Income Tax Act, 1961 Chapter XIV - Bare Act |
| State | Central Government |
| Year | 1961 |
| Section Title | Procedure for Assessment |
1[(1) Every person,
(a) being a 2[company or a firm] ; or
(b) being a person 3[other than a company or a firm], if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,
shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form4 and verified in the prescribed manner4 and setting forth such other particulars as may be prescribed4 :
Provided that a person referred to in clause (b), who is not required to furnish a return under this sub-section and residing in such area as may be specified by the Board in this behalf by notification in the Official Gazette, and who 5[during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during the previous year] fulfils any one of the following conditions, namely :
(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf ; or
(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not ; or
(iii) 6[***]
(iv) has incurred expenditure for himself or any other person on travel to any foreign country ; or
(v) is the holder of a credit card, not being an add-on card, issued by any bank or institution ; or
(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,
shall furnish a return, of his income 7[during any previous year ending before the 1st day of April, 2005], on or before the due date in the prescribed form8 and verified in the prescribed manner8 and setting forth such other particulars as may be prescribed8 :
Provided further that the Central Government may, by notification in the Official Gazette, specify the class or classes of persons to whom the provisions of the first proviso shall not apply :
Provided also that every 2[company or a firm] shall furnish on or before the due date the return in respect of its income or loss in every previous year :
9[Provided also that every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of section 10A or section 10B or section 10BA or Chapter VIA exceeded the maximum amount which is not chargeable to income tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.]
Explanation 1 : For the purposes of this sub-section, the expression motor vehicle shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
Explanation 2 : In this sub-section, due date means,
(a) where the assessee is
(i) a company ; or
(ii) a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force ; or
(iii) a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force,
the 10[30th day of September] of the assessment year ;
(b) in the case of a person other than a company, referred to in the first proviso to this sub-section, the 31st day of October of the assessment year ;
(c) in the case of any other assessee, the 31st day of July of the assessment year.
Explanation 3 : For the purposes of this sub-section, the expression travel to any foreign country does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.]
11[(1A) Without prejudice to the provisions of sub-section (1), any person, being an individual who is in receipt of income chargeable under the head Salaries may, at his option, furnish a return of his income for any previous year to his employer, in accordance with such scheme as may be specified12 by the Board in this behalf, by notification in the Official Gazette, and subject to such conditions as may be specified12 therein, and such employer shall furnish all returns of income received by him on or before the due date, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and manner as may be specified12 in that scheme, and in such case, any employee who has filed a return of his income to his employer shall be deemed to have furnished a return of income under sub-section (1), and the provisions of this Act shall apply accordingly.]
13[(1B) Without prejudice to the provisions of sub-section (1), any person, being a company or being a person other than a company, required to furnish a return of income under sub-section (1), may, at his option, on or before the due date, furnish a return of his income for any previous year in accordance with such scheme as may be specified14 by the Board in this behalf by notification in the Official Gazette and subject to such conditions as may be specified14 therein, in such form (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media) and in the manner as may be specified4 in that scheme, and in such case, the return of income furnished under such scheme shall be deemed to be a return furnished under sub-section (1), and the provisions of this Act shall apply accordingly.]
(3) If any person who has sustained a loss in any previous year under the head Profits and gains of business or profession or under the head Capital gains and claims that the loss or any part thereof should be carried forward under sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A, he may furnish, within the time allowed under sub-section (1), a return of loss in the prescribed form15 and verified in the prescribed manner and containing such other particulars as may be prescribed, and all the provisions of this Act shall apply as if it were a return under sub-section (1).
(4) Any person who has not furnished a return within the time allowed to him under sub-section (1), or within the time allowed under a notice issued under sub-section (1) of section 142, may furnish the return for any previous year at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :
Provided that where the return relates to a previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.
(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or of income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed under this Act without giving effect to the provisions of sections 11 and 12) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form15 and verified in the prescribed manner15 and setting forth such other particulars as may be prescribed15 and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).
(4B) The chief executive officer (whether such chief executive officer is known as Secretary or by any other designation) of every political party shall, if the total income in respect of which the political party is assessable (the total income for this purpose being computed under this Act without giving effect to the provisions of section 13A) exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form15 and verified in the prescribed manner15 and setting forth such other particulars as may be prescribed15 and all the provisions of this Act, shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).
16[(4C) Every
(a) 32[research association] referred to in clause (21) of section 10 ;
(b) news agency referred to in clause (22B) of section 10 ;
(c) association or institution referred to in clause (23A) of section 10 ;
(d) institution referred to in clause (23B) of section 10 ;
(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in 17[sub-clause (iiiad) or sub-clause (vi)] or any hospital or other medical institution referred to in 18[sub-clause (iiiae) or sub-clause (via)] of clause (23C) of section 10 ;
(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10,
shall, if the total income in respect of which such 32[research association], news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form19 and verified in the prescribed manner19 and setting forth such other particulars as may be presribed19 and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]
20[(4D) Every university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35, which is not required to furnish return of income or loss under any other provision of this section, shall furnish the return in respect of its income or loss in every previous year and all the provisions of this Act shall, so far as may be, apply as if it were a return required to be furnished under sub-section (1).]
(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :
Provided that where the return relates to the previous year relevant to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, the reference to one year aforesaid shall be construed as a reference to two years from the end of the relevant assessment year.
(6) The prescribed form of the returns referred to in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142 shall, in such cases as may be prescribed, require the assessee to furnish the particulars of income exempt from tax, assets of the prescribed nature 21[, value and belonging to him, his bank account and credit card held by him] expenditure exceeding the prescribed limits incurred by him under prescribed heads and such other outgoings as may be prescribed.
(6A) Without prejudice to the provisions of sub-section (6), the prescribed form of the returns referred to in this section, and in clause (i) of sub-section (1) of section 142 shall, in the case of an assessee engaged in any business or profession, also require him to furnish the report of any audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, a copy of such report together with proof of furnishing the report, the particulars of the location and style of the principal place where he carries on the business or profession and all the branches thereof, the names and addresses of his partners, if any, in such business or profession and, if he is a member of an association or body of individuals, the names of the other members of the association or the body of individuals and the extent of the share of the assessee and the shares of all such partners or the members, as the case may be, in the profits of the business or profession and any branches thereof.
(7) 14a[***]
(8) (a) 22Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then whether or not the Assessing Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2), the assessee shall be liable to pay simple interest at fifteen per cent per annum, reckoned from the day immediately following the specified date to the date of the furnishing of the return or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source : Provided that the Assessing Officer may, in such cases and under such circumstances as may be prescribed23, reduce or waive the interest payable by any assessee under this sub-section.
Explanation 1 : For the purposes of this sub-section, specified date, in relation to a return for an assessment year, means,
(a) in the case of every assessee whose total income, or the total income of any person in respect of which he is assessable under this Act, includes any income from business or profession, the date of the expiry of four months from the end of the previous year or where there is more than one previous year, from the end of the previous year which expired last before the commencement of the assessment year or the 30th day of June of the assessment year, whichever is later ;
(b) in the case of every other assessee, the 30th day of June of the assessment year.
Explanation 2 : Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section.
(b) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount of tax on which interest was payable under this sub-section has been increased or reduced as the case may be, the interest shall be increased or reduced accordingly, and
(i) in a case where the interest is increased, the Assessing Officer shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly ;
(ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded.
(c) The provisions of this sub-section shall apply in respect of the assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, and references therein to the other provisions of this Act shall be construed as references to the said provisions as they were applicable to the relevant assessment year.
(9) Where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the Assessing Officer may, in his discretion, allow ; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return :
Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the Assessing Officer may condone the delay and treat the return as a valid return.
Explanation : For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely :
(a) the annexures, statements and columns in the return of income relating to computation of income chargeable under each head of income, computation of gross total income and total income have been duly filled in ;
(b) the return is accompanied by a statement showing the computation of the tax payable on the basis of the return ;
(bb) the return is accompanied by the report of the audit referred to in section 44AB, or, where the report has been furnished prior to the furnishing of the return, by a copy of such report together with proof of furnishing the report ;
(c) the return is accompanied by proof of
(i) the tax, if any, claimed to have been 24[25[deducted or collected at source] 26[***] and] the advance tax and tax on self-assessment, if any, claimed to have been paid :
27[Provided that where the return is not accompanied by proof of the tax, if any, 28[claimed to have been deducted or collected at source], the return of income shall not be regarded as defective if
29[(a) a certificate for tax deducted or collected was not furnished under section 203 or section 206C to the person furnishing his return of income;]
(b) such certificate is produced within a period of two years specified under sub-section (14) of section 155 ;]
(ii) the amount of compulsory deposit, if any, claimed to have been made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 (38 of 1974) ;
(d) where regular books of account are maintained by the assessee, the return is accompanied by copies of
(i) manufacturing account, trading account, profit and loss account or, as the case may be, income and expenditure account or any other similar account and balance sheet ;
(ii) in the case of a proprietary business or profession, the personal account of the proprietor ; in the case of a firm, association of persons or body of individuals, personal accounts of the partners or members ; and in the case of a partner or member of a firm, association of persons or body of individuals, also his personal account in the firm, association of persons or body of individuals ;
(e) where the accounts of the assessee have been audited, the return is accompanied by copies of the audited profit and loss account and balance sheet and the auditors report and, where an audit of cost accounts of the assessee has been conducted under section 233B of the Companies Act, 1956 (1 of 1956), also the report under that section ;
(f) where regular books of account are not maintained by the assessee, the return is accompanied by a statement indicating the amounts of turnover or, as the case may be, gross receipts, gross profit, expenses and net profit of the business or profession and the basis on which such amounts have been computed, and also disclosing the amounts of total sundry debtors, sundry creditors, stock-in-trade and cash balance as at the end of the previous year.
30[***]
(10) 31[***]
___________________________________
1. Substituted by the Finance Act, 2001, with effect from 1st April, 2001. Prior to substitution, sub-section (1) as amended by the Finance Act, 1997, with effect from 1st April, 1997 ; Finance (No. 2) Act, 1998, with effect from 1st August, 1998 and Finance Act, 1999, with effect from 1st June, 1999, stood as under :
(1) Every person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided that a person, not furnishing return under this sub-section and residing in such area as may be specified by the Board in this behalf by a notification in the Official Gazette, and who at any time during the previous year fulfils any one of the following conditions, namely :
(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf ; or
(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not ; or
(iii) is a subscriber to a telephone ; or
(iv) has incurred expenditure for himself or any other person on travel to any foreign country ;
(v) is the holder of the credit card, not being an add-on card, issued by any bank or institution ; or
(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more :
shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided further that the Central Government may, by notification in the Official Gazette, specify class or classes of persons to whom the provisions of the first proviso shall not apply.
Explanation 1 : In this sub-section, due date means
(a) where the assessee is a company, the 30th day of November of the assessment year;
(b) where the assessee is a person, other than a company,
(i) in a case where the accounts of the assessee are required under this Act or any other law to be audited or where the report of an accountant is required to be furnished under section 80HHC or section 80HHD or where the prescribed certificate is required to be furnished under section 80R or section 80RR or subsection (1) of section 80RRA, or in the case of a co-operative society or in the case of a working partner of a firm whose accounts are required under this Act or any other law to be audited, the 31st day of October of the assessment year ;
(ii) in a case where the total income referred to in this sub-section includes any income from business or profession, not being a case falling under sub-clause (i), the 31st day of August of the assessment year ;
(iii) in any other case, the 30th day of June of the assessment year.
Explanation 2 : For the purposes of sub-clause (i) of clause (b) of Explanation 1, the expression working partner shall have the meaning assigned to it in Explanation 4 of clause (b) of section 40.
Explanation 3 : For the purposes of this sub-section, the expression motor vehicle shall have the meaning assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
Explanation 4 : For the purposes of this sub-section, the expression travel to any foreign country does not include travel to the neighbouring countries or to such places of pilgrimage as the Board may specify in this behalf by notification in the Official Gazette.
2. Substituted for company by the Finance Act, 2005, with effect from 1st April, 2006.
3. Substituted for other than a company by the Finance Act, 2005, with effect from 1st April, 2006.
4. See rule 12.
5. Substituted for at any time during the previous year by the Finance Act, 2005, with effect from 1st April, 2006.
6. Omitted by the Finance Act, 2005, with effect from 1st April, 2006. Prior to omission, clause (iii) as amended by the Finance Act, 2002, with effect from 1st April, 2002, stood as under :
(iii) is a subscriber to a cellular telephone not being a wireless in local loop telephone ; or
7. Substituted for during the previous year by the Finance Act, 2006, with effect from 1st April, 2006.
8. See rule 12 and Form No. 2C.
9. Inserted by the Finance Act, 2005, with effect from 1st April, 2006.
10. Substituted for 31st day of October by the Finance Act, 2008, with effect from 1st April, 2008.
11. Inserted by the Finance Act, 2002, with effect from 1st April, 2002.
12. See Scheme for Bulk Filing of Returns by Salaried Employees, 2002 and Scheme for Filing of Returns by Salaried Employees Through Employer, 2004. See Mashbras Income-tax Rules.
13. Inserted by the Finance Act, 2003, with effect from 1st April, 2003.
14. See Electronic Furnishing of Return of Income Scheme, 2007, and, Furnishing of Return of Income on Internet Scheme, 2004. For Scheme, see Mashbras Income-tax Rules.
14a. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989.
15. See rules 12 and 12A. For analysis, see Mashbras Income-tax Rules.
16. Inserted by the Finance Act, 2002, with effect from 1st April, 2003.
17. Substituted for sub-clause (vi) by the Taxation Laws (Amendment) Act, 2006, with effect from 1st April, 2006.
18. Substituted for sub-clause (via) by the Taxation Laws (Amendment) Act, 2006, with effect from 1st April, 2006.
19. See rule 12. For analysis, see Mashbras Income-tax Rules.
20. Inserted by the Taxation Laws (Amendment) Act, 2006, with effect from 1st April, 2006.
21. Substituted for and value and belonging to him by the Finance Act, 1999, with effect from 1st June, 1999.
22. See rule 119A. For analysis see Mashbras Income-tax Rules.
23. See rule 117A. For analysis see Mashbras Income-tax Rules.
24. Substituted for deducted at source and by the Finance (No. 2) Act, 2004, with effect from 1st April, 2005.
25. Substituted for deducted at source by the Finance Act, 2006, with effect from 1st April, 2007.
26. Expression before the 1st day of April, 2008 omitted by the Finance Act, 2008, with effect from 1st April, 2008. Earlier the quoted portion was substituted for before the 1st day of April, 2006 by the Finance Act, 2006, with effect from 1st April, 2006 and before the 1st day of April, 2006 was substituted for before the 1st day of April, 2005 by the Finance Act, 2005, with effect from 1st April, 2005.
27. Inserted by the Finance Act, 2002, with effect from 1st June, 2002.
28. Substituted for claimed to have been deducted by source by the Finance Act, 2006, with effect from 1st April, 2007.
29. Substituted by the Finance Act, 2006, with effect from 1st April, 2007. Prior to substitution, clause (a) stood as under:
(a) a certificate for tax deducted was not furnished under section 203 to the person furnishing his return of income ;
30. Proviso omitted by the Finance Act, 2007, with effect from 1st June, 2006. Prior to omission, the proviso as inserted by the Finance Act, 2006, from the same date, stood as under:
Provided that the Board may, by rules made by it,--
(a) dispense, for a class or classes of persons, with any of the conditions specified in clauses (a) to (f); or
(b) include any of the conditions specified in clauses (a) to (f) of this Explanation in the form of return prescribed under sub-section (1) or sub-section (6) of this section.
31. Omitted by the Finance (No. 2) Act, 1991, with effect from 1st April, 1991.
32. Substituted by the Finance Act, 2010 w.e.f. 01.04.2011 for the following : "scientific research association".
(1) Every person, -
(i) if his total income or the total income of any other person in respect of which he is assessable under this Act during any previous year exceeded the maximum amount which is not chargeable to income-tax ; or
(ii) carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed 1[five lakh rupees] in any previous year ; or
(iii) who is required to furnish a return of income under 2[sub-section (4A) of section 139 ; or
(iv) being an employer, who is required to furnish a return of fringe
benefits under section 115WD,] and who has not been allotted a permanent account number shall, within such time, as may be prescribed3, apply to the Assessing Officer for the allotment of a permanent account number.
4[(1A) Notwithstanding anything contained in sub-section (1), the Central Government may, by notification in the Official Gazette, specify, any class or classes of persons by whom tax is payable under this Act or any tax or duty is payable under any other law for the time being in force including importers and exporters whether any tax is payable by them or not and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number.]
5[(1B) Notwithstanding anything contained in sub-section (1), the Central Government may, for the purpose of collecting any information which may be useful for or relevant to the purposes of this Act, by notification in the Official Gazette, specify, any class or classes of persons who shall apply to the Assessing Officer for the allotment of the permanent account number and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number.]
6[(2) The Assessing Officer, having regard to the nature of the transactions as may be prescribed, may also allot a permanent account number, to any other person (whether any tax is payable by him or not), in the manner and in accordance with the procedure as may be prescribed.]
(3) Any person, not falling under sub-section (1) or sub-section (2), may apply to the Assessing Officer for the allotment of a permanent account number and thereupon, the Assessing Officer shall allot a permanent account number to such person forthwith.
(4) For the purpose of allotment of permanent account numbers under the new series, the Board may, by notification in the Official Gazette, specify the date from which the persons referred to in sub-sections (1) and (2) and other persons who have been allotted permanent account numbers and residing in a place to be specified in such notification, shall, within such time as may be specified, apply to the Assessing Officer for the allotment of a permanent account number under the new series and upon allotment of such permanent account number to a person, the permanent account number, if any, allotted to him earlier shall cease to have effect :
Provided that the persons to whom permanent account number under the new series has already been allotted shall not apply for such number again.
(5) Every person shall -
(a) quote such number in all his returns to, or correspondence with, any income-tax authority ;
(b) quote such number in all challans for the payment of any sum due under this Act ;
(c) quote such number in all documents pertaining to such transactions as may be prescribed7 by the Board in the interests of the revenue, and entered into by him :
Provided that the Board may prescribe1 different dates for different transactions or class of transactions or for different class of persons :
8[Provided further that a person shall quote general index register number till such time permanent account number is allotted to such persons ;]
(d) intimate the Assessing Officer any change in his address or in the name and nature of his business on the basis of which the permanent account number was allotted to him.
9[(5A) Every person receiving any sum or income or amount from which tax has been deducted under the provisions of Chapter XVIIB, shall intimate his permanent account number to the person responsible for deducting such tax under that Chapter :
10[Proviso omitted by the Finance (No. 2) Act, 2004, with effect from 1st April 2005.] Provided further that a person referred to in this sub-section, shall intimate the General Index Register Number till such time permanent account number is allotted to such person.]
11[(5B) Where any sum or income or amount has been paid after deducting tax under Chapter XVIIB, every person deducting tax under that Chapter shall quote the permanent account number of the person to whom such sum or income or amount has been paid by him -
(i) in the statement furnished in accordance with the provisions of subsection (2C) of section 192 ;
(ii) in all certificates furnished in accordance with the provisions of section 203;
(iii) in all returns prepared and delivered or caused to be delivered in accordance with the provisions of section 206 to any income-tax authority;
12[(iv) in all 20[***] statements prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (3) of section 200 :]
Provided that the Central Government may, by notification in the Official Gazette, specify different dates from which the provisions of this sub-section shall apply in respect of any class or classes of persons :
Provided further that nothing contained in sub-sections (5A) and (5B) shall apply in case of a person whose total income is not chargeable to income-tax or who is not required to obtain permanent account number under any provision of this Act if such person furnishes to the person responsible for deducting tax, a declaration referred to in section 197A in the form and manner prescribed thereunder to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil.]
11[(5C) Every 13[buyer or licensee or lessee] referred to in section 206C shall intimate his permanent account number to the 5[person responsible for collecting tax] referred to in that section.]
11[(5D) Every 14[person] collecting tax in accordance with the provisions of section 206C shall quote the permanent account number of every 13[buyer or licensee or lessee] referred to in that section -
(i) in all certificates furnished in accordance with the provisions of subsection (5) of section 206C ;
(ii) in all returns prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (5A) or sub-section (5B) of section 206C to an income-tax authority;]
15[(iii) in all 20[***] statements prepared and delivered or caused to be delivered in accordance with the provisions of sub-section (3) of section 206C.]
(6) Every person receiving any document relating to a transaction prescribed under clause (c) of sub-section (5) shall ensure that the permanent account number 16[or the general index register number] has been duly quoted in the document.
(7) No person who has already been allotted a permanent account number under the new series shall apply, obtain or possess another permanent account number.
17[Explanation : For the removal of doubts, it is hereby declared that any person, who has been allotted a permanent account number under any clause other than clause (iv) of sub-section (1), shall not be required to obtain another permanent account number and the permanent account number already allotted to him shall be deemed to be the permanent account number in relation to fringe benefit tax.]
(8) The Board may make rules18 providing for -
(a) the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain ;
(b) the categories of transactions in relation to which permanent account numbers 16[or the general index register number] shall be quoted by every person in the documents pertaining to such transactions ;
(c) the categories of documents pertaining to business or profession in which such numbers shall be quoted by every person ;
16[(d) class or classes of persons to whom the provisions of this section shall not apply ;]
16[(e) the form and the manner in which the person who has not been allotted a permanent account number or who does not have general index register number shall make his declaration ;]
16[(f) the manner in which the permanent account number or the general index register number shall be quoted in respect of the categories of transactions referred to in clause (b) ;]
16[(g) the time and the manner in which the transactions referred to in clause (b) shall be intimated to the prescribed authority.]
Explanation : For the purposes of this section, -
(a) "Assessing Officer" includes an income-tax authority who is assigned the duty of allotting permanent account numbers ;
(b) "permanent account number" means a number which the Assessing Officer may allot to any person for the purpose of identification and includes a permanent account number allotted under the new series ;
(c) "permanent account number under the new series" means a permanent account number having ten alphanumeric characters and issued in the form of a laminated card ;
19[(d) "general index register number" means a number given by an Assessing Officer to an assessee in the general index register maintained by him and containing the designation and particulars of the ward or circle or range of the Assessing Officer].
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1. Substituted for 'fifty thousand rupees' by the Finance (No. 2) Act, 1998, with effect from 1st August, 1998.
2. Substituted for "sub-section (4A) of section 139" by the Finance Act, 2005, with effect from 1st April, 2006.
3. See rule 114 and Form No. 49A.
4. Inserted by the Finance Act, 2000 with effect from 1st June, 2000.
5. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
6. Substituted by the Finance Act, 2006 with effect from 1st June, 2006. Prior to substitution sub-section (2) stood as under :
"(2) The Assessing Officer may also allot to any other person by whom tax is payable, a permanent account number."
7. See rules 114B to 114D and Form Nos. 60 and 61.
8. Inserted by the Finance (No. 2) Act, 1998, with effect from 1st August, 1998.
9. Inserted by the Finance Act, 2001, with effect from 1st June, 2001.
10. Prior to omission, the proviso stood as under : 'Provided that nothing contained in this sub-section shall apply to a non-resident referred to in sub-section (4) of section 115AC, or sub-section (2) of section 115BBA, or to a nonresident Indian referred to in section 115G'.
11. Inserted by the Finance Act, 2001, with effect from 1st June, 2001.
12. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
13. Substituted for "buyer" by the Finance (No. 2) Act, 2004, with effect from 1st October, 2004.
14. Substituted for "seller" by the Finance Act, 2006, with effect from 1st April, 2007.
15. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
16. Inserted by the Finance (No. 2) Act, 1998, with effect from 1st August, 1998.
17. Inserted by the Finance Act, 2005, with effect from 1st April, 2006.
18. See rules 114 and 114B to 114D and Form Nos. 49A, 60 and 61. For analysis see Mashbra's Income-tax Rules.
19. Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1st August, 1998.
20. Omitted by the Finance (No. 2) Act, 2009 w.e.f. 1st October, 2009 for the following : -
"quarterly"
1[(1) For the purpose of enabling any specified class or classes of persons in preparing and furnishing returns of income, the Board may, without prejudice to the provisions of section 139, frame a Scheme, by notification2 in the Official Gazette, providing that such persons may furnish their returns of income through a Tax Return Preparer authorised to act as such under the Scheme.
(2) Every Tax Return Preparer shall assist the persons furnishing the return of income in such manner as may be specified in the Scheme framed under this section and affix his signature on such return.
(3) For the purposes of this section,--
(a) Tax Return Preparer means any individual, [not being a person referred to in clause (ii) or clause (iii) or clause (iv) of sub-section (2) of section 288 or an employee of the specified class or classes of persons], who has been authorised to act as a Tax Return Preparer under the Scheme framed under this section;
(b) Specified class or classes of persons means any person, other than a company or a person, whose accounts are required to be audited under section 44AB or under any other law for the time being in force, who is required to furnish a return of income under this Act.
(4) The Scheme framed by the Board under this section may provide for the following, namely :
(a) the manner in which and the period for which the Tax Return Preparers shall be authorised under sub-section (3);
(b) the educational and other qualifications to be possessed, and the training and other conditions required to be fulfilled, by a person to act as a Tax Return Preparer;
(c) the code of conduct for the Tax Return Preparers;
(d) the duties and obligations of the Tax Return Preparers;
(e) the circumstances under which the authorisation given to a Tax Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be, specified by the Scheme for the purposes of this section.
(5) Every Scheme framed by the Board under this section shall be laid, as soon as may be after it is framed, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the Scheme should not be framed, the Scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Scheme.]
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1. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
2. Tax Return Preparer Scheme, 2006 [S.O. 2039(E), dated 28-11-2006, effective from 1-12-2006]. For text of Scheme, see 16 CAPJ 902 or Mashbras Income-tax Rules.
1[(1) The Board may make rules providing for a class or classes of persons who may not be required to furnish documents, statements, receipts, certificates, reports of audit or any other documents, which are otherwise under any other provisions of this Act, except section 139D, required to be furnished, along with the return but on demand to be produced before the Assessing Officer.
(2) Any rule made under the proviso to sub-section (9) of section 139 as it stood immediately before its omission by the Finance Act, 2007 shall be deemed to have been made under the provisions of this section.]
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1. Inserted by the Finance Act, 2007, with retrospective effect from 1st June, 2006.
1[The Board may make rules providing for
(a) the class or classes of persons who shall be required to furnish the return in electronic form;
(b) the form and the manner in which the return in electronic form may be furnished;
(c) the documents, statements, receipts, certificates or audited reports which may not be furnished along with the return in electronic form but shall be produced before the Assessing Officer on demand;
(d) the computer resource or the electronic record to which the return in electronic form may be transmitted.]
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1. Inserted by the Finance Act, 2007, with retrospective effect from 1st June, 2006.
Thereturn under 1 [section 115WD or] section 139 shall be signed and verified-
2 [(a) inthecase of an individual,-
(i) by the individual himself;
(ii) where he is absent from India, by the individual himself or by someperson duly authorised by him in this behalf;
(iii) where he is mentally incapacitated from attending to his affairs, by hisguardian or any other person competent to act on his behalf; and
(iv) where, for any other reason, it is not possible for the individual tosign the return, by any person duly authorised by him in this behalf:
Provided that in a case referred to in sub-clause (ii) or sub-clause (iv) ,the person signing the return holds a valid power of attorney from theindividual to do so, which shall be attached to the return;]
(b) in the case of a Hindu undivided family, by the karta, and, where thekarta is absent from India or is mentally incapacitated from attending to hisaffairs, by any other adult member of such family;
3 [(c) inthe case of a company, by the managing director thereof, or where for anyunavoidable reason such managing director is not able to sign and verify thereturn, or where there is no managing director, by any director thereof :
4 [Providedthat where the company is not resident in India, the return may be signed andverified by a person who holds a valid power of attorney from such company to doso, which shall be attached to the return :
Provided furtherthat,-
(a) where the company is being wound up, whether under the orders of a courtor otherwise, or where any person has been appointed as the receiver of anyassets of the company, the return shall be signed and verified by the liquidatorreferred to in sub-section (1) of section 178;
(b) where the management of the company has been taken over by the CentralGovernment or any State Government under any law, the return of the companyshall be signed and verified by the principal officer thereof;]
(cc) in the case of a firm, by the managing partner thereof, or where for anyunavoidable reason such managing partner is not able to sign and verify thereturn, or where there is no managing partner as such, by any partner thereof,not being a minor;
5[(cd) in the case of a limited liability partnership, by the designated partner thereof, or where for any unavoidable reason such designated partner is not able to sign and verify the return, or where there is no designated partner as such, by any partner thereof.]
(d) in the case of a local authority, by the principal officer thereof;]
4 [(dd) in the case of a political party referred to in sub-section (4B) of section 139, by the chief executive officer of such party (whether such chiefexecutive officer is known as secretary or by any other designation) ;]
(e) in the case of any other association, by any member of the association orthe principal officer thereof; and
(f) in the case of any other person, by that person or by some personcompetent to act on his behalf.
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1. Inserted by the Finance Act, 2005, w.e.f. 1st April, 2006.
2. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1st April, 1989.
3. Substituted for clauses (c) and(d) by the Taxation Laws(Amendment) Act, 1975, w.e.f. 1st April, 1976.
4. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1st April, 1989.
5. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1st April, 2010.
(1) Where any tax is payable on the basis of any return required to be furnished under 1[section 115WD or section 115WH or section 139] or section 142 2[or section 148 or 3[, section 153A or, as the case may be, section 158BC]], 4[after taking into account, -
(i) the amount of tax, if any, already paid under any provision of this Act;
(ii) any tax deducted or collected at source;
(iii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;
(iv) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and
(v) any tax credit claimed to be set-off in accordance with the provisions of section 115JAA,]
the assessee shall be liable to pay such tax, together with interest payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return and the return shall be accompanied by proof of payment of such tax and interest.
Explanation : Where the amount paid by the assessee under this sub-section falls short of the aggregate of the tax and interest as aforesaid, the amount so paid shall first be adjusted towards the interest payable as aforesaid and the balance, if any, shall be adjusted towards the tax payable.
5[(1A) For the purposes of sub-section (1), interest payable,
6[(i) under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the amount of,
(a) advance tax, if any, paid;
(b) any tax deducted or collected at source;
(c) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;
(d) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and
(e) any tax credit claimed to be set-off in accordance with the provisions of section 115JAA;]
(ii) under section 115WK shall be computed on the amount of tax on the value of the fringe benefits as declared in the return as reduced by the advance tax, paid, if any.]
7[(1B) For the purposes of sub-section (1), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax.
8[Explanation : For the purposes of this sub-section, assessed tax means the tax on the total income as declared in the return as reduced by the amount of, --
(i) tax deducted or collected at source, in accordance with the provisions of Chapter XVII, on any income which is subject to such deduction or collection and which is taken into account in computing such total income;
(ii) any relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside India;
(iii) any relief of tax claimed under section 90A on account of tax paid in any specified territory outside India referred to in that section; and
(iv) any tax credit claimed to be set-off in accordance with the provisions of section 115JAA.]]
(2) After a regular assessment under 9[section 115WE or section 115WF or section 143] or section 144 10[or 11[an assessment under section 153A or section 158BC]] has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards such regular assessment 10[or assessment, as the case may be].
(3) If any assessee fails to pay the whole or any part of such tax or interest or both in accordance with the provisions of sub-section (1), he shall, without prejudice to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or both remaining unpaid, and all the provisions of this Act shall apply accordingly.
(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.
___________________________________
1. Substituted for section 139 by the Finance Act, 2005, with effect from 1st April, 2006.
2. Substituted for or, as the case may be, section 148 by the Finance Act, 1999, with effect from 1st June, 1999.
3. Substituted for , as the case may be, section 158BC by the Finance Act, 2003, with effect from 1st June, 2003.
4. Substituted for after taking into account the amount of tax, if any, already paid under any provision of this Act by the Finance Act, 2006, with effect from 1st April, 2007.
5. Substituted by the Finance Act, 2005, with effect from 1st April, 2006. Prior to substitution, sub-section (1A) as inserted by the Finance Act, 2001, with retrospective effect from 1st April, 1989, stood as under:
(1A) For the purposes of sub-section (1), interest payable under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source.
6. Substituted by the Finance Act, 2006, with effect from 1st April, 2007. Prior to substitution, clause (i) stood as under:
(i) under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source;
7. Inserted by the Finance Act, 2001, with retrospective effect from 1st April, 1989.
8. Substituted by the Finance Act, 2006, with effect from 1st April, 2007. Prior to substitution, the Explanation stood as under:
Explanation : For the purposes of this sub-section, assessed tax means the tax on the total income as declared in the return as reduced by the amount of tax deducted or collected at source, in accordance with the provisions of Chapter XVII, on any income which is subject to such deduction or collection and which is taken into account in computing such total income.
9. Substituted for section 143 by the Finance Act, 2005, with effect from 1st April, 2006.
10. Inserted by the Finance Act, 1999, with effect from 1st June, 1999.
11. Substituted for an assessment under section 158BC by the Finance Act, 2003, with effect from 1st June, 2003.
1[***]
_____________________________
1. Omitted by the Taxation Laws (Amendment) Act, 1970, with effect from 1st April, 1971.
1[***]
_____________________________
1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989.
(1) For the purpose of making an assessment under this Act, the Assessing Officer may serve on any person who has made a return 1[under section 115WD or section 139 or in whose case the time allowed under sub-section (1) of section 139] for furnishing the return has expired a notice requiring him, on a date to be therein specified, -
(i) where such person has not made a return 2[within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year], to furnish a return of his income or the income of any other person in respect of which he is assessable under this Act, in the prescribed form3 and verified in the prescribed manner3 and setting forth such other particulars as may be prescribed3, or
4[Provided that where any notice has been served under this sub-section for the purposes of this clause after the end of the relevant assessment year commencing on or after the 1st day of April, 1990 to a person who has not made a return within the time allowed under sub-section (1) of section 139 or before the end of the relevant assessment year, any such notice issued to him shall be deemed to have been served in accordance with the provisions of this sub-section.]
(ii) 5to produce, or cause to be produced, such accounts or documents as the Assessing Officer may require, or
(iii) to furnish in writing and verified in the prescribed5 manner information in such form and on such points or matters (including a
statement of all assets and liabilities of the assessee, whether included in the accounts or not) as the Assessing Officer may require:
Provided that
(a) the previous approval of the 6[Joint Commissioner] shall be obtained before requiring the assessee to furnish a statement of all assets and liabilities not included in the accounts ;
(b) the Assessing Officer shall not require the production of any accounts relating to a period more than three years prior to the previous year.
(2) For the purpose of obtaining full information in respect of the income or loss of any person, the Assessing Officer may make such inquiry as he considers necessary.
(2A) If, at any stage of the proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts of the assessee and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Chief Commissioner or Commissioner, direct the assessee to get the accounts audited by an accountant, as defined in the Explanation below sub-section (2) of section 288, nominated by the Chief Commissioner or Commissioner in this behalf and to furnish a report of such audit in the prescribed form7 duly signed and verified by such accountant and setting forth such particulars as may be prescribed7 and such other particulars as the Assessing Officer may require :
8[Provided that the Assessing Officer shall not direct the assessee to get the accounts so audited unless the assessee has been given a reasonable opportunity of being heard.]
(2B) The provisions of sub-section (2A) shall have effect notwithstanding that the accounts of the assessee have been audited under any other law for the time being in force or otherwise.
(2C) Every report under sub-section (2A) shall be furnished by the assessee to the Assessing Officer within such period as may be specified by the Assessing Officer :
Provided that the Assessing Officer may, 9[suo motu, or on an application] made in this behalf by the assessee and for any good and sufficient reason, extend the said period by such further period or periods as he thinks fit ; so, however, that the aggregate of the period originally fixed and the period or periods so extended shall not, in any case, exceed one hundred and eighty days from the date on which the direction under sub-section (2A) is received by the assessee.
(2D) The expenses of, and incidental to, any audit under sub-section (2A) (including the remuneration of the accountant) shall be determined by the Chief Commissioner or Commissioner (which determination shall be final) and paid by the assessee and in default of such payment, shall be recoverable from the assessee in the manner provided in Chapter XVIID for the recovery of arrears of tax :
8[Provided that where any direction for audit under sub-section (2A) is issued by the Assessing Officer on or after the 1st day of June, 2007, the expenses of, and incidental to, such audit (including the remuneration of the Accountant) shall be determined by the Chief Commissioner or Commissioner in accordance with such guidelines as may be prescribed10 and the expenses so determined shall be paid by the Central Government.]
(3) The assessee shall, except where the assessment is made under section 144, be given an opportunity of being heard in respect of any material gathered on the basis of any inquiry under sub-section (2) or any audit under sub-section (2A) and proposed to be utilised for the purpose of the assessment.
(4) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.
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1. Substituted for under section 139 or in whose case the time allowed under sub-section (1) of that section by the Finance Act, 2005, with effect from 1st April, 2006.
2. Substituted for within the time allowed under sub-section (1) of section 139 by the Finance Act, 2006, with effect from 1st April, 2006.
3. See rules 12 and 12A. For analysis, see Mashbras Income-tax Rules.
4. Inserted by the Finance Act, 2006 with retrospective effect from 1st April, 1990.
5. See rule 14. For analysis, see Mashbras Income-tax Rules.
6. Substituted for Deputy Commissioner by the Finance (No. 2) Act, 1998, with effect from 1st October, 1998.
7. See rule 14A and Form No. 6B. For analysis, see Mashbras Income-tax Rules.
8. Inserted by the Finance Act, 2007, with effect from 1st June, 2007.
9. Substituted for on an application by the Finance Act, 2008, with effect from 1st April 2008.
10. See rule 14B.
1[(1) For the purposes of making an assessment or re-assessment under this Act, where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or 2[section 69B or fair market value of any property referred to in sub-section (2) of section 56 is required to be made], the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him.
(2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957 (27 of 1957).
(3) On receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, take into account such report in making such assessment or re-assessment:
Provided that nothing contained in this section shall apply in respect of an assessment made on or before the 30th day of September, 2004, and where such assessment has become final and conclusive on or before that date, except in cases where a reassessment is required to be made in accordance with the provisions of section 153A.
Explanation : In this section, Valuation Officer has the same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).]
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1. Inserted by the Finance (No. 2) Act, 2004, with retrospective effect from 15th November, 1972.
2. Substituted by the Finance Act, 2010 w.e.f. 01.07.2010 for the following :" section 69B is required to be made"
143. 1[Assessment
17[(1) Where a return has been made under section 139, or in response to a notice under subsection (1) of section 142, such return shall be processed in the following manner, namely:--
(a) the total income or loss shall be computed after making the following adjustments, namely:--
(i) any arithmetical error in the return; or
(ii) an incorrect claim, if such incorrect claim is apparent from any information in the return;
(b) the tax and interest, if any, shall be computed on the basis of the total income computed under clause (a);
(c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest;
(d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and
(e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee:
Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him:
Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.
Explanation.For the purposes of this sub-section,--
(a) an incorrect claim apparent from any information in the return shall mean a claim, on the basis of an entry, in the return,--
(i) of an item, which is inconsistent with another entry of the same or some other item in such return;
(ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or
(iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction;
(b) the acknowledgment of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a).
(1A) For the purposes of processing of returns under sub-section (1), the Board may make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to, the assessee as required under the said sub-section.
(1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued 18[19[after the 31st day of March, 2011]].
(1C) Every notification issued under sub-section (1B), along with the scheme made under sub-section (1A), shall, as soon as may be after the notification is issued, be laid before each House of Parliament.;
7[(2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1)
of section 142, the Assessing Officer shall,-
(i) where he has reason to believe that any claim of loss, exemption, deduction, allowance or relief made in the return is inadmissible, serve on the assessee a notice specifying particulars of such claim of loss, exemption, deduction, allowance or relief and require him, on a date to be specified therein to produce, or cause to be produced, any evidence or particulars specified therein or on which the assessee may rely, in support of such claim:
8[Provided that no notice under this clause shall be served on the assessee on or after the 1st day
of June, 2003;]
(ii) notwithstanding anything contained in clause (i), if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return:
Provided that no notice under 9[clause (ii)] shall be served on the assessee after the expiry of six months from the end of the month in which the return is furnished.]
10[(3) On the day specified in the notice,-
(i) issued under clause (i) of sub-section (2), or as soon afterwards as may be, after hearing such evidence and after taking into account such particulars as the assessee may produce, the Assessing Officer shall, by an order in writing, allow or reject the claim or claims specified in such notice and make an assessment determining the total income or loss accordingly, and determine the sum payable by the assessee on the basis of such assessment;
(ii) issued under clause (ii) of sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment:]
11[Provided that in the case of a-
(a) 20[research association] referred to in clause (21) of section 10;
(b) news agency referred to in clause (22B) of section 10;
(c) association or institution referred to in clause (23A) of section 10;
(d) institution referred to in clause (23B) of section 10;
(e) fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via) of clause (23C) of section 10,
which is required to furnish the return of income under sub-section (4C) of section 139, no order making an assessment of the total income or loss of such 20[research association], news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, shall be made by the Assessing Officer, without giving effect to the provisions of section 10, unless-
(i) the Assessing Officer has intimated the Central Government or the prescribed authority the contravention of the provisions of clause (21) or clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the case may be, by such 20[research association], news agency, association or institution or fund or trust or university or other educational institution or any hospital or other medical institution, where in his view such contravention has taken place; and
(ii) the approval granted to such 20[research association] or other association 16[or fund or trust] or institution or university or other educational institution or hospital or other medical institution has been withdrawn or notification issued in respect of such news agency or fund or trust or institution has been rescinded.]
15[Provided further that where the Assessing Officer is satisfied that the activities of the university, college or other institution referred to in clause (ii) and clause (iii) of sub-section (1) of section 35 are not being carried out in accordance with all or any of the conditions subject to which such university, college or other institution was approved, he may, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned university, college or other institution, recommend to the Central Government to withdraw the approval and that Government may by order, withdraw the approval and forward a copy of the order to the concerned university, college or other institution and the Assessing Officer.]
12[(4) Where a regular assessment under sub-section (3) of this section or section 144 is made,-
(a) any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment ;
(b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly.
(5) 13[Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]]
14[* * *]
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1. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Section 143, was earlier amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971, Finance Act, 1974, w.e.f. 1-4-1975, Finance Act, 1976, w.e.f. 1-4-1976, Finance (No. 2) Act, 1980, w.e.f. 1-4-1980 and Finance Act, 1987, w.e.f. 1-4-1988.
2. Substituted by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to its substitution, sub-section (1), as amended by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989, Finance Act, 1992, w.e.f. 1-4-1993 and Finance Act, 1997, w.e.f. 1-4-1998, read as under :
"(1)(a) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,-
(i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly ; and
(ii) if any refund is due on the basis of such return, it shall be granted to theassessee :
Provided that in computing the tax or interest payable by, or refundable to, the assessee, the following adjustments shall be made in the income or loss declared in the return, namely :-
(i) any arithmetical errors in the return, accounts or documents accompanying it shall be rectified ;
(ii) any loss carried forward, deduction, allowance or relief, which, on the basis of the information available in such return, accounts or documents, is prima facie admissible but which is not claimed in the return, shall be allowed ;
(iii) any loss carried forward, deduction, allowance or relief claimed in the return, which, on the basis of the information available in such return, accounts or documents, is prima facie inadmissible, shall be disallowed :
Provided further that an intimation shall be sent to the assessee whether or not any adjustment has been made under the first proviso and notwithstanding that no tax or interest is due from him :
Provided also that an intimation under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the income was first assessable.
(b) Where as a result of an order made under sub-section (3) of this section or section 144 or section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of section 245D relating to any earlier assessment year and passed subsequent to the filing of the return referred to in clause (a), there is any variation in the carry forward loss, deduction, allowance or relief claimed in the return, and as a result of which,-
(i) if any tax or interest is found due, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly, and
(ii) if any refund is due, it shall be granted to the assessee :
Provided that an intimation for any tax or interest due under this clause shall not be sent after the expiry of four years from the end of the financial year in which any such order was passed.
(c) Where the assessee is a member of an association of persons or body of individuals and as a result of the adjustments made under the first proviso to clause (a) of sub-section (1) in the income or loss declared in the return made by the association or body, as the case may be, or as a result of an order made under sub-section (3) of this section or section 144 or section 147 or section 154 or section 155 or sub-section (1) or sub-section (2) or sub-section (3) or sub-section (5) of section 185 or sub-section (1) or sub-section (2) of section 186 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of section 245D, passed subsequent to the filing of the return referred to in clause (a), there is any variation in his share in the income or loss of the association or body, as the case may be, or in the manner of inclusion of his share in the returned income, then,-
(i) if any tax or interest is found due, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly, and
(ii) if any refund is due, it shall be granted to the assessee :
Provided that an intimation for any tax or interest due under this clause shall not be sent after the expiry of four years from the end of the financial year in which any such adjustments were made or any such order was passed."
3. Substituted for "two years from the end of the assessment year in which the income was first assessable" by the Finance Act, 2001, w.e.f. 1-6-2001.
4. Third proviso inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
5. Prior to its omission, sub-section (1A), as inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, and later on amended by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989, the Finance Act, 1992, w.r.e.f. 1-4-1989 and the Finance Act, 1993, w.r.e.f. 1-4-1989, read as under :
"(1A) (a) Where as a result of the adjustments made under the first proviso to clause (a) of sub-section (1),-
(i) the income declared by any person in the return is increased ; or
(ii) the loss declared by such person in the return is reduced or is converted into income, the Assessing Officer shall,-
(A) in a case where the increase in income under sub-clause (i) of this clause has increased the total income of such person, further increase the amount of tax payable under sub-section (1) by an additional income-tax calculated at the rate of twenty per cent on the difference between the tax on the total income so increased and the tax that would have been chargeable had such total income been reduced by the amount of adjustments and specify the additional income-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ;
(B) in a case where the loss so declared is reduced under sub-clause (ii) of this clause or the aforesaid adjustments have the effect of converting that loss into income, calculate a sum (hereinafter referred to as additional income-tax) equal to twenty per cent of the tax that would have been chargeable on the amount of the adjustments as if it had been the total income of such person and specify the additional income-tax so calculated in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1) ;
(C) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional income-tax calculated under sub-clause (A) or sub-clause (B), as the case may be.
(b) Where as a result of an order under sub-section (3) of this section or section 154 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount on which additional income-tax is payable under clause (a) has been increased or reduced, as the case may be, the additional income-tax shall be increased or reduced accordingly, and,-
(i) in a case where the additional income-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 156 ;
(ii) in a case where the additional income-tax is reduced, the excess amount paid, if any, shall be refunded."
6. Prior to its omission, sub-section (1B), as inserted by the Finance Act, 1990, w.r.e.f.1-4-1989, read as under :
"(1B) Where an assessee furnishes a revised return under sub-section (5) of section 139 after the issue of an intimation, or the grant of refund, if any, under sub-section (1) of this section, the provisions of sub-sections (1) and (1A) of this section shall apply in relation to such revised return and-
(i) the intimation already sent for any income-tax, additional income-tax or interest shall be amended on the basis of the said revised return and where any amount payable by way of income-tax, additional income-tax or interest specified in the said intimation has already been paid by the assessee then, if any such amendment has the effect of-
(a) enhancing the amount already paid, the intimation amended under this clause shall be sent to the assessee specifying the excess amount payable by him and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly;
(b) reducing the amount already paid, the excess amount paid shall be refunded to the assessee ;
(ii) the amount of the refund already granted shall be enhanced or reduced on the basis of the said revised return and where the amount of refund already granted is-
(a) enhanced, only the excess amount of refund due to the assessee shall be paid to him ;
(b) reduced, the excess amount so refunded shall be deemed to be the tax payable by the assessee and an intimation shall be sent to the assessee specifying the amount so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly :
Provided that an assessee, who has furnished a revised return under sub-section (5) of section 139 after the service upon him of the intimation under sub-section (1) of this section, shall be liable to pay additional income-tax in relation to the adjustments made under the first proviso to clause (a) of sub-section (1) and specified in the said intimation, whether or not he has made the said adjustments in the revised return."
7. Substituted by the Finance Act, 2002, w.e.f. 1-6-2002. Prior to its substitution, sub-section (2), as amended by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989 and the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991, read as under:
"(2) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer shall, if he considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, serve on the assessee a notice requiring him, on a date to be specified therein, either to attend his office or to produce, or cause to be produced there, any evidence on which the assessee may rely in support of the return :
Provided that no notice under this sub-section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished."
8. Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
9. Substituted for "this sub-section" by the Finance Act, 2003, w.e.f. 1-6-2003
10. Substituted by the Finance Act, 2002, w.e.f. 1-6-2002. Prior to its substitution, sub-section (3), as inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998, read as under:
"(3) On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence as the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into account all relevant material which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the total income or loss of the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment."
11. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.
12. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989.
13. Prior to its omission, sub-section (5), as inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989, read as under :
"(5) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year."
14. Omitted by the Finance Act, 1999, w.e.f. 1-6-1999. Prior to its omission, Explanation, as inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991 and later on amended by the Finance Act, 1994, w.e.f. 1-6-1994, read as under :
"Explanation.-An intimation sent to the assessee under sub-section (1) or sub-section (1B) shall be deemed to be an order for the purposes of sections 246 and 264."
15. Inserted by the Taxation Laws (Amendment) Act, 2006, w.e.f. 1-4-2006.
16. Shall be inserted by the Finance Act, 2007, w.e.f. 01.06.2007.
17. Substituted by the Finance Act, 2008 for the following :-
"2[(1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142,-
(i) if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2)3 , an intimation shall
be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and3 , an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and
(ii) if any refund is due on the basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee :
Provided that except as otherwise provided in this sub-section, the acknowledgement of the return shall be deemed to be an intimation under this sub-section where either no sum is payable by the assessee or no refund is due to him :
Provided further that no intimation under this sub-section shall be sent after the expiry of 3[one year from the end of the financial year in which the return is made :]
4[Provided also that where the return made is in respect of the income first assessable in the
assessment year commencing on the 1st day of April, 1999, such intimation may be sent at any time up to the 31st day of March, 2002.]
(1A) 5[Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]
(1B) 6[Omitted by the Finance Act, 1999, w.e.f. 1-6-1999.]"
18. Substituted by the Finance (No. 2) Act, 2009 for the following : -"after the 31st day of March, 2009".
19. Substituted by the Finance Act, 2010 for the following : "after the 31st day of March, 2010".
20. Substituted by the Finance Act, 2010 w.e.f. 01.04.2011 for the following :"scientific research association"
(1) If any person -
(a) fails to make the return required under sub-section (1) of section 139 and has not made a return or a revised return under sub-section (4) or sub-section (5) of that section, or
(b) fails to comply with all the terms of a notice issued under sub-section (1) of section 142 or fails to comply with a direction issued under sub-section (2A) of that section, or
(c) having made a return, fails to comply with all the terms of a notice issued under sub-section (2) of section 143,
the Assessing Officer, after taking into account all relevant material which the Assessing Officer has gathered, shall, after giving the assessee an opportunity of being heard, make the assessment of the total income or loss to the best of his judgment and determine the sum payable by the assessee on the basis of such assessment :
Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the assessment should not be completed to the best of his judgement :
Provided further that it shall not be necessary to give such opportunity in a case where a notice under sub-section (1) of section 142 has been issued prior to the making of an assessment under this section.
(2) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year.
A 1[Joint Commissioner] may, on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment and such directions shall be binding on the Assessing Officer :
Provided that no directions which are prejudicial to the assessee shall be issued before an opportunity is given to the assessee to be heard.
Explanation : For the purposes of this section, no direction as to the lines on which an investigation connected with the assessment should be made, shall be deemed to be a direction prejudicial to the assessee.
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1. Substituted for Deputy Commissioner by the Finance (No. 2) Act, 1998, with effect from 1st October, 1998.
1[***]
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1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989.
1[(1) The Assessing Officer shall, notwithstanding anything to the contrary contained in this Act, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the eligible assessee if he proposes to make, on or after the 1st day of October, 2009, any variation in the income or loss returned which is prejudicial to the interest of such assessee.
(2) On receipt of the draft order, the eligible assessee shall, within thirty days of the receipt by him of the draft order,--
(a) file his acceptance of the variations to the Assessing Officer; or
(b) file his objections, if any, to such variation with,--
(i) the Dispute Resolution Panel; and
(ii) the Assessing Officer.
(3) The Assessing Officer shall complete the assessment on the basis of the draft order, if--
(a) the assessee intimates to the Assessing Officer the acceptance of the variation; or
(b) no objections are received within the period specified in sub-section (2).
(4) The Assessing Officer shall, notwithstanding anything contained in section 153, pass the assessment order under sub-section (3) within one month from the end of the month in which,--
(a) the acceptance is received; or
(b) the period of filing of objections under sub-section (2) expires.
(5) The Dispute Resolution Panel shall, in a case where any objection is received under sub-section (2), issue such directions, as it thinks fit, for the guidance of the Assessing Officer to enable him to complete the assessment.
(6) The Dispute Resolution Panel shall issue the directions referred to in sub-section (5), after considering the following, namely:--
(a) draft order;
(b) objections filed by the assessee;
(c) evidence furnished by the assessee;
(d) report, if any, of the Assessing Officer, Valuation Officer or Transfer Pricing Officer or any other authority;
(e) records relating to the draft order;
(f) evidence collected by, or caused to be collected by, it; and
(g) result of any enquiry made by, or caused to be made by, it.
(7) The Dispute Resolution Panel may, before issuing any directions referred to in sub-section (5),--
(a) make such further enquiry, as it thinks fit; or
(b) cause any further enquiry to be made by any income-tax authority and report the result of the same to it.
(8) The Dispute Resolution Panel may confirm, reduce or enhance the variations proposed in the draft order so, however, that it shall not set aside any proposed variation or issue any direction under sub-section (5) for further enquiry and passing of the assessment order.
(9) If the members of the Dispute Resolution Panel differ in opinion on any point, the point shall be decided according to the opinion of the majority of the members.
(10) Every direction issued by the Dispute Resolution Panel shall be binding on the Assessing Officer.
(11) No direction under sub-section (5) shall be issued unless an opportunity of being heard is given to the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue, respectively.
(12) No direction under sub-section (5) shall be issued after nine months from the end of the month in which the draft order is forwarded to the eligible assessee.
(13) Upon receipt of the directions issued under sub-section (5), the Assessing Officer shall, in conformity with the directions, complete, notwithstanding anything to the contrary contained in section 153, the assessment without providing any further opportunity of being heard to the assessee, within one month from the end of the month in which such direction is received.
(14) The Board may make rules for the purposes of the efficient functioning of the Dispute Resolution Panel and expeditious disposal of the objections filed under sub-section (2) by the eligible assessee.
(15) For the purposes of this section,--
(a) "Dispute Resolution Panel" means a collegium comprising of three Commissioners of Income-tax constituted by the Board for this purpose;
(b) "eligible assessee" means,--
(i) any person in whose case the variation referred to in sub-section (1) arises as a consequence of the order of the Transfer Pricing Officer passed under sub-section (3) of section 92CA; and
(ii) any foreign company.]
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1. Inserted by the Finance (No. 2) Act, 2009.
(1) Income chargeable under the head Profits and gains of business or profession or Income from other sources shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.
(2) The Central Government may notify in the Official Gazette from time to time accounting standards to be followed by any class of assessees or in respect of any class of income.
(3) Where the Assessing Officer is not satisfied about the correctness or completeness of the accounts of the assessee, or where the method of accounting provided in sub-section (1) or accounting standards as notified under sub-section (2), have not been regularly followed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144.
1[Notwithstanding anything to the contrary contained in section 145,--
(a) the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be-
(i) in accordance with the method of accounting regularly employed by the assessee; and
(ii) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation.
Explanation.--For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment.
(b) interest received by an assessee on compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received.]
________________________
1. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1st April, 2010 for the following : -
"145A. 2[Method of accounting in certain cases.-
Notwithstanding anything to the contrary contained in section 145, the valuation of purchase and sale of goods and inventory for the purposes of determining the income chargeable under the head "Profits and gains of business or profession" shall be-
(a) in accordance with the method of accounting regularly employed by the assessee; and
(b) further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or incurred by the assessee to bring the goods to the place of its location and condition as on the date of valuation.
Explanation.- For the purposes of this section, any tax, duty, cess or fee (by whatever name called) under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment.]"
1[***]
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1. Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989.
If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) :
Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year.
1[Provided further that the Assessing Officer may assess or reassess such income, other than the income involving matters which are the subject matter of any appeal, reference or revision, which is chargeable to tax and has escaped assessment.]
Explanation 1 : Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso.
Explanation 2 : For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :
(a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax ;
(b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ;
(c) where an assessment has been made, but
(i) income chargeable to tax has been under-assessed ; or
(ii) such income has been assessed at too low a rate ; or
(iii) such income has been made the subject of excessive relief under this Act ; or
(iv) excessive loss or depreciation allowance or any other allowance under this Act has been computed.
2[Explanation 3.--For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148.]
________________________________
1. Inserted by the Finance Act, 2008, with effect from 1st April, 2008.
2. Inserted by the Finance (No. 2) Act, 2009, with effect from 1st April, 2009.
(1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period as may be specified in the notice, a return of his income or the income of any other person in respect of which he is assessable under this Act during the previous year corresponding to the relevant assessment year, in the prescribed1 form and verified in the prescribed1 manner and setting forth such other particulars as may be prescribed1; and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139.
2[Provided that in a case --
(a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005 in response to a notice served under this section, and
(b) subsequently a notice has been served under sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to subsection (2) of section 143, as it stood immediately before the amendment of said sub-section by the Finance Act, 2002 (20 of 2002) but before the expiry of the time limit for making the assessment, reassessment or re-computation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice:
Provided further that in a case--
(a) where a return has been furnished during the period commencing on the 1st day of October, 1991 and ending on the 30th day of September, 2005, in response to a notice served under this section, and
(b) subsequently a notice has been served under clause (ii) of sub-section (2) of section 143 after the expiry of twelve months specified in the proviso to clause (ii) of sub-section (2) of section 143, but before the expiry of the time limit for making the assessment, re-assessment or re-computation as specified in sub-section (2) of section 153, every such notice referred to in this clause shall be deemed to be a valid notice.]
3[Explanation : For the removal of doubts, it is hereby declared that nothing contained in the first proviso or the second proviso shall apply to any return which has been furnished on or after the 1st day of October, 2005 in response to a notice served under this section.]
(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.
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1. See rule 12.
2. Inserted by the Finance Act, 2006, with retrospective effect from 1st October, 1991.
3. Inserted by the Finance Act, 2006, with retrospective effect from 1st October, 2005.
(1) No notice under section 148 shall be issued for the relevant assessment year, -
1[(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) ;]
2[(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.]
Explanation : In determining income chargeable to tax which has escaped assessment for the purposes of this sub-section, the provisions of Explanation 2 of section 147 shall apply as they apply for the purposes of that section.
(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.
(3) If the person on whom a notice under section 148 is to be served is a person treated as the agent of a non-resident under section 163 and the assessment, reassessment or recomputation to be made in pursuance of the notice is to be made on him as the agent of such non-resident, the notice shall not be issued after the expiry of a period of two years from the end of the relevant assessment year.
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1. Substituted by the Finance Act, 2001, with effect from 1st June, 2001. Prior to substitution, clause (a) stood as under :
(a) in a case where an assessment under sub-section (3) of section 143 or section 147 has been made for such assessment year, -
(i) if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub-clause (ii) or sub-clause (iii) ;
(ii) if four years, but not more than seven years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year ;
(iii) if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees one lakh or more for that year ;
2. Substituted by the Finance Act, 2001, with effect from 1st June, 2001. Prior to substitution, clause (b) stood as under :
(b) in any other case, -
(i) if four years have elapsed from the end of the relevant assessment year, unless the case falls under sub-clause (ii) or sub-clause (iii) ;
(ii) if four years, but not more than seven years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees twenty-five thousand or more for that year ;
(iii) if seven years, but not more than ten years, have elapsed from the end of the relevant assessment year, unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees fifty thousand or more for that year.
(1) Notwithstanding anything contained in section 149, the notice under section 148 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of or to give effect to any finding or direction contained in an order passed by any authority in any proceeding under this Act by way of appeal, reference or revision or by a Court in any proceeding under any other law.
(2) The provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to an assessment year in respect of which an assessment, reassessment or recomputation could not have been made at the time the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made by reason of any other provision limiting the time within which any action for assessment, reassessment or recomputation may be taken.
(1) In case where an assessment under sub-section (3) of section 143 or section 147 has been made for the relevant assessment year, no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of 1[Assistant Commissioner or Deputy Commissioner], unless the 2[Joint Commissioner] is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice :
Provided that, after the expiry of four years from the end of the relevant assessment year, no such notice shall be issued unless the Chief Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer aforesaid, that it is a fit case for the issue of such notice.
(2) In a case other than a case falling under sub-section (1), no notice shall be issued under section 148 by an Assessing Officer, who is below the rank of 2[Joint Commissioner], after the expiry of four years from the end of the relevant assessment year, unless the 2[Joint Commissioner] is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice.
3[Explanation: For the removal of doubts, it is hereby declared that the Joint Commissioner, the Commissioner or the Chief Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice under section 148, need not issue such notice himself.]
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1. Substituted for Assistant Commissioner by the Finance (No. 2) Act, 1998 with effect from 1st October, 1998.
2. Substituted for Deputy Commissioner by the Finance (No. 2) Act, 1998 with effect from 1st October, 1998.
3. Inserted by the Finance Act, 2008, with retrospective effect from 1st October, 1998.
(1) In an assessment, reassessment or recomputation made under section 147, the tax shall be chargeable at the rate or rates at which it would have been charged had the income not escaped assessment.
(2) Where an assessment is reopened under section 147, the assessee may, if he has not impugned any part of the original assessment order for that year either under sections 246 to 248 or under section 264, claim that the proceedings under section 147 shall be dropped on his showing that he had been assessed on an amount or to a sum not lower than what he would be rightly liable for even if the income alleged to have escaped assessment had been taken into account, or the assessment or computation had been properly made :
Provided that in so doing he shall not be entitled to reopen matters concluded by an order under section 154, 155, 260, 262 or 263.
(1) No order of assessment shall be made under section 143 or section 144 at any time after the expiry of
(a) two years from the end of the assessment year in which the income was first assessable ; or
(b) one year from the end of the financial year in which a return or a revised return relating to the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year, is filed under sub-section (4) or sub-section (5) of section 139,
whichever is later :
1[Provided that in case the assessment year in which the income was first assessable is the assessment year commencing on the 1st day of April, 2004 or any subsequent assessment year, the provisions of clause (a) shall have effect as if for the words two years, the words twenty-one months had been substituted:]
2[Provided further that in case the assessment year in which the income was first assessable is the assessment year commencing on the 1st day of April, 2005 or any subsequent assessment year and during the course of the proceeding for the assessment of total income, a reference under sub-section (1) of section 92CA
(i) was made before the 1st day of June, 2007 but an order under subsection (3) of that section has not been made before such date; or
(ii) is made on or after the 1st day of June, 2007,
the provisions of clause (a) shall, notwithstanding anything contained in the first proviso, have effect as if for the words two years, the words thirty-three months had been substituted.]
3[(1A) No order of assessment shall be made under section 115WE or section 115WF at any time after the expiry of 4[twenty-one months] from the end of the assessment year in which the fringe benefits were first assessable.]
3[(1B) No order of assessment or reassessment shall be made under section 115WG after the expiry of 5[nine months] from the end of the financial year in which the notice under section 115WH was served.]
(2) No order of assessment, reassessment or recomputation shall be made under section 147 after the expiry of 6[one year] from the end of the financial year in which the notice under section 148 was served :
7[Provided that where the notice under section 148 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment, reassessment or recomputation may be made at any time up to the 31st day of March, 2002:]
1[Provided further that where the notice under section 148 was served on or after the 1st day of April, 2005, the provisions of this sub-section shall have effect as if for the words one year, the words nine months had been substituted:]
2[Provided also that where the notice under section 148 was served on or after the 1st day of April, 2006 and during the course of the proceedings for the assessment or reassessment or recomputation of total income, a reference under sub-section (1) of section 92CA -
(i) was made before the 1st day of June, 2007 but an order under subsection (3) of that section has not been made before such date; or
(ii) is made on or after the 1st day of June, 2007,
the provisions of this sub-section shall, notwithstanding anything contained in the second proviso, have effect as if for the words one year, the words twenty-one months had been substituted.]
8[(2A) Notwithstanding anything contained in 9[sub-sections (1), (1A), (1B) and (2)], in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment in pursuance of an order under section 250, section 254, section 263 or section 264, setting aside or cancelling an assessment, may be made at any time before the expiry of one year from the end of the financial year in which the order under section 250 or section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Chief Commissioner or Commissioner :
Provided that where the order under section 250 or section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Chief Commissioner or Commissioner, on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such an order of fresh assessment may be made at any time up to the 31st day of March, 2002:]
1[Provided further that where the order under section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Commissioner on or after the 1st day of April, 2005, the provisions of this sub-section shall have effect as if for the words one year, the words nine months had been substituted:]
2[Provided also that where the order under section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Commissioner on or after the 1st day of April, 2006, and during the course of the proceedings for the fresh assessment of total income, a reference under sub-section (1) of section 92CA
(i) was made before the 1st day of June, 2007 but an order under subsection (3) of section 92CA has not been made before such date; or
(ii) is made on or after the 1st day of June, 2007,
the provisions of this sub-section shall, notwithstanding anything contained in the second proviso, have effect as if for the words one year, the words twenty-one months had been substituted.]
(3) The provisions of 9[sub-sections (1), (1A), (1B) and (2)] shall not apply to the following classes of assessments, reassessments and recomputations which may, subject to the provisions of sub-section (2A) be completed at any time
(i) 10[***] ;
(ii) where the assessment, reassessment or recomputation is made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, 254, 260, 262, 263 or 264 or in an order of any court in a proceeding otherwise than by way of appeal or reference under this Act ;
(iii) where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147.
11[(4) Notwithstanding anything contained in the foregoing provisions of this section, sub-section (2) of section 153A and sub-section (1) of section 153B, the order of assessment or reassessment, relating to any assessment year, which stands revived under sub-section (2) of section 153A, shall be made within one year from the end of the month of such revival or within the period specified in this section or sub-section (1) of section 153B, whichever is later.]
Explanation 1 : In computing the period of limitation for the purposes of this section
(i) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be re-heard under the proviso to section 129, or
(ii) the period during which the assessment proceeding is stayed by an order or injunction of any court, or
12[(iia) the period commencing from the date on which the Assessing Officer intimates the Central Government or the prescribed authority, the contravention of the provisions of clause (21) or clause (22B) or clause (23A) or clause (23B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, under clause (i) of the proviso to sub-section (3) of section 143 and ending with the date on which the copy of the order withdrawing the approval or rescinding the notification, as the case may be, under those clauses is received by the Assessing Officer ;]
(iii) the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending with the last date on which the assessee is required to furnish a report of such audit under that sub-section, or
(iv) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989] ;
(iva) the period (not exceeding sixty days) commencing from the date on which the Assessing Officer received the declaration under sub-section (1) of section 158A and ending with the date on which the order under sub-section (3) of that section is made by him, or
(v) in case where an application made before the Income-tax Settlement Commission under section 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such application is made and ending with the date on which the order under sub-section (1) of section 245D is received by the Commissioner under sub-section (2) of 13[that section, or]
14[(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or]
14[(vii) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the advance ruling pronounced by it is received by the Commissioner under sub-section (7) of section 245R,]
shall be excluded :
Provided that where immediately after the exclusion of the aforesaid time or period, the period of limitation referred to 15[in sub-sections (1), (1A), (1B), 16[(2), (2A) and (4)] available to the Assessing Officer for making an order of assessment, reassessment or recomputation, 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.
17[Provided further that where a proceeding before the Settlement Commission abates under section 245HA, the period of limitation available under this section to the Assessing Officer for making an order of assessment, reassessment or re-computation, as the case may be, shall, after the exclusion of the period under sub-section (4) of section 245HA, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year; and for the purposes of determining the period of limitation under sections 149, 153B, 154, 155, 158BE and 231 and for the purposes of payment of interest under section 243 or section 244 or, as the case may be, section 244A, this proviso shall also apply accordingly.]
Explanation 2 : Where, by an order referred to in clause (ii) of sub-section (3), any income is excluded from the total income of the assessee for an assessment year, then, an assessment of such income for another assessment year shall, for the purposes of section 150 and 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.
Explanation 3 : Where, by an order referred to in clause (ii) of sub-section (3) any income is excluded from the total income of one person and held to be the income of another person, then, an assessment of such income on such other person shall, for the purposes of section 150 and 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, provided such other person was given an opportunity of being heard before the said order was passed.
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1. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
2. Inserted by the Finance Act, 2007, with effect from 1st June, 2007.
3. Inserted by the Finance Act, 2005, with effect from 1st April, 2006.
4. Substituted for two years by the Finance Act, 2006, with effect from 1st June, 2006.
5. Substituted for one year by the Finance Act, 2006, with effect from 1st June, 2006.
6. Substituted for two years by the Finance Act, 2001, with effect from 1st June, 2001.
7. Substituted by the Finance Act, 2001, with effect from 1st June, 2001. Prior to substitution, the proviso stood as under :
Provided that where the notice under section 148 was served on or before the 31st day of March, 1987, such assessment, reassessment or recomputation may be made at any time up to the 31st day of March, 1990.
8. Substituted by the Finance Act, 2001, with effect from 1st June, 2001. Prior to substitution, sub-section (2A) stood as under :
(2A) Notwithstanding anything contained in sub-sections (1) and (2), in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment under section 146 or in pursuance of an order, under section 250, section 254, section 263 or section 264, setting aside or cancelling an assessment, may be made at any time before the expiry of two years from the end of the financial year in which the order under section 146 cancelling the assessment is passed by the Assessing Officer or the order under section 250 or section 254 is received by the Chief Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Chief Commissioner or Commissioner.
9. Substituted sub-sections (1) and (2) by the Finance Act, 2005, with effect from 1st April, 2006.
10. Omitted by the Finance Act, 2001, with effect from 1st June, 2001. Prior to omission, clause (i) stood as under :
(i) where a fresh assessment is made under section 146 ;
11. Inserted by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
12. Inserted by the Finance Act, 2002, with effect from 1st April, 2003.
13. Substituted for that section by the Finance (No. 2) Act, 2004, with effect from 1st October, 2004.
14. Inserted by the Finance (No. 2) Act, 2004, with effect from 1st October, 2004.
15. Substituted for in sub-sections (1), (2) and (2A) by the Finance Act, 2005, with effect from 1st April, 2006.
16. Substituted for "(2) and (2A)" by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
17. Inserted by the Finance Act, 2008, with retrospective effect from 1st June, 2007.
1[2[1] Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, the Assessing Officer shall -
(a) issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each assessment year falling within six assessment years referred to in clause (b), in the prescribed3 form and verified in the prescribed3 manner and setting forth such other particulars as may be prescribed3 and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139 ;
(b) assess or reassess the total income of six assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made :
Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years:
Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years 4[referred to in this subsection] pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate.
5[(2) If any proceeding initiated or any order of assessment or reassessment made under sub-section (1) has been annulled in appeal or any other legal proceeding, then, notwithstanding anything contained in sub-section (1) or section 153, the assessment or reassessment relating to any assessment year which has abated under the second proviso to sub-section (1), shall stand revived with effect from the date of receipt of the order of such annulment by the Commissioner:
Provided that such revival shall cease to have effect, if such order of annulment is set aside.]
Explanation : For the removal of doubts, it is hereby declared that,-
(i) save as otherwise provided in this section, section 153B and section 153C, all other provisions of this Act shall apply to the assessment made under this section ;
(ii) in an assessment or reassessment made in respect of an assessment year under this section, the tax shall be chargeable at the rate or rates as applicable to such assessment year.]
________________________________
1. Inserted by the Finance Act, 2003, with effect from 1st June, 2003.
2. Numbered by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
3. See rule 12.
4. Substituted for referred to in this section" by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
5. Inserted by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
1[(1) Notwithstanding anything contained in section 153, the Assessing Officer shall make an order of assessment or reassessment,-
(a) in respect of each assessment year falling within six assessment years referred to in clause (b) of 2[sub-section (1) of section 153A], within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed;
(b) in respect of the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A, within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed :
3[Provided that in case of other person referred to in section 153C, the period of limitation for making the assessment or reassessment shall be the period as referred to in clause (a) or clause (b) of this sub-section or one year from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later:]
4[Provided further that in the case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on the 1st day of April, 2004 or any subsequent financial year,
(i) the provisions of clause (a) or clause (b) of this sub-section shall have effect as if for the words two years the words twenty-one months had been substituted;
(ii) the period of limitation for making the assessment or re-assessment in case of other person referred to in section 153C, shall be the period of twenty-one months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed or nine months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later.]
5[Provided also that in case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on the 1st day of April, 2005 or any subsequent financial year and during the course of the proceedings for the assessment or reassessment of total income, a reference under sub-section (1) of section 92CA -
(i) was made before the 1st day of June, 2007 but an order under subsection (3) of section 92CA has not been made before such date; or
(ii) is made on or after the 1st day of June, 2007,
the provisions of clause (a) or clause (b) of this sub-section shall, notwithstanding anything contained in clause (i) of the second proviso, have effect as if for the words two years, the words thirty three months had been substituted:
Provided also that in case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on the 1st day of April, 2005 or any subsequent financial year and during the course of the proceedings for the assessment or reassessment of total income in case of other person referred to in section 153C, a reference under sub-section (1) of section 92CA -
(i) was made before the 1st day of June, 2007 but an order under subsection (3) of section 92CA has not been made before such date; or
(ii) is made on or after the 1st day of June, 2007,
the period of limitation for making the assessment or reassessment in case of such other person shall, notwithstanding anything contained in clause (ii) of the second proviso, be the period of thirty-three months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed or twenty-one months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later.]
Explanation : In computing the period of limitation for the purposes of this section,
(i) the period during which the assessment proceeding is stayed by an order or injunction of any court; or
(ii) the period commencing from the day on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section; or
(iii) the time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee of being re-heard under the proviso to section 129; or
(iv) in a case where an application made before the Settlement Commission under section 245C is rejected by it or is not allowed to be proceeded with by it, the period commencing from the date on which such application is made and ending with the date on which the order under sub-section (1) of section 245D is received by the Commissioner under sub-section (2) of 6[that section, or]
7[(v) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or]
7[(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the advance ruling pronounced by it is received by the Commissioner under sub-section (7) of section 245R,]
8[(vii) the period commencing from the date of annulment of a proceeding or order of assessment or reassessment referred to in sub-section (2) of section 153A till the date of the receipt of the order setting aside the order of such annulment, by the Commissioner,]
shall be excluded :
Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in 9[clause (a) or clause (b) of this sub-section] 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.
(2) The authorisation referred to in clause (a) and clause (b) of sub-section (1) shall be deemed to have been executed,
(a) in the case of search, on the conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued;
(b) in the case of requisition under section 132A, on the actual receipt of the books of account or other documents or assets by the Authorised Officer.]
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1. Inserted by the Finance Act, 2003, with effect from 1st June, 2003.
2. Substituted for section 153A by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
3. Inserted by the Finance Act, 2005, with retrospective effect from 1st June, 2003.
4. Inserted by the Finance Act, 2006, with effect from 1st June, 2006.
5. Inserted by the Finance Act, 2007, with effect from 1st June, 2007.
6. Substituted for that section by the Finance (No. 2) Act, 2004, with effect from 1st October, 2004.
7. Inserted by the Finance (No. 2) Act, 2004, with effect from 1st October, 2004.
8. Inserted by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
9. Substituted for clause (a) or clause (b) of this section by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
1[2[1] Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person other than the person referred to in section 153A, then the books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A :]
3[Provided that in case of such other person, the reference to the date of initiation of the search under section 132 or making of requisition under section 132A in the second proviso to 4[sub-section (1) of section 153A] shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person.]
3[(2) Where books of account or documents or assets seized or requisitioned as referred to in sub-section (1) has or have been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of such assessment year
(a) no return of income has been furnished by such other person and no notice under sub-section (1) of section 142 has been issued to him, or
(b) a return of income has been furnished by such other person but no notice under sub-section (2) of section 143 has been served and limitation of serving the notice under sub-section (2) of section 143 has expired, or
(c) assessment or reassessment, if any, has been made,
before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A.]
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1. Inserted by the Finance Act, 2003, with effect from 1st June, 2003.
2. Numbered by the Finance Act, 2005, with retrospective effect from 1st June, 2003.
3. Inserted by the Finance Act, 2005, with retrospective effect from 1st June, 2003.
4. Substituted for section 153A by the Finance Act, 2008, with retrospective effect from 1st June, 2003.
1[No order of assessment or reassessment shall be passed by an Assessing Officer below the rank of Joint Commissioner in respect of each assessment year referred to in clause (b) of 2[sub-section (1) of section 153A] or the assessment year referred to in clause (b) of sub-section (1) of section 153B, except with the prior approval of the Joint Commissioner.]
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1. Inserted by the Finance Act, 2007, with effect from 1st June, 2007.
2. Substituted for section 153A" by the Finance Act, 2008, with retrospective effect from 1st June, 2007.
(1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may,
(a) amend any order passed by it under the provisions of this Act ;
1[(b) amend any intimation or deemed intimation under sub-section (1) of section 143].
(1A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(2) Subject to the other provisions of this section, the authority concerned
(a) may make an amendment under sub-section (1) of its own motion, and
(b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee, and where the authority concerned is the 2[***] Commissioner (Appeals), by the Assessing Officer also.
[Proviso omitted by the Finance Act, 1994, with effect from 1st June, 1994.]
(3) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the authority concerned has given notice to the assessee of its intention so to do and has allowed the assessee a reasonable opportunity of being heard.
(4) Where an amendment is made under this section, an order shall be passed in writing by the income-tax authority concerned.
(5) Subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the Assessing Officer shall make any refund which may be due to such assessee.
(6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly.
(7) Save as otherwise provided in section 155 or sub-section (4) of section 186 no amendment under this section shall be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed.
3[(8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee on or after the 1st day of June, 2001 to an income-tax authority referred to in sub-section (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it, -
(a) making the amendment ; or
(b) refusing to allow the claim.]
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1. Substituted by the Finance Act, 1999, with effect from 1st June, 1999. Prior to substitution, clause (b) stood as under :
(b) amend any intimation sent by it under sub-section (1) of section 143, or enhance or reduce the amount of refund granted by it under that sub-section.
2. The expression Deputy Commissioner (Appeals) or the omitted by the Finance (No. 2) Act, 1998, with effect from 1st October, 1998.
3. Inserted by the Finance Act, 2001, with effect from 1st June, 2001.
(1) Where, in respect of any completed assessment of a partner in a firm for the assessment year commencing on the 1st day of April, 1992, or any earlier assessment year, it is found -
(a) on the assessment or reassessment of the firm, or
(b) on any reduction or enhancement made in the income of the firm under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, or
(c) on any order passed under sub-section (4) of section 245D on the application made by the firm,
that the share of the partner in the income of the firm has not been included in the assessment of the partner or, if included, is not correct, the Assessing Officer may amend the order of assessment of the partner with a view to the inclusion of the share in the assessment or the correction thereof, as the case may be ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the firm.
(1A) Where in respect of any completed assessment of a firm it is found
(a) on the assessment or reassessment of the firm, or
(b) on any reduction or enhancement made in the income of the firm under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, or
(c) on any order passed under sub-section (4) of section 245D on the application made by the firm,
that any remuneration to any partner is not deductible under clause (b) of section 40, the Assessing Officer may amend the order of assessment of the partner with a view to adjusting the income of the partner to the extent of the amount not so deductible ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the firm.
(2) Where in respect of any completed assessment of a member of an association of persons or of a body of individuals it is found
(a) on the assessment or reassessment of the association or body, or
(b) on any reduction or enhancement made in the income of the association or body under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, or
(c) on any order passed under sub-section (4) of section 245D on the application made by the association or body,
that the share of the member in the income of the association or body, as the case may be, has not been included in the assessment of the member or, if included, is not correct, the Assessing Officer may amend the order of assessment of the member with a view to the inclusion of the share in the assessment or the correction thereof, as the case may be ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the association or body, as the case may be.
(3) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1989.]
(4) Where as a result of proceedings initiated under section 147, a loss or depreciation has been recomputed and in consequence thereof it is necessary to recompute the total income of the assessee for the succeeding year or years to which the loss or depreciation allowance has been carried forward and set-off under the provisions of sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section (1) or sub-section (3) of section 74, or subsection (3) of section 74A, the Assessing Officer may proceed to recompute the total income in respect of such year or years and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the order was passed under section 147.
(4A) Where an allowance by way of investment allowance has been made wholly or partly to an assessee in respect of a ship or an aircraft or any machinery or plant in any assessment year under section 32A and subsequently
(a) at any time before the expiry of eight years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the ship, aircraft, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (6) or sub-section (7) of section 32A ; or
(b) at any time before the expiry of ten years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the assessee does not utilise the amount credited to the reserve account under sub-section (4) of section 32A for the purposes of acquiring a new ship or a new aircraft or new machinery or plant (other than machinery or plant of the nature referred to in clauses (a), (b) and (d) of the second proviso to sub-section (1) of section 32A) for the purposes of the business of the undertaking ; or
(c) at any time before the expiry of the ten years referred to in clause (b), the assessee utilises the amount credited to the reserve account under sub-section (4) of section 32A
(i) for distribution by way of dividends or profits ; or
(ii) for remittance outside India as profits or for the creation of any asset outside India ; or
(iii) for any other purpose which is not a purpose of the business of the undertaking,
the investment allowance originally allowed shall be deemed to have been wrongly allowed, and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned,
(i) in a case referred to in clause (a), from the end of the previous year in which the sale or other transfer took place ;
(ii) in a case referred to in clause (a), from the end of the ten years referred to in that clause ;
(iii) in a case referred to in clause (c), from the end of the previous year in which the amount was utilised.
Explanation : For the purposes of clause (b), new ship or new aircraft or new machinery or plant shall have the same meanings as in the Explanation below sub-section (2) of section 32A.
(5) Where an allowance by way of development rebate has been made wholly or partly to an assessee in respect of a ship, machinery or plant installed after the 31st day of December, 1957, in any assessment year under section 33 or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of 1922), and subsequently
(i) at any time before the expiry of eight years from the end of the previous year in which the ship was acquired or the machinery or plant was installed, the ship, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (3) or subsection (4) of section 33 ; or
(ii) at any time before the expiry of the eight years referred to in subsection (3) of section 34, the assessee utilises the amount credited to the reserve account under clause (a) of that sub-section
(a) for distribution by way of dividends or profits ; or
(b) for remittance outside India as profits or for the creation of any asset outside India ; or
(c) for any other purpose which is not a purpose of the business of the undertaking,
the development rebate originally allowed shall be deemed to have been wrongly allowed, and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the sale or transfer took place or the money was so utilised.
(5A) Where an allowance by way of development allowance has been made wholly or partly to an assessee in respect of the cost of planting in any area in any assessment year under section 33A and subsequently
(i) at any time before the expiry of eight years from the end of the previous year in which such allowance was made, the land is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (5) or subsection (6) of section 33A ; or
(ii) at any time before the expiry of the eight years referred to in subsection (3) of section 33A, the assessee utilises the amount credited to the reserve account under clause (ii) of that sub-section
(a) for distribution by way of dividends or profits ; or
(b) for remittance outside India as profits or for the creation of any asset outside India ; or
(c) for any other purpose which is not a purpose of the business of the undertaking,
the development allowance originally allowed shall be deemed to have been wrongly allowed, and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the sale or transfer took place or the money was so utilised.
Explanation : For the purposes of this sub-section, where an assessee having any leasehold or other right of occupancy in any land transfers such right, he shall be deemed to have sold or otherwise transferred such land.
(5B) Where any deduction in respect of any expenditure on scientific research has been made in any assessment year under sub-section (2B) of section 35 and the assessee fails to furnish a certificate of completion of the programme obtained from the prescribed authority within one year of the period allowed for its completion by such authority, the deduction originally made in excess of the expenditure actually incurred shall be deemed to have been wrongly made, and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in subsection (7) of that section being reckoned from the end of the previous year in which the period allowed for the completion of the programme by the prescribed authority expired.
(6) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1992.]
(7) Where as a result of any proceeding under this Act, in the assessment for any year of a company in whose case an order under section 104 has been made for that year, it is necessary to recompute the distributable income of that company, the Assessing Officer may proceed to recompute the distributable income and determine the tax payable on the basis of such recomputation and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the company in respect of that proceeding.
(7A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1992.]
(7B) Where in the assessment for any year, the capital gain arising from the transfer of a capital asset is not charged under section 45 by virtue of the provisions of clause (iv) or, as the case may be, clause (v) of section 47, but is deemed under section 47A to be income chargeable under the head Capital gains of the previous year in which the transfer took place by reason of
(i) such capital asset being converted by the transferee company into, or being treated by it, as stock-in-trade of its business ; or
(ii) the parent company or its nominees or, as the case may be, the holding company ceasing to hold the whole of the share capital of the subsidiary company,
at any time before the expiry of the period of eight years from the date of such transfer, the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the transferor company for the relevant previous year and make the necessary amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the capital asset was so converted or treated or in which the parent company or its nominees or, as the case may be, the holding company cease to hold the whole of the share capital of the subsidiary company.
(8), (8A), (9), (9A) and (10) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1992.]
(10A) Where in the assessment for any year, a capital gain arising from the transfer of a long-term capital asset, is charged to tax and within a period of six months after the date of such transfer, the assessee has made any investment or deposit in any specified asset within the meaning of Explanation 1 to sub-section (1) of section 54E, the Assessing Officer shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax under the provisions of sub-section (1) of section 54E ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the assessment was made.
(10B) and (10C) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1st April, 1992.]
(11) Where in the assessment for any year, a capital gain arising from the transfer of any original asset as is referred to in section 54H is charged to tax and within the period extended under that section the assessee acquires the new asset referred to in that section or, as the case may be, deposits or invests the amount of such capital gain within the period so extended, the Assessing Officer shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax under any of the sections referred to in section 54H ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of section 154 being reckoned from the end of the previous year in which the compensation was received by the assessee.
1[(11A) Where in the assessment for any year, the deduction under section 10A or section 10B or section 10BA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 10A or section 10B or section 10BA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India, and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into, India.]
(12) Where in the assessment for any year commencing before the 1st day of April, 1988, the deduction under section 80-O in respect of any income, being the whole or any part of income by way of royalty, commission, fees or any similar payment as is referred to in that section, has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80-O in respect of such income or part thereof as is so received in, or brought into, India ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such income is so received in, or brought into, India ; so however, that the period from the 1st day of April, 1988 to the 30th day of September, 1991 shall be excluded in computing the period of four years.
2[(13) Where in the assessment for any year, the deduction under section 80HHB or section 80HHC or section 80HHD or section 80HHE or section 80-O or section 80R or section 80RR or section 80RRA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80HHB or section 80HHC or section 80HHD or section 80HHE or section 80-O or section 80R or section 80RR or section 80RRA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India ; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into India.]
3[(14) Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year, 4[credit for tax deducted or collected in accordance with the provisions of section 199 or, as the case may be section 206C] has not been given on the ground that the certificate furnished under 5[section 203 or section 206C] was not filed with the return and subsequently such certificate is produced before the Assessing Officer within two years from the end of the assessment year in which such income is assessable, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto :
Provided that nothing contained in this sub-section shall apply unless the 6[income from which the tax has been deducted or income on which the tax has been collected] has been disclosed in the return of income filed by the assessee for the relevant assessment year.]
3[(15) Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being land or building or both, is computed by taking the full value of the consideration received or accruing as a result of the transfer to be the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in accordance with sub-section (1) of section 50C, and subsequently such value is revised in any appeal or revision or reference referred to in clause (b) of sub-section (2) of that section, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the full value of the consideration to be the value as so revised in such appeal or revision or reference ; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order revising the value was passed in that appeal or revision or reference.]
7[(16) Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being a transfer by way of compulsory acquisition under any law, or a transfer, the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, is computed by taking the compensation or consideration as referred to in clause (a) or, as the case may be, the compensation or consideration enhanced or further enhanced as referred to in clause (b) of sub-section (5) of section 45, to be the full value of consideration deemed to be received or accruing as a result of the transfer of the asset and subsequently such compensation or consideration is reduced by any court, Tribunal or other authority, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the compensation or consideration as so reduced by the court, Tribunal or any other authority to be the full value of consideration; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order reducing the compensation was passed by the court, Tribunal or other authority.]
7[(17) Where a deduction has been allowed to an assessee in any assessment year under section 80RRB in respect of any patent, and subsequently by an order of the Controller or the High Court under the Patents Act, 1970 (39 of 1970),
(i) the patent was revoked, or
(ii) the name of the assessee was excluded from the patents register as patentee in respect of that patent,
the deduction from the income by way of royalty attributable to the period during which the patent had been revoked or the period for which the assessees name was excluded as patentee in respect of that patent, shall be deemed to have been wrongly allowed and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such order of the Controller referred to in clause (b) of sub-section (1), or the High Court referred to in clause (i) of sub-section (1) of section 2, of the Patents Act, 1970 (39 of 1970), as the case may be, was passed.]
Explanation : For the purposes of this section,
(a) additional compensation shall have the meaning assigned to it in clause (1) of the Explanation to sub-section (2) of section 54 ;
(b) additional consideration, in relation to the transfer of any capital asset the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, means the difference between the amount of consideration for such transfer as enhanced by any court, tribunal or other authority and the amount of consideration which would have been payable if such enhancement had not been made.
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1. Inserted by the Taxation Laws (Amendment) Act, 2006, with effect from 13th July, 2006.
2. Inserted by the Finance Act, 1999, with effect from 1st June, 1999.
3. Inserted by the Finance Act, 2002, with effect from 1st June, 2002.
4. Substitued for credit for tax deducted in accordance with the provisions of section 199 by the Finance Act, 2006, with effect from 1st April, 2007.
5. Substitued for section 203 by the Finance Act, 2006, with effect from 1st April, 2007.
6. Substituted for income from which the tax has been deducted by the Finance Act, 2006, with effect from 1st April, 2007.
7. Inserted by the Finance Act, 2003, with effect from 1st April, 2004.
When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the Assessing Officer shall serve upon the assessee a notice of demand in the prescribed form1 specifying the sum so payable.
2[Provided that where any sum is determined to be payable by the assessee under sub-section (1) of section 143, the intimation under that sub-section shall be deemed to be a notice of demand for the purposes of this section.]
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1. See rule 15 and Form No. 7. Also see rule 38 and Form No. 28. For analysis, see Mashbras Income-tax Rules.
2. Inserted by the Finance Act, 2008, with effect from 1st April, 2008.
When, in the course of the assessment of the total income of any assessee, it is established that a loss has taken place which the assessee is entitled to have carried forward and set-off under the provisions of sub-section (1) of section 72, sub-section (2) of section 73, sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A, the Assessing Officer shall notify to the assessee by an order in writing the amount of the loss as computed by him for the purposes of sub-section (1) of section 72, subsection (2) of section 73, sub-section (1) or sub-section (3) of section 74 or sub-section (3) of section 74A.
Whenever, in respect of the assessment year commencing on the 1st day of April, 1992, or any earlier assessment year, a registered firm is assessed, or an unregistered firm is assessed, under the provisions of clause (b) of section 183, the Assessing Officer shall notify to the firm by an order in writing the amount of its total income assessed and the apportionment thereof between the several partners.