s.10(4) were inserted by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015; that by s.11(1) no order of assessment or reassessment may be made under s.10 after two years from the end of the financial year in which the s.10(1) notice was issued, with separate two-year periods in s.11(2) for a fresh assessment following an order under s.18 and in s.11(3) for an assessment giving effect to a finding or direction in an order under s.15, s.18, s.19 or s.22 or of a court; and that Explanation 1 excludes from that computation the time taken in reopening the proceeding, the period of a court stay, and the exchange-of-information period, the last being limited by the words "or a period of one year, whichever is less", with a proviso extending the balance to sixty days where less than sixty days remain after the exclusion.
Not a judgment; no judicial reasoning is stated for the section. In the words reproduced by the source cited on this page: "(iii) the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on which the Principal Commissioner or the Commissioner last receives, the information so requested or a period of one year, whichever is less,"
It was decided by the CBDT Circulars & Instructions on 2015-07-01 and is reported as Sections 10 and 11 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, transcribed from incometaxindia.gov.in/w/section-10-139 (heading "Assessment", Year stamp blank, footnote 3 recording insertion of the reassessment words by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015) and incometaxindia.gov.in/w/section-11-137 (heading "Time limit for completion of assessment and reassessment", Year stamp blank, no footnote). Binding on the department, not on the assessee or the courts. An assessee may rely on a circular that is beneficial to them. A CBDT circular or instruction binds officers of the department but not the assessee and not the courts. Where a circular helps you, you may hold the department to it. Where it hurts you, it cannot override the Act or a judgment. On section BMA s.10, section BMA s.10(1), section BMA s.10(3), section BMA s.10(4), section BMA s.11, section BMA s.11(1), section BMA s.11(2), section BMA s.11(3), section BMA s.12, section BMA s.15, section BMA s.18, section BMA s.19, section BMA s.3(1), section 90, section 90A, the practical question is whether the facts of your own notice match the facts of this case closely enough for the same rule to apply.
It cuts both ways and is cited by both sides. Not a judgment. The statutory position is that under s.10(1) of the Black Money Act the Assessing Officer may, on information received from an income-tax authority or any other authority or coming to his notice, serve a notice requiring production of accounts, documents or evidence on a specified date and serve further such notices; that under s.10(2) he may make such enquiry as he considers necessary; that under s.10(3) he shall, after considering what he has obtained under sub-section (1), the material gathered under sub-section (2) and any other evidence produced by the assessee, assess or reassess by an order in writing and determine the sum payable; that under s.10(4), where the person fails to comply with all the terms of the s.10(1) notice, he shall make the assessment or reassessment to the best of his judgment after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard; that the reassessment words in s.10(3) and s.10(4) were inserted by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015; that by s.11(1) no order of assessment or reassessment may be made under s.10 after two years from the end of the financial year in which the s.10(1) notice was issued, with separate two-year periods in s.11(2) for a fresh assessment following an order under s.18 and in s.11(3) for an assessment giving effect to a finding or direction in an order under s.15, s.18, s.19 or s.22 or of a court; and that Explanation 1 excludes from that computation the time taken in reopening the proceeding, the period of a court stay, and the exchange-of-information period, the last being limited by the words "or a period of one year, whichever is less", with a proviso extending the balance to sixty days where less than sixty days remain after the exclusion. It arises in Assessment & Scrutiny, Reassessment & Reopening and How Tax Law Is Read matters, on section BMA s.10, section BMA s.10(1), section BMA s.10(3), section BMA s.10(4), section BMA s.11, section BMA s.11(1), section BMA s.11(2), section BMA s.11(3), section BMA s.12, section BMA s.15, section BMA s.18, section BMA s.19, section BMA s.3(1), section 90, section 90A of the Income Tax Act 1961, and was decided by Not applicable — statutory text. Before relying on it, read the source linked on this page and check whether it has since been distinguished, overruled or overtaken by an amendment to the Income Tax Act. In practice the steps that follow from it are these. If the department relies on the exchange-of-information exclusion, make it identify the date the reference was made, the date on which the Principal Commissioner or Commissioner last received the information, and the treaty or statutory provision under which the reference was made, and then apply the cap — the exclusion is the shorter of that period and one year. Check the sixty-day proviso before conceding that an order is in time: where less than sixty days remain after an exclusion, the remaining period is extended to sixty days and no further. Distinguish a s.10(3) assessment from a s.10(4) best judgment assessment and hold the officer to the pre-conditions of whichever he has used — s.10(4) requires a failure to comply with ALL the terms of the notice, consideration of all relevant material gathered, and an opportunity of being heard. Where the order is a reassessment, note that the words "or reassess" and "or reassessment" were inserted by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015, and take instructions on whether the point is worth running on the facts.
Validity check could not be completed. The text stated is what the two departmental pages print, but currency cannot be established from them. Both pages carry a blank "Year:" field, so there is no edition stamp and no way to tell whether a later edition exists. The s.10 page carries one footnote, transcribed verbatim above, recording the insertion of the reassessment words by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015; no later amendment is recorded on either page and none can be excluded. The exact words of Explanation 2 to s.11 were NOT obtained and nothing is stated about them here. No Gazette or departmental PDF of the Act was reachable to check the sections against — the indexed Bill PDF and the whole legacy /Acts/ tree return 404. I did not read any judgment on this pass; the library's own decisions on ss.10 and 11 are named in why_it_matters and this entry makes no statement about what they hold. No source could be cited for that finding. Checking whether an authority still stands matters as much as knowing what it held: a decision may be overruled on one point and survive on another, or the provision it interprets may have been amended since. Read the source and the editor's note on this page before relying on it in a reply to an Assessing Officer or in an appeal.
SOURCING. Section 10 was taken from incometaxindia.gov.in/w/section-10-139 and s.11 from incometaxindia.gov.in/w/section-11-137, both identified by the Act name the page itself prints, not by the URL: the same /w/section-10-<k> and /w/section-11-<k> shapes serve other Acts entirely (/w/section-10-134 is a Finance Act, /w/section-11-133 is the Aadhaar Act, 2016). NO YEAR STAMP: both pages carry a "Year:" field and it is BLANK, so neither page can be dated. THE ONE FOOTNOTE FOUND, transcribed verbatim: on the s.10 page, footnote 3 reads "Inserted by the Finance (No. 2) Act, 2019, w.r.e.f. 1-7-2015." and the page attaches the marker to the words "or reassess" in sub-section (3) and "or reassessment" in sub-section (4). The s.11 page prints NO footnote, which is worth recording because s.11 as it stands refers in sub-section (3) to orders under ss.15, 18, 19 and 22 and contains an Explanation 2, and the absence of any footnote means the page records no amendment to it. WHAT I COULD NOT ESTABLISH. The exact words of EXPLANATION 2 to s.11 were not obtained. The page confirms that an Explanation 2 exists and the fetch described it as dealing with the case where undisclosed foreign income and asset is excluded from the total of one assessment year and assessed in another, but that is a description and not a transcription, and I will not state its terms. A reader who needs Explanation 2 must read the page. Similarly, s.11 has a sub-section (3) whose text I obtained and have set out, and the proviso to Explanation 1 was transcribed in fragments; the numbering of the Explanation is "Explanation 1", not a bare "Explanation". I did not establish whether s.10 has sub-sections beyond (4) and state nothing about any. THE ONE-YEAR CAP was the point a worked example turned on and the exact words were checked separately: the page prints "or a period of one year, whichever is less," at the end of clause (iii). DEAD PAGES: as recorded in the companion entry on ss.3 to 5, the legacy /Acts/BLACK MONEY .../<id>.htm addresses that the search index still returns for this Act are all 404, and the Act's landing page returns no section list to a fetch. This library shows the verification state of every entry openly. This entry has not yet been read in full by a chartered accountant. The summary reflects the sources listed on this page. Read the source before you rely on it in a reply to an Assessing Officer or in an appeal before the Commissioner (Appeals) or the Income Tax Appellate Tribunal.
Not a judgment. The statutory position is that under s.10(1) of the Black Money Act the Assessing Officer may, on information received from an income-tax authority or any other authority or coming to his notice, serve a notice requiring production of accounts, documents or evidence on a specified date and serve further such notices; that under s.10(2) he may make such enquiry as he considers necessary; that under s.10(3) he shall, after considering what he has obtained under sub-section (1), the material gathered under sub-section (2) and any other evidence produced by the assessee, assess or reassess by an order in writing and determine the sum payable; that under s.10(4), where the person fails to comply with all the terms of the s.10(1) notice, he shall make the assessment or reassessment to the best of his judgment after taking into account all relevant material gathered and after giving the assessee an opportunity of being heard; that the reassessment words in s.10(3) and s.10(4) were inserted by the Finance (No. 2) Act, 2019 with retrospective effect from 1 July 2015; that by s.11(1) no order of assessment or reassessment may be made under s.10 after two years from the end of the financial year in which the s.10(1) notice was issued, with separate two-year periods in s.11(2) for a fresh assessment following an order under s.18 and in s.11(3) for an assessment giving effect to a finding or direction in an order under s.15, s.18, s.19 or s.22 or of a court; and that Explanation 1 excludes from that computation the time taken in reopening the proceeding, the period of a court stay, and the exchange-of-information period, the last being limited by the words "or a period of one year, whichever is less", with a proviso extending the balance to sixty days where less than sixty days remain after the exclusion.
TaxSphere, “Statutory position — ss.10 and 11 of the Black Money Act: the s.10(1) notice, the enquiry, the s.10(3) assessment and the s.10(4) best judgment assessment, and the two-year limit in s.11 with the exclusions in Explanation 1 and the one-year cap on the exchange-of-information exclusion”, https://taxnotice.vittsphere.com/caselaw/case/statutory-position-bma-10-11-assessment-and-the-time-limit/ (validity last checked 2026-09-17)
The judgment itself is a government work and may be quoted freely. The summary, the validity note and the reasoning on this page are this library's own writing: quote them with attribution, and please do not present either as the words of the court — this page keeps the two apart and so should a quotation of it.
Every entry in this library links to where it was found, so you can check it yourself rather than take our word for it.
I want to appeal a Black Money Act assessment to the Commissioner (Appeals). Is there a pre-deposit, and if so on what amount — the whole demand or only the part I am not disputing?
What are the time limits, forms and fees for an appeal under the Black Money Act, and where do they differ from the Income-tax Act?
My Black Money Act assessment was passed more than two years after the s.10 notice. The Department says the covid relaxation law extended the time. Did it?
The officer issued a fresh s.10 notice two years after the first one and then assessed. Does the clock run from the second notice?
