CHAPTER XIV
PROCEDURE
FOR ASSESSMENT89[R1]
90[R2] 139. 91[R3] [(1) Every person92[R4] ,—
(a) being a company; or
(b) being a person
other than a company, 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 form93[R5] and verified in the prescribed manner and
setting forth such other particulars as may be prescribed:
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 notification94[R6] 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 specified95[R7] 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 96[R8] [cellular telephone not being a wireless in
local loop telephone]; or
(iv) has incurred
expenditure for himself or any other person on travel to any foreign country;
or
(v) is the holder
of a credit card97[R9] , 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
form98[R10] and
verified in the prescribed manner and setting forth such other particulars as
may be prescribed:
Provided further that the Central Government may, by
notification99[R11] 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 company shall furnish
on or before the due date the return in respect of its income or loss in every
previous year.
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 21[R12] 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
31st day of October 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 neighboring
countries or to such places of pilgrimage as the Board may specify in this
behalf by notification2 [R13] in
the Official Gazette.]
3[R14] [(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 specified by the Board in this behalf, by notification in the
Official Gazette3a[R15] and
subject to such conditions as may be specified 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 specified 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.]
4a[R17] [(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 specified by the Board in this behalf by notification in the Official
Gazette and subject to such conditions as may be specified 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 specified 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 6[R19] [***]
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) 7[R20] [or
sub-section (3)] of section 74, 8[R21] [or
sub-section (3) of section 74A], he may furnish, within the time allowed under
sub-section (1)
9[R22] [***],
a return of loss in the prescribed form10[R23]
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).
11[R24] [(4) Any person who has not furnished a return
within the time allowed12[R25] 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 time12[R26]
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.]
13[R27] [14[R28] [(4A) 15[R29] 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 form and verified in the
prescribed manner and setting forth such other particulars as may be prescribed
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[R30] [(4B) 17[R31] 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 form and verified in the prescribed manner and setting forth such
other particulars as may be prescribed 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).]
17a[R32] [(4C) Every—
(a) scientific 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;
(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 scientific
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 form17b[R33]
and verified in the prescribed manner and setting forth such other particulars
as may be prescribed 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).]
18[R34] [(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.]
19[R35] [(6) The prescribed form of the returns
referred to 20[R36] [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[R37] [,
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 22[R38] [in 23[R39] [***]
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 24[R40] [the
report of any audit 25[R41] [eferred
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.]
27[R43] [28[R44] (8)(a) 29[R45] [Where
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 30[R46] [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 31[R47] [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 32 [R48] [Assessing]
Officer may, in such cases and under such circumstances as may be prescribed33[R49] ,
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.]
34[R50] [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.]
35[R51] [(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 36[R52] [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 37[R53] [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.]]
38[R54] [(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.]
39[R55] [(9) Where the 40[R56] [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 40[R57] [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 40[R58] [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;
41[R59] [(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 deducted at source and
the advance tax and tax on self-assessment, if any, claimed to have been paid :
42[R59] [Provided
that where the return is not accompanied by proof of the tax, if any,
claimed to have been deducted at source, the return of income shall not be
regarded as defective if—
(a) a certificate for tax deducted was not furnished under
section 203 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 auditor’s
report 43[R60] [and,
where an audit of cost accounts of the assessee has been conducted, under
section 233B44[R61] 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.]
(10) 45[R62] [Omitted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1991.]
46[R63] [Permanent account number.
139A. (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 47[R64] [five lakh]
rupees in any previous year; or
(iii) who is required to furnish a return of income
under sub-section (4A) of section 139, and
who has not been allotted a permanent account number shall, within such time,
as may be prescribed48[R65] , apply to the Assessing Officer for the
allotment of a permanent account number.
49[R66] [(1A) Notwithstanding anything contained in
sub-section (1), the Central Government may, by notification50[R67] 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.]
(2) The Assessing Officer may also allot to
any other person by whom tax is payable, a permanent account number.
(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 notification51[R68] 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 prescribed52
[R69] by the Board in the interests of the
revenue, and entered into by him:
Provided
that the Board may prescribe different dates for different transactions or
class of transactions or for different class of persons:
53[R70] [Provided further that a person shall
quote General Index Register Number till such time Permanent Account Number is
allotted to such person;]
(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.
54[R71] [(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 :
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 non-resident Indian referred to
in section 115G:
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.
(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 sub-section (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:
Provided that the Central Government may, by
notification55[R72] 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.
(5C) Every buyer
referred to in section 206C shall intimate his permanent account number to the
seller referred to in that section.
(5D) Every seller
collecting tax in accordance with the provisions of section 206C shall quote
the permanent account number of every buyer referred to in that section—
(i) in all certificates furnished in accordance with the
provisions of sub-section (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.]
(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 56[R73] [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.
57[R74] (8) The Board may make rules 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 58[R75] [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;
59[R76] [(d) class or classes of persons to whom the provisions of this
section shall not apply;
(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;
(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 (c)*[R77]
(g) the time and
the manner in which the transactions referred to in clause (c)* 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;]
58[R78] [(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.]
60[R79] 140. The return
under section 139 shall be signed and verified—
61[R80] [(a) in the case of an individual,—
(i) by the individual himself;
(ii) where he is
absent from India, by the individual himself or by some person duly authorised by him in this behalf;
(iii) where he is
mentally incapacitated from attending to his affairs, by his guardian or any
other person competent to act on his behalf; and
(iv) where, for any
other reason, it is not possible for the individual to sign 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 the
individual to do so, which shall be attached to the return;]
(b) in the case of a Hindu undivided family,
by the karta, and, where the karta is absent from India or is mentally incapacitated
from attending to his affairs, by any other adult member of such family;
62[R81] [(c) in the case of a company, by the managing director thereof, or
where for any unavoidable reason such managing director is not able to sign and
verify the return, or where there is no managing director, by any director
thereof :
63[R81] [Provided that where the company is
not resident in India, the return may be signed and verified by a person who
holds a valid power of attorney from such company to do so, which shall be
attached to the return :
Provided
further that,—
(a) where the company is being wound up,
whether under the orders of a court or otherwise, or where any person has been
appointed as the receiver of any assets of the company, the return shall be
signed and verified by the liquidator referred to in sub-section (1) of section
178;
(b) where the
management of the company has been taken over by the Central Government or any
State Government under any law, the return of the company shall be signed and
verified by the principal officer thereof;]
(cc) in the case of a firm, by the managing
partner thereof, or where for any unavoidable reason such managing partner is
not able to sign and verify the return, or where there is no managing partner
as such, by any partner thereof, not being a minor;
(d) in the case
of a local authority, by the principal officer thereof;]
64[R82] [(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 chief executive officer is known as secretary or by any
other designation);]
(e) in the case
of any other association, by any member of the association or the principal
officer thereof; and
(f) in the case
of any other person, by that person or by some person competent to act on his
behalf.
66[R84] 140A. 67[R85] [(1)
Where any tax is payable on the basis of any return required to be furnished
under 68[R86] [section
139 or section 142 69[R87] [or
section 148 or 69a[R88] [section 153A
or], as the case may be, section 158BC]], after
taking into account the amount of tax, if any, already paid under any provision
of this Act,
70[R89] [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.]
71[R90] [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.]
72[R91] [(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.
(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.
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.]
(2) After a regular assessment under section
143 or section 144 73[R92] [or
an assessment under 73a[R93] [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 73[R94] [or
assessment, as the case may be].
74[R95] [(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.]
75[R96] [(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.]
141. [Omitted
by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.]
Provisional assessment for refund.
141A. 76[R97] [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
Section 141A was inserted by the Finance Act, 1968, w.e.f. 1-4-1968.
Original section was inserted by the Finance Act, 1963, w.e.f. 1-4-1963 and
omitted by the Finance Act, 1964, w.e.f. 1-4-1964.]
77[R98] 142. (1) For the purpose of making an assessment under
this Act, the 78[R99] [Assessing]
Officer may serve on any person who has made a return under section 139 79[R100] [or in whose case the time allowed under
sub-section (1) of that section for furnishing the return has expired] a notice
requiring him, on a date to be therein specified,—
80[R101] [(i) where
such person has not made a return 81[R102] [within
the time allowed under sub-section (1) of section 139], 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 form and verified in the prescribed manner82[R103] and setting forth
such other particulars
as may be prescribed, or]
83[R104] [(ii)] to produce, or cause to be produced, such
accounts or documents as the 84[R105] [Assessing]
Officer may require, or
85[R106] [(iii)] 86[R107]
to furnish in writing and verified in the prescribed 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 87[R108] [Assessing]
Officer may require :
Provided that—
(a) the previous
approval of the 88[R109] [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 89[R110] [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 89[R111] [Assessing] Officer may make such inquiry as he considers
necessary.
90[R112] [(2A)
91[R113] If, at any stage of the proceedings before
him, the 92[R114] [Assessing] Officer, having regard to the
nature and complexity93[R115] 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 94[R116] [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 94[R117] [Chief Commissioner or Commissioner] in this behalf
and to furnish a report of such audit in the prescribed form duly signed and
verified by such accountant and setting forth such particulars as may be
prescribed and such other particulars as the 95[R118] [Assessing] Officer may require.
(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 95[R119] [Assessing] Officer within such period as may
be specified by the 95[R120] [Assessing] Officer :
Provided that the 96[R121] [Assessing] Officer may, 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 97[R122] [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 XVII-D for the recovery of arrears of tax.]
(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) 98[R123] [or any audit under sub-section (2A)] and
proposed to be utilised for the purposes of the assessment.
99[R124] [(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.]
3[R127] 143. 4[R128] [(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)5[R129] , 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 acknow-ledgement 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 6[R130] [one year from the end of the financial year
in which the return is made :]
7[R131] [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) 8[R132] [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]
(1B) 9[R133] [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]
10[R134] [(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:
10a[R135] [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 10b[R136] [clause (ii)]
shall be served on the assessee after the expiry of twelve months from the end
of the month in which the return is furnished.]
11[R137] [(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:]
12[R138] [Provided that in the case of a—
(a) scientific
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 scientific 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 scientific 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 scientific research association
or other association 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.]
13[R139] [(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) 14[R140] [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]]
16[R142] 144. 17[R143] [(1)] If
any person—
(a) fails to make
the return required 18[R144] [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 19[R145] [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 20[R146] [Assessing]
Officer, after taking into account all relevant material which the 20[R147] [Assessing]
Officer has gathered, 21[R148] [shall, after
giving the assessee an oppor-tunity of being heard,
make the assessment22[R149] ] of the total
income or loss to the best of his judgment and determine the sum payable by
the assessee 23[R150] [* * *] on the
basis of such assessment :
24[R151] [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 judgment :
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.]
25[R152] [(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.]
26[R153] [Power of 27[R154] [Joint Commissioner] to issue directions in certain cases.
28[R155] 144A. 29[R156] [* * *] A 27[R157] [Joint Commissioner] may, on his own motion or
on a reference being made to him by the 30[R158] [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 30[R159] [Assessing] Officer to enable him to complete
the assessment and such directions shall be binding on the 30[R160] [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 31[R161] [section] no direction as to the lines on
which an investigation connected with the assessment should be made32,[R162] shall be deemed to be a direction prejudicial
to the assessee.
Reference to Deputy Commissioner in certain cases.
144B. 34[R164] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989. Original section 144B was inserted by the Taxation Laws (Amendment)
Act, 1975, w.e.f. 1-4-1976.]
35[R165] [Method of accounting.36[R166]
145. (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
regularly36[R167] employed by the assessee.
(2) The Central Government may notify in the
Official Gazette37[R168] 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.]
38[R169] [Method of accounting in certain cases.
145A. 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.]
Reopening of assessment at the instance of the assessee.
146. 39[R170] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
40[R171] [Income
escaping assessment.
41[R172] 147. If the 42[R173] [Assessing] Officer 43[R174] [has reason to believe44[R175] ] that any income chargeable to tax has
escaped assessment44[R176] for any assessment year, he may, subject to
the provisions of sections 148 to 153, assess or reassess44[R177] 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 failure44 [R178] 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 facts45[R179] necessary for his assessment, for that
assessment year.
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 necessarily45[R180] 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.]
46[R181] [Issue of notice where income
has escaped assessment.
47[R182] 148. 48[R183] [(1)] Before making the assessment,
reassessment or recomputation under section 147, the Assessing Officer shall
serve49[R184] on the assessee a notice requiring him to
furnish within such period, 50[R185] [* * *] 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 prescribed form and verified in the prescribed
manner and setting forth such other particulars as may be prescribed; and the
provisions of this Act shall, so far as may be51[R186] , apply accordingly as if such return were a
return required to be furnished under section 139.]
52[R187] [(2) The
Assessing Officer shall, before issuing any notice under this section, record
his reasons for doing so.]
149. 53[R188] [(1) No
notice under section 148 shall be issued54[R189] for the relevant assessment year,—
55[R190] [(a) if four years have elapsed from the end of
the relevant assessment year, unless the case falls under clause (b);
(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 more56[R191]
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.
Provision for
cases where assessment is in pursuance of an order on appeal, etc.
150. (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 57[R192] [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.
58[R193] [Sanction for
issue of notice.
151. (1) In a 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 59[R194] [by an Assessing Officer, who is below the
rank of Assistant Commissioner 60[R195] [or Deputy Commissioner], unless the 61[R196] [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 62[R197] [Joint] Commissioner, after the expiry of four
years from the end of the relevant assessment year, unless the 62[R198] [Joint] Commissioner is satisfied, on the
reasons recorded by such Assessing Officer, that it is a fit case for the issue
of such notice.]
152. (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 63[R199] [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.
Time limit for
completion of assessments and reassessments.
153. 64[R200] [(1) No
order of assessment65[R201] 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.]
66[R202] [(2) No
order of assessment, reassessment or recomputation shall be made under section
147 after the expiry of 67[R203] [one year] from the end of the financial year
in which the notice under section 148 was served :
68[R204] [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.]
69[R205] [(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 in pursuance of an order under section 250 or section 254 or 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.]
(3) The provisions of sub-sections (1) and
(2) shall not apply to the following classes of assessments, reassessments and recomputations which may, 70[R206] [subject to the provisions of sub-section
(2A),] be completed at any time—
(ii) where the assessment, reassessment or
recomputation is made on the assessee or any person72[R208]
in consequence of or to give effect to72[R209]
any finding or direction73[R210]
contained in an order under section 250, 254, 260, 262, 263, or 264 74[R211] [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.
75[R212] [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 proceeding76[R213]
is stayed by an order or injunction of any court, or
77[R214] [(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 78[R215] [Assessing] Officer
directs the assessee to get his accounts audited under sub-section (2A) of
section 142 and ending with 79[R216] [the last date on which
the assessee is required to furnish] a report of such audit under that
sub-section, or
81[R218] [(iva) the
period (not exceeding sixty days) commencing from the date on which the 82[R219] [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 a 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 that section, shall be excluded :
83[R220] [Provided that where immediately after
the exclusion of the aforesaid time or period, the period of limitation referred
to in sub-sections (1), (2) and (2A) 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.]
Explanation 2.—Where, by an order 84[R221] [eferred 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 84[R222] [eferred 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 person85[R223] , 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.
85a[R224] [Assessment in case of search or
requisition.
153A. 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 prescribed form and verified in the prescribed manner and setting forth
such other particulars as may be prescribed 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
referred to in this section 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.
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.
Time-limit for completion of assessment
under section 153A.
153B. (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 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.
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 that section, shall be excluded :
Provided that where immediately after the exclusion
of the aforesaid period, the period of limitation referred to in clause (a)
or clause (b) of this 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.
Assessment of income of
any other person.
153C. 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.]
86[R225] 154. 87[R226] [(1) With
a view to rectifying any mistake apparent from the record88[R227] an income-tax authority referred to in
section 116 may,—
(a) amend any order passed by it under the provisions of this
Act ;
89[R228] [(b) amend any intimation or deemed intimation
under sub-section (1) of section 143.]]
90[R229] [(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 91[R230] [***]
92[R231] [Commissioner
(Appeals)], by the 93[R232] [Assessing]
Officer also.
(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 95[R234] [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 95[R235] [Assessing] Officer shall serve on the
assessee a notice of demand in the prescribed form specifying the sum payable96[R236] , 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 97[R237] [from the end of the financial year in which
the order98[R238] sought to be amended was passed.]
99[R239] [(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.]
155. (1) 1[R240] [Where, in respect of any completed assessment2[R241] 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,
3[R242] [or]
4[R243] [(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 5[R244] [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 6[R245] [from the end of the financial year in which
the final order was passed] in the case of the firm.
7[R246] [(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 asso-ciation
or body under this section, section 154, section 250, section 254, section 260,
section 262, section 263 or section 264, 8[R247] [or]
8[R248] [(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 9[R249] [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 10[R250] [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.
(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) 12[R252] [or sub-section (3)] of section 74, 13[R253] [or sub-section (3) of section 74A,] the 14[R254] [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 15[R255] [from the end of the financial year in which
the order was passed] under section 147.
16[R256] [(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 17[R257] 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 18[R258] [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 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 19[R259] [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 (b), 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 20[R260] [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 transferred21[R261] 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 22[R262] 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 sub-section (4) of section 33 ;
or
(ii) at any time
before the expiry of the eight years referred to in sub-section (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 23[R263] [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.
24[R264] [(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
company25[R265] 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 sub-section (6) of section 33A ; or
(ii) at any time before
the expiry of the eight years referred to in sub-section (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 26[R266] [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.]
27[R267] [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.]
28[R268] [(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 29[R269] [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 period allowed
for the completion of the programme by the prescribed
authority expired.]
(6) 30[R270] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(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 31[R271] [Assessing] Officer may proceed to recompute the distributable income and determine the 32[R272] [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 33[R273] [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) 34[R274] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
35[R275] [(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 36[R276] [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 ceased to hold the whole
of the share capital of the subsidiary company.]
(8) 37[R277] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(8A) 38[R278] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(9) 39[R279] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(9A) 40[R280] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(10) 41[R281] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
42[R282] [(10A) Where
in the assessment for any year, a capital gain arising from the transfer of a 43[R283] [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 44[R284] [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 45[R285] [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 46[R286] [eckoned from the end of the financial year in
which the assessment was made.]
(10B) 47[R287] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
(10C) 48[R288] [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1992.]
49[R289] [(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.]
50[R290] [(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.]
51[R291] [(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.]
52[R292] [(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,
credit for tax deducted in accordance with the provisions of section 199 has
not been given on the ground that the certificate furnished under section 203
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 income from which the tax has been deducted has been
disclosed in the return of income filed by the assessee for the relevant
assessment year.
(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.]
The following sub-sections (16) and (17) shall be inserted after
sub-section (15) of section 155 by the Finance Act, 2003, w.e.f. 1-4-2004 :
(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.
(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 assessee’s 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.
53[R293] [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.]
156. When
any tax, interest, penalty, fine or any other sum 54[R294] [***] is payable in consequence of any order
passed under this Act, the 55[R295] [Assessing] Officer shall56[R296] serve upon the assessee a notice of demand in
the prescribed form57[R297] specifying the sum so payable.
157. 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, 58[R298] [sub-section (1) 59[R299] [or sub-section (3)] of section 74 or
sub-section (3) of section 74A], the 60[R300] [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, sub-section (2) of section 73,
60a[R301] [sub-section (1) 60b[R302] [or sub-section (3)] of section 74 or
sub-section (3) of section 74A].
Intimation of
assessment of firm.
158. 61[R303] [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 62[R304] [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.
[R1]For
the meaning of the term “assessment”
[R2]See also Circular No. 274, dated 28-6-1980, Circular No. 307, dated 23-6-1981, Circular No. 412, dated 2-3-1985, Circular No. 639, dated 13-11-1992, Circular No. 697, dated 16-12-1994, Circular No. 709, dated 19-7-1995, Circular No. 792, dated 21-6-2000, Circular No. 795, dated 1-9-2000 and Circular No. 10/2001, dated 19-7-2001.
[R3]Substituted by the Finance Act, 2001, w.e.f. 1-4-2001.
Prior to its substitution, sub-section (1), as amended by the Finance Act,
1963, w.r.e.f. 1-4-1962, Taxation Laws (Amendment)
Act, 1967, w.e.f. 1-10-1967, Taxation Laws (Amendment) Act, 1970, w.e.f.
1-4-1971, Finance Act, 1972, w.e.f. 1-4-1972, Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989, Direct Tax Laws (Second Amendment) Act, 1989, w.e.f.
1-4-1989, Finance Act, 1990, w.e.f. 1-4-1991, Finance Act, 1992, w.e.f. 1-4-1993,
Finance Act, 1994, w.e.f. 1-4-1994, Finance (No. 2) Act, 1996, w.e.f. 1-4-1997,
Finance Act, 1997, w.e.f. 1-4-1997, Finance (No. 2) Act, 1998, w.e.f. 1-8-1998
and Finance Act, 1999, w.e.f. 1-6-1999, read 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 the 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 sub-section (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.’
[R4]For the meaning of the expression “every person”
[R5]See rule
12. Returns prescribed are as follows :
|
In case of companies (except
section 25 companies) |
|
Form No. 1 |
|
In case of an assessee (other
than company) having business income |
|
Form No. 2 or Form No. 2D (Saral) |
|
In case of an assessee
(other than company) having no business income |
|
Form No. 3 or Form No. 2D (Saral) |
|
In case of trust/section 25 companies claiming exemption under section 11 |
|
Form No. 3A |
[R6]For notified areas, See also Circular No. 10/2001, dated 19-7-2001.
[R7]For specified floor areas
[R8]Substituted for “telephone” by the Finance Act, 2002, w.e.f. 1-4-2002
[R9]See also Circular No. 795, dated 1-9-2000
[R10]See rule 12 and Form No. 2C.
[R11]For notified persons
[R12]For definition of "motor vehicle
[R13]For notified places of pilgrimage and neighbouring countries
[R14]Inserted by the Finance Act, 2002, w.e.f. 1-4-2002.
Earlier sub-section (1A) was amended by the Finance Act, 1963, w.r.e.f. 1-4-1962, the Taxation Laws (Amendment) Act,
1970, w.e.f. 1-4-1971, the Finance Act, 1974, w.e.f. 1-4-1975, the Finance Act,
1982, w.e.f. 1-4-1983, the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985 and the Finance Act, 1985, w.e.f.
1-4-1986 and later on omitted by the Finance Act, 1992, w.e.f. 1-4-1993. Prior
to omission sub-section (1A) read as under :
‘(1A) Notwithstanding anything
contained in sub-section (1), no person need furnish under that sub-section a
return of his income or the income of any other person in respect of whose
total income he is assessable under this Act, if his income or, as the case may
be, the income of such other person during the previous year consisted only of
income chargeable under the head “Salaries” or of income chargeable under that
head and also income of the nature referred to in any one or more of clauses (i) to (ix) of sub-section (1) of section 80L and the
following conditions are fulfilled, namely :—
(a) where he or such
other person was employed during the previous year by a company, he or such
other person was at no time during the previous year a director of the company
or a beneficial owner of shares in the company (not being shares entitled to a
fixed rate of dividend whether with or without a right to participate in
profits) carrying not less than twenty per cent of the voting power;
(b) his income or the income of such other person
under the head “Salaries”, exclusive of the value of all benefits or amenities
not provided for by way of monetary payment, does not exceed twenty-four
thousand rupees;
(c) the amount of income of the nature referred
to in clauses (i) to (ix) of
sub-section (1) of section 80L, if any, does not, in the aggregate, exceed the
maximum amount allowable as deduction in his case under that section; and
(d) the tax deductible at source under section 192 from the income chargeable under the head “Salaries” has been deducted from that income.’
[R15]See Scheme for Bulk Filing of Returns by Salaried Employees, 2002. For details, see Income-tax Rules
[R16]Explanation omitted by the Taxation
Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Omitted Explanation read as
under :
‘Explanation.— For the purposes of this sub-section, “salary” shall have the meaning assigned to it in clause (1) of section 17.’
[R17]Inserted
by the Finance Act, 2003, w.e.f. 1-4-2003.
[R18]Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
omission, sub-section (2), as amended by the Taxation Laws (Amendment) Act,
1970, w.e.f. 1-4-1971, Finance Act, 1972, w.e.f. 1-4-1972 and Taxation Laws
(Amendment) Act,
1975, w.e.f. 1-4-1976, stood as under :
“(2)
In the case of any person who, in the Assessing Officer’s opinion, is
assessable under this Act, whether on his own total income or on the total
income of any other person during the previous year, the Assessing Officer may,
before the end of the relevant assessment year, issue a notice to him and serve
the same upon him requiring him to furnish, within thirty days from the date of
service of the notice, 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, on an application made in the prescribed manner, the Assessing Officer may, in his discretion, extend the date for furnishing the return, and, notwithstanding that the date is so extended, interest shall be chargeable in accordance with the provisions of sub-section (8).”
[R19]“has not been served with a notice under sub-section (2),” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R20]Inserted by the Finance Act, 1987, w.e.f. 1-4-1988
[R21]Inserted by the Finance Act, 1974, w.e.f. 1-4-1975.
[R22]“or by the thirty-first day of July of the assessment year relevant to the previous year during which the loss was sustained” omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its omission, the said expression was substituted for “within such further time which, on an application made in the prescribed manner, the Income-tax Officer may, in his discretion allow” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1987. Original expression was inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R23]See rules 12 and 12A.
[R24]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution, sub-section (4), as
substituted by the Finance Act, 1968, w.e.f. 1-4-1968 and amended by the
Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971, stood as under :
“(4)(a) Any person who has not furnished a return within
the time allowed to him under sub-section (1) or sub-section (2) may, before
the assessment is made, furnish the return for any previous year at any time
before the end of the period specified in clause (b), and the provisions
of sub-section (8) shall apply in every such case.
(b) The period referred to in clause (a)
shall be—
(i) where the
return relates to a previous year relevant to any assessment year commencing
on or before the 1st day of April, 1967, four years from the end of such
assessment year;
(ii) where the return
relates to a previous year relevant to the assessment year commencing on the
1st day of April, 1968, three years from the end of the assessment year;
(iii) where the return relates to a previous year relevant to any other assessment year, two years from the end of such assessment year.”
[R25]For the meaning of the
expressions “time allowed” and “at any time”
[R27]Restored to its original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier it was substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date.
[R28]Substituted by the Finance Act, 1972, w.e.f. 1-4-1973. Original sub-section was inserted by the Finance Act, 1970, w.e.f. 1-4-1971.
[R29]See rules 12 and 12A
[R30]Inserted
by the Taxation Laws (Amendment) Act, 1978, w.e.f. 1-4-1979.
[R31]See rules 12 and 12A
[R32]Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.
[R33]See rule 12(1)(e) and Form No. 3A.
[R34]Substituted by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
substitution, sub-section (5) stood as under :
“(5) If any person having furnished a return under sub-section (1) or sub-section (2), discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the assessment is made.”
[R35]Substituted
for sub-section (6) by the Taxation Laws (Amendment) Act, 1975, w.e.f.
1-4-1976.
[R36]Substituted for “in sub-sections (1), (2) and (3)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R37]Substituted
for “and value and belonging to him” by the Finance Act, 1999, w.e.f. 1-6-1999.
[R38]Substituted for “in sub-sections (1), (2) and (3)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R39]Words “sub-sections (1) and (3) of” omitted by the Finance Act, 1995, w.e.f. 1-7-1995.
[R40]Inserted by the Finance Act, 1988, w.e.f. 1-4-1989
[R41]Substituted for “obtained under section 44AB” by the Finance Act, 1995, w.e.f. 1-7-1995.
[R42]Omitted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its omission, sub-section (7) stood as under :
“(7) No return under sub-section (1) need be furnished by any person for any previous year if he has already furnished a return of income for such year in accordance with the provisions of sub-section (2).”
[R43]Substituted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. Original sub-section was inserted by the Finance Act, 1963, w.e.f. 28-4-1963.
[R44]See rule
119A.
[R45]Substituted for portion beginning with “Where the return” and ending with “under this sub-section” by the Finance Act, 1972, w.e.f. 1-4-1972.
[R46]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R47]Substituted for “twelve” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. Section 84 of the Amendment Act has clarified that the increase in the rate of interest will apply in respect of any period falling after 30-9-1984, also in those cases where the interest became chargeable or payable from an earlier date
[R48]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R49]See rule 117A.
[R50]Substituted
for the following Explanation, which was numbered as Explanation 2
by the Finance Act, 1972, w.e.f. 1-4-1972, by the Taxation Laws (Amendment)
Act, 1984, w.e.f. 1-4-1985 :
“Explanation 2.—For the purposes of this sub-section, where the assessee is a registered firm or an unregistered firm which has been assessed under clause (b) of section 138, the tax payable on the total income shall be the amount of tax which would have been payable if the firm had been assessed as an unregistered firm.”
[R51]Substituted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R52]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R53]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R54]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R55]Inserted
by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980.
[R56]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R57]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R58]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988.
[R59]Substituted by the
Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, clause (bb),
as inserted by the Finance Act, 1988, w.e.f. 1-4-1989, read as under :
“(bb) the return is accompanied by the report of the audit obtained under section 44AB;”
[R60]Inserted
by the Finance Act, 1985, w.e.f. 1-4-1985.
[R61]For text
of section 233B of the Companies Act, 1956, see Appendix One.
[R62]Prior to omission sub-section (10), as amended by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1986, Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and Finance Act, 1990, w.e.f. 1-4-1990, read as under :
“(10) Notwithstanding anything contained in any other provision of this Act, a return of income which shows the total income below the maximum amount which is not chargeable to tax shall be deemed never to have been furnished :
Provided that nothing hereinbefore contained shall apply to,—
(a) a return furnished in response to a notice under sub-section (2) of section 148;
(b) a return of a firm or a partner of a firm;
(c) a return of loss which has been furnished in accordance with the provisions of sub-section (3);
(d) a return of a person who has claimed exemption of income
from property held for charitable or religious purposes;
(e) a return furnished under sub-section (4B) in respect of a
political party; and
(f) a return furnished in support of a claim for refund under section 237.”
[R63]Substituted
by the Finance Act, 1995, w.e.f. 1-7-1995. Prior to its substitution, section
139A, as inserted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976
and later amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1988/1-4-1989 and the Finance
Act, 1990, w.e.f. 1-4-1990, read as under :
‘139A. Permanent account numbers.—(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 any previous year exceeded the maximum
amount which is not chargeable to income-tax and he has not been allotted any
permanent account number, shall, within such time as may be prescribed, apply
to the Assessing Officer for the allotment of a permanent account number.
(2) Notwithstanding anything contained
in sub-section (1), every person not falling under that sub-section, but—
(i) carrying on any business whose total sales,
turnover or gross receipts are or is likely to exceed fifty thousand rupees in
any previous year; or
(ii) who is required to furnish a return of income under
sub-section (4A) of section 139, and who has not been allotted any permanent
account number, shall, within such time as may be prescribed apply to the
Assessing Officer for the allotment of a permanent account number.
(3) The Assessing Officer may also allot
to any other person by whom tax is payable, a permanent account number.
(4) All permanent account numbers
allotted to assessees before the commencement of the Taxation Laws (Amendment)
Act, 1975 (41 of 1975), shall, with effect from such date as
the Board may,
by notification in the Official Gazette, specify, be deemed to have been
allotted to them under the provisions of this section.
(5) Where a permanent account number has
been allotted or is deemed to have been allotted to any person under this
section, he 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 prescribed by the Board in the interests of the revenue,
and entered into by him;
(d) intimate the Assessing Officer any change in his address or
in the name and nature of his business.
(6) The Board may make rules 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 shall be quoted by the persons to whom such numbers
have been allotted, in the documents pertaining to such transactions ;
(c) the
categories of documents pertaining to business or profession of the persons to
whom permanent account numbers have been allotted, in which such numbers shall
be quoted by them.
Explanation.— In this section,—
(a) [***]
(b) “permanent account number” means a number which the Assessing Officer may allot to any person for the purpose of identification.’
[R64]Substituted for “fifty thousand” by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R65]See rule 114 and Form No. 49A for application for allotment of PAN.
[R66]Inserted
by the Finance Act, 2000, w.e.f. 1-6-2000.
[R67]For
specified class or classes of persons,
[R68]For relevant notifications
[R69]See rules 114B to 114D and Form Nos. 60 & 61. See Appendix Two for detailed analysis of rules 114B to 114D.
[R70]Inserted
by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R71]Sub-sections
(5A) to (5D) inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R72]For notified dates
[R73]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R74]See rules 114 & 114B , 114C 114D and Form Nos. 49A, 60 & 61.
[R75]Inserted
by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R76] Clauses (d) to (g) inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R77]*Should be read as “clause (b)”.
[R78]Inserted by the Finance (No. 2) Act, 1998, w.e.f. 1-8-1998.
[R79]For relevant case laws
[R80]Substituted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
substitution, clause (a) stood as under :
“(a) in the case of an individual by the individual himself; where the individual is absent from India, by the individual concerned or by some person duly authorised by him in this behalf; and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;”
[R81]Substituted
for clauses (c) and (d) by the Taxation Laws (Amendment) Act,
1975, w.e.f. 1-4-1976.
[R82]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R83]Substituted
by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971. Original section
was inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[R84]See
also Circular No. 20(LXXXVI)-D of 1964 (extracts), dated 7-7-1964.
[R85]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R86]Substituted for “section 139 or section 148” by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991
[R87]Substituted for “or, as the case may be, section 148” by the Finance Act, 1999, w.e.f. 1-6-1999.
[R88]Inserted
by the w.e.f. 1-6-2003.
[R89]Substituted for “the assessee shall be liable to pay such tax before furnishing the return and the return shall be accompanied by proof of payment of such tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R90]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R91]Sub-sections (1A) and (1B) inserted by the Finance Act, 2001, w.r.e.f. 1-4-1989.
[R92]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R93]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R94]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999.
[R95]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution, sub-section (3), as substituted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, stood as under :
“(3) If any assessee fails to pay the
tax or any part thereof in accordance with the provisions of sub-section (1),
the Assessing Officer may direct that a sum equal to two per cent of such tax
or part thereof, as the case may be, shall be recovered from him by way of
penalty for every month during which the default continues :
Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard.”
[R96]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989.
[R97]Prior to its omission, section 141A was amended by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971, Finance Act, 1974, w.e.f. 1-4-1975, Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976, Finance Act, 1976, w.e.f. 1-4-1976 and the Finance Act, 1988, w.e.f. 1-4-1988.
[R98]For relevant case laws
[R99]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R100]Substituted for “or to whom a notice has been issued under sub-section (2) of section 139 (whether a return has been made or not)” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Earlier, the italicised words were substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R101]Inserted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R102]Substituted
for “before the end of the relevant assessment year” by the Finance Act, 1990,
w.e.f. 1-4-1990.
[R103]See rule 14 for form of verification which shall
be in the following form : “I declare that to the best of my knowledge and
belief, the information furnished in the statement/statements is correct and
complete and the other particulars shown therein are truly stated”.
[R104]Renumbered
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R106]Renumbered
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R107]See rule 14
[R108]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R109]Substituted for “Deputy Commissioner” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner” was substituted for “Inspecting Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R110]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R111]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R114]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R115]For the meaning of the term “complexity
[R116]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R117]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R119]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R121]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R122]Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R124]Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989.
[R125]Substituted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Section 143, as substituted by
the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971 and later on amended
by the 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, stood as under :
‘143. Assessment.— (1) (a)
Where a return has been made under section 139, the Assessing Officer may,
without requiring the presence of the assessee or the production by him of any
evidence in support of the return, make an assessment of the total income or
loss of the assessee after making such adjustments to the income or loss
declared in the return as are required to be made under clause (b), with
reference to the return and the accounts and documents, if any, accompanying
it, and for the purposes of the adjustments referred to in sub-clause (iv)
of clause (b), also with reference to the record of the assessments, if
any, of past years, and determine the sum payable by the assessee or refundable
to him on the basis of such assessment.
(b) In making an assessment of
the total income or loss of the assessee under clause (a), the Assessing
Officer shall make the following adjustments to the income or loss declared in
the return, that is to say, he shall,—
(i) rectify any
arithmetical errors in the return, accounts and documents, referred to in
clause (a) ;
(ii) [*
* *]
(iii) [*
* *]
(iv) give due effect
to the allowance referred to in sub-section (2) of section 32, the deduction
referred to in clause (ii) of sub-section (3) of section 32A or clause (ii)
of sub-section (2) of section 33 or clause (ii) of sub-section (2) of
section 33A or clause (i) of sub-section (2)
of section 35 or sub-section (1) of section 35A or sub-section (1) of section
35D or sub-section (1) of section 35E or the first proviso to clause (ix)
of sub-section (1) of section 36, any loss 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 and the
deficiency referred to in sub-section (3) of section 80J, as computed, in each
case, in the regular assessment, if any, for the earlier assessment year or
years.
(2)
Where a return has been made under section 139, and—
(a) an assessment having been made under
sub-section (1), the assessee makes within one month from the date of service
of the notice of demand issued in consequence of such assessment, an
application to the Assessing Officer objecting to the assessment, or
(b) whether or not an
assessment has been made under sub-section (1), the Assessing Officer considers
it necessary or expedient to verify the correctness and completeness of the
return by requiring the presence of the assessee or the production of evidence
in this behalf,
the Assessing Officer shall serve on the assessee a notice
requiring him, on a date to be therein specified, either to attend at the
Assessing Officer’s office or to produce, or to cause to be there produced, any
evidence on which the assessee may rely in support of the return :
Provided that, in a case, where an
assessment has been made under sub-section (1), the notice under this
sub-section except where such notice is in pursuance of an application by the
assessee under clause (a) shall not be issued by the Assessing Officer
unless the previous approval of the Deputy Commissioner has been obtained to
the issue of such notice :
Provided
further
that in a case where the assessment made under sub-section (1) is objected to
by the assessee by an application under clause (a), the assessee shall
not be deemed to be in default in respect of the whole or any part of the
amount of the tax demanded in pursuance of the assessment under that
sub-section, which is disputed by the assessee, in so far as such amount does
not relate to any adjustment referred to in sub-clause (i)
of clause (b) of sub-section (1), and further no interest shall be
chargeable under sub-section (2) of section 220 in respect of such disputed
amount.
(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,—
(a) in a case where no assessment has been made
under sub-section (1), 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 refundable to him on the basis of such assessment ;
(b) in a case where an assessment has been made
under sub-section (1), if either such assessment has been objected to by the
assessee by an application under clause (a) of sub-section (2) or the
Assessing Officer is of opinion that such assessment is incorrect, inadequate
or incomplete in any material respect, the Assessing Officer shall, by an order
in writing, make a fresh assessment of the total income or loss of the
assessee, and determine the sum payable by him or refundable to him on the
basis of such assessment.
Explanation.—For the purposes of
this section,—
(1) an assessment under sub-section (1) shall be deemed to be
incorrect, inadequate or incomplete in a material respect, if—
(a) the
amount of the total income as determined under sub-section (1) is greater or
smaller than the amount of the total income on which the assessee is properly
chargeable under this Act to tax ; or
(b) the
amount of the tax payable as determined under sub-section (1) is greater or
smaller than the amount of the tax properly payable under this Act by the
assessee ; or
(c) the amount of any loss as determined under sub-section (1)
is greater or smaller than the amount of the loss, if any, determinable under
this Act on a proper computation ; or
(d) the
amount of any depreciation allowance, development rebate or any other allowance
or deduction as determined under sub-section (1) is greater or smaller than the
amount of the depreciation allowance, development rebate or, as the case may
be, other allowance or deduction properly allowable under this Act ; or
(e) the
amount of the refund as determined under sub-section (1) is greater or smaller
than the amount of the refund, if any, due under this Act on a proper
computation ; or
(f) the status in which the assessee has been assessed under
sub-section (1) is different from the status in which the assessee is properly
assessable under this Act ;
(2) “status”, in relation to an assessee, means the classification of the assessee as an individual, a Hindu undivided family, or any other category of persons referred to in clause (31) of section 2, and where the assessee is a firm, its classification as a registered firm or an unregistered firm.’
[R126]The provisions of section 143 as they stood
before the commencement of the Direct Tax Laws (Amendment) Act, 1987, shall
apply in respect of assessments for the assessment year commencing on the 1st
day of April, 1988 and any earlier assessment year—vide Income-tax
(Removal of Difficulties) Order, 1989.
[R127]See also Circular No. 201, dated 5-7-1976, Instruction No. 1395, dated 15-5-1981 [Source : 114th Report [1982-83] of the Public Accounts Committee, pp. 16-17], Circular No. 230, dated 27-10-1977. Relevant extracts from minutes of 12th meeting of CDTAC held on 17-8-1967, Circular No. 1 [C. No. 9(17)-IT/50], dated 24-4-1950, Circular No. 18 (XL-37), dated 28-4-1955, Circular No. 125, dated 26-11-1973, Circular No. 36(XL-52), dated 19-11-1958, Circular No. 50(XL-43), dated 28-12-1956, Letter [F.No. 91/41/67/ITJ(25)], dated 3-7-1967, Letter [F.No. 81/27/65-IT(B)], dated 18-5-1965, Circular No. 14 (XL-35), dated 11-4-1955, Circular No. 3 of 1942, dated 16-1-1942, Circular No. 601, dated 4-6-1991, Circular No. 689, dated 24-8-1994, Instruction No. 1617, dated 18-5-1985, Instruction No. 574, dated 27-7-1993 and Press Release dated 12-3-1996.
[R128]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 the assessee :
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.”
[R130]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.
[R131]Third proviso inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R132]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, Finance Act, 1992, w.r.e.f. 1-4-1989 and
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.”
[R133]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.”
[R134]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 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.”
[R135]Inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R136]Substituted
for “this sub-section” by the Finance Act, 2003, w.e.f. 1-6-2003.
[R137]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.”
[R138]Inserted
by the Finance Act, 2002, w.e.f. 1-4-2003.
[R139]Inserted
by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989.
[R140]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.”
[R141]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.”
[R142]For departmental instructions and relevant case laws
[R143]Renumbered by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1989
[R144]Substituted
for “by any notice given under sub-section (2) of section 139” by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R145]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R146]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R147]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R148]Substituted
for “shall make the assessment” by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1989.
[R149]For the meaning of the expression “make the assessment
[R150]Words
“or refundable to the assessee” omitted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988.
[R153]Inserted
by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976.
[R154]Substituted for “Deputy Commissioner” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner” was substituted for “Inspecting Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R155]For relevant case laws,
[R157]Substituted for “Deputy Commissioner” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner” was substituted for “Inspecting Assistant Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R158]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R160]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R161]Substituted for “sub-section” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989
[R162]For the meaning of the expression “direction as to . . . should be made”
[R163]Omitted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its omission, sub-section (2) stood as under :
“(2) The provisions of this section shall be in addition to, and not in derogation of, the provisions contained in sub-section (3) of section 119.”
[R164]Prior to its omission, section 144B was amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R165]Substituted
by the Finance Act, 1995, w.e.f. 1-4-1997. Prior to its substitution, section 145, as amended by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988/1-4-1989 and the Finance
Act, 1990, w.r.e.f. 1-4-1989, read as under :
‘145. Method of accounting.—(1) Income chargeable
under the head “Profits and gains of business or profession” or “Income from
other sources” shall be computed in accordance with the method of accounting
regularly employed by the assessee :
Provided that in any case where
the accounts are correct and complete to the satisfaction of the Assessing Officer but
the method employed is such that, in the opinion of the Assessing Officer, the
income cannot properly be deduced therefrom, then the
computation shall be made upon such basis and in such manner as the Assessing
Officer may determine :
Provided further that where no method of
accounting is regularly employed by the assessee, any income by way of
interest on securities shall be chargeable to tax as the income of the previous
year in which such interest is due to the assessee :
Provided also that nothing contained
in this sub-section shall preclude an assessee from being charged to income-tax
in respect of any interest on securities received by him in a previous year if
such interest had not been charged to income-tax for any earlier previous year.
(2) Where the Assessing Officer is not satisfied about the correctness or the completeness of the accounts of the assessee, or where no method of accounting has been regularly employed by the assessee, the Assessing Officer may make an assessment in the manner provided in section 144.’
[R166]For relevant case laws, For the meaning of the term “regularly
[R167]For relevant case laws,. For the meaning of the term “regularly”
[R168]See Notification No. SO 69(E), dated 25-1-1996 for Notified Accounting Standards.
[R170]Prior to its omission, section 146 was amended by the Finance Act, 1963, w.e.f. 28-4-1963, Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R171]Substituted by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1989. Prior to its substitution, section 147 stood as under :
“If—
(a) the
Assessing Officer has reason to believe that, by reason of the omission or
failure on the part of an assessee to make a return under section 139 for any
assessment year to the Assessing Officer or to disclose fully and truly all
material facts necessary for his assessment for that year, income chargeable
to tax has escaped assessment for that year, or
(b) notwithstanding
that there has been no omission or failure as mentioned in clause (a) on the
part of the assessee, the Assessing Officer has in consequence of information
in his possession reason to believe that 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 or recompute the loss or the depreciation
allowance, as the case may be, for the assessment year concerned (hereafter in
sections 148 to 153 referred to as the relevant assessment year).
Explanation 1.—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 income chargeable to tax has been under-assessed ; or
(b) where such income has been assessed at too low a rate ; or
(c) where such income has been made the subject of excessive
relief under this Act or under the Indian Income-tax Act, 1922 (11 of 1922) ;
or
(d) where excessive loss or depreciation allowance has been
computed.
Explanation 2.—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 this section.”
[R172]See also Circular [F. No. 45A/180/52-IT], dated 6-12-1955.
[R173]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R174]Substituted for “, for reasons to be recorded by him in writing, is of the opinion” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R175]For
the meaning of the terms/expressions “reason to believe”, “assessment”,
“reassess” and “failure”,
[R176]For the meaning of the terms/expressions “reason to believe”, “assessment”, “reassess” and “failure”
[R177]For the meaning of the terms/expressions “reason to believe”, “assessment”, “reassess” and “failure”,
[R178]For the meaning of the terms/expressions “reason to believe”, “assessment”, “reassess” and “failure”
[R179]For the meaning of the expressions “material facts” and “not necessarily”
[R180]For the meaning of the expressions “material facts” and “not necessarily”
[R181]Substituted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
substitution, section 148 stood as under :
“(1) Before making the assessment,
reassessment or recomputation under section 147, the Assessing Officer shall
serve on the assessee a notice containing all or any of the requirements which
may be included in a notice under sub-section (2) of section 139
; and the provisions of this Act shall, so far as may be, apply
accordingly as if the notice were a notice issued under that sub-section.
(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for doing so.”
[R182]Notification No. SO 1178, dated 11-2-1982, refer Direct Taxes Circulars.
[R183]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R184]For the meaning of the term “serve
[R185]Words “not being less than thirty days,” omitted by the Finance (No. 2) Act, 1996, w.r.e.f. 1-4-1989.
[R186]For the meaning of the expression “so far as may be”
[R187]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R188]Substituted for the following sub-section (1) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 :
“(1) No notice under section 148 shall be issued,
(a) in cases falling under clause (a) of section 147—
(i) for the relevant assessment year, if eight years have elapsed from the end of that year, unless the case falls under sub-clause (ii) ;
(ii) for
the relevant assessment year, where eight years, but not more than sixteen
years, have elapsed from the end of that 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 ;
(b) in cases falling under clause (b) of section 147, at any time after the expiry of four years from the end of the relevant assessment year.”
[R189]For the meaning of the term “issued”
[R190]Clauses
(a) and (b) substituted by the Finance Act, 2001, w.e.f. 1-6-2001. Prior to
their substitution, clauses (a) and (b), as amended by the Direct Tax Laws (Second
Amendment) Act, 1989, w.e.f. 1-4-1989, read 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 ;
(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.”
[R191] For the meaning of the expression “likely
to amount to one lakh rupees or more”
[R192]Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R193]Substituted for the
following section by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 :
“(1) No notice shall be issued under section 148 after the
expiry of eight years from the end of the relevant assessment year, unless the
Board is satisfied on the reasons recorded by the Assessing Officer that it is
a fit case for the issue of such notice.
(2) No notice shall be issued under section 148 after the expiry of four years from the end of the relevant assessment year, unless the Chief Commissioner or Commissioner is satisfied on the reasons recorded by the Assessing Officer that it is a fit case for the issue of such notice.”
[R194]Substituted for “except by an Assessing Officer of the rank of Assistant Commissioner or Deputy Commissioner” by the Finance Act, 1990, w.e.f. 1-4-1990.
[R195]Inserted
by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R196]Substituted for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R197]Substituted
for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R198]Substituted
for “Deputy” by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998.
[R199]Substituted
for “in circumstances falling under clause (b) of section 147” by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R200]Substituted by the Finance Act, 1989, w.e.f. 1-4-1989. Earlier sub-section (1) was substi-tuted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. Prior to its substitution, sub-section (1) [as it stood before its substitution by the Direct Tax Laws (Amendment) Act, 1987] was substituted by the Finance Act, 1968, w.e.f. 1-4-1968 and later on amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984, and it stood as under :
“(1) No order of assessment shall be made under section 143 or section 144 at any time after—
(a) the expiry of—
(i) four years from the end of the assessment
year in which the income was first assessable, where such assessment year is an
assessment year commencing on or before the 1st day of April, 1967 ;
(ii) three
years from the end of the assessment year in which the income was first
assessable, where such assessment year is the assessment year commencing on the
1st day of April, 1968 ;
(iii) two
years from the end of the assessment year in which the income was first
assessable, where such assessment year is an assessment year commencing on or
after the 1st day of April, 1969 ; or
(b) the
expiry of eight years from the end of the assessment year in which the income
was first assessable, in a case falling within clause (c) of sub-section
(1) of section 271 ;
(c) the expiry of one year from the date of the filing of a
return or a revised return under sub-section (4) or sub-section (5) of section
139 ;
(d) the expiry of six months from the end of the month in which an application under clause (a) of sub-section (2) of section 143 is made by the assessee,whichever is latest.”
[R201]Substituted for the following sub-section (2) by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 :
“(2) No order of assessment, reassessment or recomputation shall be made under section 147—
(a) where the assessment, reassessment or recomputation is to be made under clause (a) of that section, after the expiry of four years from the end of the assessment year in which the notice under section 148 was served ;
(b) where the assessment, reassessment or recomputation is to be
made under clause (b) of that section, after—
(i) the expiry of four
years from the end of the assessment year in which the income was first
assessable, or
(ii) the expiry of one year from the date of service of the notice under section 148, whichever is later.”
[R202]Substituted for “two years” by the Finance Act, 2001, w.e.f. 1-6-2001.
[R203]Proviso substituted by the Finance Act, 2001, w.e.f. 1-6-2001. Prior to its substitution, proviso read 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.”
[R204]Proviso substituted by the Finance Act, 2001, w.e.f. 1-6-2001. Prior to its substitution, proviso read 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.”
[R205]Substituted
by the Finance Act, 2001, w.e.f. 1-6-2001. Prior to its substitution,
sub-section (2A), as inserted by the Taxation Laws (Amendment) Act, 1970,
w.e.f. 1-4-1971 and later on amended by the Direct Tax Laws (Amendment) Act,
1987, w.e.f. 1-4-1988, read 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.”
[R206]Inserted by the Taxation Laws (Amendment) Act, 1970, w.e.f. 1-4-1971.
[R207]Omitted by the Finance
Act, 2001, w.e.f. 1-6-2001. Prior to its omission, clause (i)
read as under :
“(i) where a fresh assessment is made under section 146;”
[R208]For the meaning of expressions “any person” and “in consequence of or to give effect to”
[R209]For the meaning of expressions “any person” and “in consequence of or to give effect to”
[R210]For the meaning of the terms “finding or direction
[R211]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R212]Substituted by the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-1-1976 as regards clauses (i), (ii) and (iv) and w.e.f. 1-4-1976 as regards clauses (iii) and (v).
[R213]For the meaning of the expression “assessment proceeding”
[R214]Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.
[R215]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R216]Substituted for “the date on which the assessee furnishes” by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.
[R217]Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
omission, clause (iv) stood as under :
“(iv) the period (not exceeding one hundred and eighty days) commencing from the date on which the Assessing Officer forwards the draft order under sub-section (1) of section 144B to the assessee and ending with the date on which the Assessing Officer receives the directions from the Deputy Commissioner under sub-section (4) of that section, or, in a case where no objections to the draft order are received from the assessee, a period of thirty days, or”
[R218]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R219]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R220]Inserted by the Finance (No. 2) Act, 1991, w.e.f. 27-9-1991.
[R221]Substituted
for “under section 250, 254, 260, 262, 263 or 264” by the Direct Taxes
(Amendment) Act, 1964, w.e.f. 6-10-1964.
[R222]Substituted for “under section 250, 254, 260, 262, 263 or 264” by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R223]For the meaning of the expression “another person”
[R224]Sections
153A, 153B and 153C inserted by the Finance Act, 2003, w.e.f. 1-6-2003.
[R225]See also Circular No. 68, dated 17-11-1971, Circular No. 71, dated 20-12-1971, Circular No. 73, dated 7-1-1972, Circular No. 87, dated 19-6-1972 in supersession of Circular No. 81, dated 26-3-1972, Circular No. 581, dated 28-9-1990, Circular No. 669, dated 25-10-1993, Circular No. 668, dated 20-10-1993 and Circular No. 725, dated 16-10-1995
[R226]Substituted by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Prior to its
substitution, sub-section (1), as substituted by the Taxation Laws (Amendment)
Act, 1984, w.e.f. 1-10-1984, stood as under :
“(1) With a view to rectifying any mistake apparent from the
record, an income-tax authority referred to in section 116 may amend any order
passed by it under the provisions of this Act.”
Prior to its substitution by the Amendment Act, 1984, sub-section (1) was amended by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964, the Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R227]For the meaning of the terms/expressions “mistake”, “record”, “mistakes apparent” and “mistake apparent from the record”
[R228]Substituted by the Finance Act, 1999, w.e.f.
1-6-1999. Prior to its substitution, clause (b), as substituted by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989, read 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.”
[R229]Inserted by the Direct Taxes (Amendment) Act, 1964, w.e.f. 6-10-1964.
[R230]Words
“Deputy Commissioner (Appeals) or the” omitted by the Finance (No. 2) Act,
1998, w.e.f. 1-10-1998. Earlier “Deputy Commissioner (Appeals)” was
substituted for “Appellate Assistant Commissioner” by the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1988.
[R231]Inserted by the Finance (No. 2) Act, 1977, w.e.f. 10-7-1978.
[R232]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R233]Proviso
omitted by the Finance Act, 1994, w.e.f. 1-6-1994. Prior to its omission,
proviso, as inserted by the Finance Act, 1992, w.e.f. 14-5-1992, read as under :
“Provided that the Assessing Officer shall make an amendment for rectifying any mistake, which has been brought to his notice by the assessee in relation to an intimation referred to in clause (b) of sub-section (1), within a period of three months from the end of the month in which it is so brought to his notice and if no such amendment is made within the said period of three months, the assessee may appeal to the Deputy Commissioner (Appeals) or, as the case may be, Commissioner (Appeals) against such intimation and the provisions of section 246 and section 249 shall have effect as if the said intimation were an order for the purposes of those sections.”
[R234]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R235]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R236]For the meaning of expression “the sum payable”
[R237]Substituted
for “from the date of the order sought to be amended” by the Taxation Laws
(Amendment) Act, 1984, w.e.f. 1-10-1984.
[R238]For the meaning of the term/expression “order” and “completed assessment”
[R239]Inserted by the Finance Act, 2001, w.e.f. 1-6-2001.
[R240]Substituted
for “Where in respect of any completed assessment of a partner in a firm” by
the Finance Act, 1992, w.e.f. 1-4-1993. Earlier, the expression was amended by
the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and the Direct Tax
Laws (Amendment) Act, 1987, with effect from the same date.
[R241]For the meaning of the terms/expressions “order” and “completed assessment”
[R242]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R243]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R244]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R245]Substituted for “from the date of the final order passed” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R246]Inserted by the Finance Act, 1992, w.e.f. 1-4-1993.
[R247]Inserted
by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R248]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R249]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R250]Substituted for “from the date of the final order passed” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984.
[R251]Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.
[R252]Inserted
by the Finance Act, 1987, w.e.f. 1-4-1988.
[R253]Inserted
by the Finance Act, 1974, w.e.f. 1-4-1975.
[R254]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R255]Substituted
for “from the date of the order passed” by the Taxation Laws (Amendment) Act,
1984, w.e.f. 1-10-1984.
[R256]Inserted by the Finance Act, 1976, w.e.f. 1-4-1976.
[R257]For definition of “Government company”
[R258]Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.
[R259]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R260]Substituted for “Explanation to clause (vi) of sub-section (1) of section 32” by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988.
[R261]For the meaning of the expression “otherwise transferred”
[R262]For definition of “Government company”
[R263]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R264]Inserted by the Finance Act, 1965, w.e.f. 1-4-1965.
[R265]For definition of “Government company”
[R266]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R268]Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992. Original sub-section (5) was inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981
[R269]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R270]Prior to omission, sub-section (6), as amended by the
Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(6) Where any such debt or part of debt as is referred to in clause (vii) of sub-section (1) of section 36 is written off as irrecoverable in the accounts of the assessee for a previous year and the Assessing Officer is satisfied that such debt or part thereof became a bad debt in an earlier previous year not falling beyond a period of four previous years immediately preceding the previous year in which the debt or part is written off, the Assessing Officer may, notwithstanding anything contained in this Act, allow such debt or part as a deduction for such earlier previous year, if the assessee accepts such a finding of the Assessing Officer, and recompute the total income of the assessee for such earlier 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 financial year in which the assessment relating to the previous year in which the debt is written off is made.”
[R271]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R272]Substituted for “super-tax” by the Finance Act, 1965, w.e.f. 1-4-1965.
[R273]Substituted
for “from the date of the final order passed” by the Taxation Laws (Amendment)
Act, 1984, w.e.f. 1-10-1984.
[R274]Prior to omission, sub-section (7A), as inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(7A) Where in the assessment for any year, the 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 under section 48 and the compensation for such acquisition or the consideration for such transfer is enhanced or further enhanced by any court, tribunal or other authority, the computation or, as the case may be, computations made earlier shall be deemed to have been wrongly made and the Assessing Officer shall, notwithstanding anything contained in this Act, recompute in accordance with section 48 the capital gain arising from such transfer by taking the compensation or the consideration as enhanced or further enhanced, as the case may be, to be the full value of the consideration received or accruing as a result of such transfer and shall 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 additional compensation or consideration was received by the assessee.”
[R275]Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985.
[R276]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R277]Prior to omission,
sub-section (8), as inserted by the Finance Act, 1978, w.r.e.f.
1-4-1974 and amended by the Finance Act, 1982, w.e.f. 1-4-1983, Finance Act,
1984, w.e.f. 1-10-1984, Finance Act, 1986, w.e.f. 1-4-1987 and the Direct Tax
Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(8) Where in the assessment for any year, a capital gain arising from the transfer of any such capital asset as is referred to in section 54 is charged to tax and within a period of two years after the date of the transfer the assessee purchases, or within three years from that date constructs a residential house, 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 54; 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.”
[R278]Prior to omission, sub-section (8A), as inserted by
the Finance Act, 1978, w.r.e.f. 1-4-1974 and amended
by the Finance Act, 1982, w.e.f. 1-4-1983, Finance Act, 1986, w.e.f. 1-4-1987
and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(8A) Where in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition under any law of any such capital asset as is referred to in section 54 is charged to tax and if the compensation for such acquisition is enhanced or further enhanced, as the case may be, by any court, Tribunal or other authority, and the assessee purchases, within a period of two years after the date of receipt of the additional compensation or constructs, within a period of three years after that date, a residential house, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54; 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 additional compensation was received by the assessee.”
[R279]Prior to omission, sub-section (9), as inserted by the Finance Act, 1973, w.e.f. 1-4-1974 and amended by the Finance Act, 1978, w.r.e.f. 1-4-1974, Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(9) Where in the assessment for any year, a capital gain arising from the transfer of any such capital asset as is referred to in section 54B is charged to tax and within a period of two years after the date of the transfer, the assessee purchases any other land for being used for agricultural purposes, the Assessing Officer shall amend the order of assessment so as to exclude the amount to the capital gain not chargeable to tax under the provisions of sub-section (1) of section 54B; 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.”
[R280]Prior to omission, sub-section (9A), as inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(9A) Where in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition under any law of any such capital asset as is referred to in section 54B is charged to tax and if the compensation for such acquisition is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and within a period of two years after the receipt of the additional compensation, the assessee purchases any land for being used for agricultural purposes, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54B; 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 additional compensation was received by the assessee.”
[R281]Prior
to omission, sub-section (10), as inserted by the Finance Act, 1973, w.e.f.
1-4-1974 and amended by the Finance Act, 1978, w.r.e.f.
1-4-1974, Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and Direct Tax
Laws (Amendment)
Act, 1987, w.e.f. 1-4-1988, read as under :
“(10)
(a) Where in the assessment for any year, a capital gain arising from
the transfer by way of compulsory acquisition of any such capital asset as is
referred to in section 54D is charged to tax and within a period of three years
after the date of the transfer, the assessee purchases any other land or
building or any right in any other land or building or constructs any other
building for the purposes of shifting or re-establishing the industrial
undertaking referred to in that section or setting up another industrial
undertaking, 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 54D; 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.
(b)
Where in the assessment for any year, a capital gain arising from the transfer
by way of compulsory acquisition of any such capital asset as is referred to in
section 54D is charged to tax and if the compensation for such acquisition is
enhanced or further enhanced, as the case may be, by any court, tribunal or
other authority, and within a period of three years after the date of receipt
of the additional compensation, the assessee purchases any land or building or
any right in any land or building or constructs any
building for the purpose of shifting or re-establishing the undertaking referred to in sub-section (1) of that section or setting up any other industrial undertaking, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54D; 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 additional compensation was received by the assessee.”
[R282]Inserted
by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.
[R283]Substituted for “capital asset, not being a short-term capital asset” by the Finance Act, 1987, w.e.f. 1-4-1988.
[R284]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R285]Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974
[R286]Substituted for “reckoned from the date of the assessment” by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984
[R287]Prior
to omission, sub-section (10B), as inserted by the Finance Act, 1978, w.e.f.
1-4-1978 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under :
“(10B) Where in the assessment for any year, a capital gain arising from the transfer, being a transfer by way of compulsory acquisition or a transfer the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, of any capital asset, not being a short-term capital asset, is charged to tax and if the compensation or, as the case may be, consideration for such transfer is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and within a period of six months after the receipt of the additional compensation or consideration, the assessee invests or deposits the whole or any part of the additional compensation or consideration in any specified asset referred to in Explanation 1 of sub-section (1) of section 54E, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (3) 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 previous year in which the additional compensation or consideration was received by the assessee.”
[R288]Prior
to omission, sub-section (10C), as inserted by the Finance Act, 1982, w.e.f.
1-4-1983 and amended by the
Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and the Direct Tax Laws
(Amendment) Act, 1987, w.e.f. 1-4-1987, read as under :
“(10C) Where in the assessment for any year, a capital gain arising from the transfer of any such capital asset as is referred to in section 54F is charged to tax and within a period of one year after the date of the transfer the assessee purchases, or within three years from that date constructs, a residential house, 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 54F; 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.”
[R289]Inserted by the Finance
(No. 2) Act, 1991, w.e.f. 1-10-1991. Earlier sub-section (11) was omitted by
the Finance Act, 1985, w.e.f. 1-4-1986. Original sub-section, as inserted by
the Finance Act, 1974, w.e.f. 1-4-1974, read as under :
“(11) Where in the assessment for any year, the deduction under section 80N in respect of any income, being the whole or any part of income by way of dividends 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 is received in, or brought into, India in the manner aforesaid, the Income-tax Officer shall amend the order of assessment so as to allow deduction under section 80N 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 date on which such income is so received in, or brought into, India.”
[R290]Inserted by the Finance
(No. 2) Act, 1991, w.e.f. 1-10-1991. Earlier sub-section (12) was omitted by
the Finance Act, 1987, w.e.f. 1-4-1988. Original sub-section, as inserted by
the Finance Act, 1974, w.e.f. 1-4-1974, stood as under :
“(12) Where in the assessment for any year, 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 is received in, or brought into, India in the manner aforesaid, the Income-tax 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 date on which such income is so received in, or brought into, India.”
[R291]Inserted by the Finance Act, 1999, w.e.f. 1-6-1999. Earlier original sub-section (13) was inserted by the Finance Act, 1975, w.e.f. 1-4-1975 and later on omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989
[R292]Sub-sections (14) and (15) inserted by the Finance Act 2002, w.e.f. 1-6-2002.
[R293]Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974.
[R294]“(including annuity deposit referred to in Chapter XXII-A)” omitted by the Finance Act, 1966, w.e.f. 1-4-1967. Originally, the said expression was inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[R295]Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988
[R296]For the meaning of the word “shall”
[R297]See rule 15 and Form No. 7 for notice of demand. See rule 38 and Form No. 28 for notice of demand of advance tax
[R298]Substituted for “or sub-section (1) of section 74” by the Finance Act, 1974, w.e.f. 1-4-1975.
[R299]Inserted
by the Finance Act, 1987, w.e.f. 1-4-1988.
[R300]Substituted
for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988.
[R301]Substituted for “or sub-section (1) of section 74” by the Finance Act, 1974, w.e.f. 1-4-1975.
[R302]Inserted
by the Finance Act, 1987, w.e.f. 1-4-1988.
[R303]Substituted for “Whenever a registered firm is assessed” by the Finance Act, 1992, w.e.f. 1-4-1993. Earlier the expression was amended by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 and by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date