¹[(1) Subject to the provisions of subsections (2) and (3), the assessment or return processing shall be completed before the expiry of the following periods, namely:–

(a) 2 (two) assessment years from the end of the assessment year in which the return was filed in case of return process under section 181;

(b) 2 (two) assessment years from the end of the assessment year in which the return was selected for audit under sub-section (1) of section 182;

(c) 1(one) assessment year from the end of the assessment year in which the return was considered as a normal return;

(d) 3 (three) assessment years from the end of the assessment year in which the income was first assessable in case of assessment under section 235. ]

(2) An assessment under section 212 may be made within 2 (two) years from the end of the year in which the notice under sub-section (1) of section 212 was issued.

(3) Notwithstanding anything contained in this section, limiting the time within which any action may be taken, or any order or assessment may be made, order or assessment, as the case may be, to be made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under sections 213, 285, 289, 292, 294 or 295 or, in the case of a firm, an assessment to be made on a partner of a firm in consequence of an assessment made on the firm, or an agreement reached under section 304, shall be made within thirty days from the date on which the order or the agreement was communicated and communicate such revised order to the assessee within 30 (thirty) days next following.

(4) Where an order of assessment has been set aside by any authority, the assessment shall be made within 60 (sixty) days from the date on which the order was communicated to him.

(5) Where by an order under section 213, 285, 289, 292, 294 or 295, any income is excluded from the total income of the assessee for an assessment year, an assessment of such income for another assessment year shall, for the purposes of this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order.

(6) Where by an order under section 213, 285, 289, 292, 294 or 295, any income is excluded from the total income of a person and held to be the income of another person, an assessment of such income of such other person, shall, for the purposes of this section, be deemed to be one made in consequence of or to give effect to, any finding or direction contained in the said order.

(7) Where the Deputy Commissioner of Taxes fails to give effect to any finding or direction contained in an order referred to in sub-section (3) within the period stipulated therein, such failure of the Deputy Commissioner of Taxes shall be construed as misconduct.