PROCEDURE FOR ASSESSMENT
139. [(1) Every person,—
(a) being a company [or a firm]; or
(b) being a person other than a company [or
a firm], if his total income or the total income of any other person in
respect of which he is assessable under this Act during the previous year
exceeded the maximum amount which is not chargeable to income-tax,
shall, on or before the due date, furnish a return
of his income or the income of such other person during the previous year, in
the prescribed form 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 notification in the Official Gazette,
and who [during the previous year incurs an expenditure of fifty thousand
rupees or more towards consumption of electricity or] at any time during
the previous year fulfils any one of the following conditions, namely :—
(i) is in occupation of an
immovable property exceeding a specified floor area, whether by way of
ownership, tenancy or otherwise, as may be specified by the Board in this
behalf; or
(ii) is the owner or the lessee of a motor
vehicle other than a two-wheeled motor vehicle, whether having any detachable
side car having extra wheel attached to such two-wheeled motor vehicle or not;
or
(iii) [***]
(iv) has incurred expenditure for himself
or any other person on travel to any foreign country; or
(v) is the holder of a credit card, not
being an “add-on” card, issued by any bank or institution; or
(vi) is a member of a club where entrance fee
charged is twenty-five thousand rupees or more,
shall furnish a return, of his income [during
any previous year ending before the 1st day of April, 2005], 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:
Provided also that every company [or a firm] shall furnish on or
before the due date the return in respect of its income or loss in every
previous year:
[Provided
also that every person, being an individual or a Hindu undivided family
or an association of persons or a body of individuals, whether incorporated or
not, or an artificial juridical person, if his total income or the total income
of any other person in respect of which he is assessable under this Act during
the previous year, without giving effect to the provisions of section 10A or section
10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not
chargeable to income-tax, shall, on or before the due date, furnish a return of
his income or the income of such other person during the previous year, in the
prescribed form and verified in the prescribed manner and setting forth such
other particulars as may be prescribed.]
Explanation 1.—For the purposes of this sub-section, the
expression “motor vehicle” shall have the meaning assigned to it in clause (28)
of section 2 of the Motor Vehicles Act, 1988 (59 of 1988).
Explanation 2.—In this sub-section, “due date” means,—
(a) where the assessee is—
(i) a company; or
(ii) a person (other than a company) whose
accounts are required to be audited under this Act or under any other law for
the time being in force; or
(iii) a working partner of a firm whose accounts
are required to be audited under this Act or under any other law for the time
being in force,
the
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 neighbouring
countries or to such places of pilgrimage as the Board may specify in this
behalf by notification in the Official Gazette.]
[(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 Gazette, 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.]
[***]]
[(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 [***] has sustained a loss in any previous year under the head
“Profits and gains of business or profession” or under the head “Capital gains”
and claims that the loss or any part thereof should be carried forward under
sub-section (1) of section 72, or sub-section (2) of section 73, or sub-section
(1) [or sub-section (3)] of section 74, [or sub-section (3) of section 74A], he
may furnish, within the time allowed under sub-section (1) [***], a return of
loss in the prescribed form and verified in the prescribed manner and
containing such other particulars as may be prescribed, and all the provisions
of this Act shall apply as if it were a return under sub-section (1).
[(4) Any person who has not furnished a return
within the time allowed to him under sub-section (1), or within the time
allowed under a notice issued under sub-section (1) of section 142, may furnish
the return for any previous year at any time before the expiry of one year from
the end of the relevant assessment year or before the completion of the
assessment, whichever is earlier :
Provided that where the return relates to a previous
year relevant to the assessment year commencing on the 1st day of April, 1988,
or any earlier assessment year, the reference to one year aforesaid shall be
construed as a reference to two years from the end of the relevant assessment
year.]
[ [(4A) Every person in receipt of income
derived from property held under trust or other legal obligation wholly for
charitable or religious purposes or in part only for such purposes, or of
income being voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2, shall, if
the total income in respect of which he is assessable as a representative assessee (the total income for this purpose being computed
under this Act without giving effect to the provisions of sections 11 and 12) exceeds
the maximum amount which is not chargeable to income-tax, furnish a return of
such income of the previous year in the prescribed 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).]]
[(4B) The chief executive officer (whether
such chief executive officer is known as Secretary or by any other
designation) of every political party shall, if the total income in respect of
which the political party is assessable (the total income for this purpose
being computed under this Act without giving effect to the provisions of section
13A) exceeds the maximum amount which is not chargeable to income-tax, furnish
a return of such income of the previous year in the prescribed 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).]
[(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 (iiiad)
or] sub-clause (vi) or any hospital or other medical
institution referred to in [sub-clause (iiiae)
or] sub-clause (via) of clause (23C) of section 10;
(f) trade union referred to in sub-clause (a) or association referred to in sub-clause (b) of clause (24) of section 10,
shall, if the total income in respect of which
such 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 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).]
[(4D)
Every university, college or other institution referred to in clause (ii)
and clause (iii) of sub-section (1) of section 35, which is not required
to furnish return of income or loss under any other provision of this section,
shall furnish the return in respect of its income or loss in every previous
year and all the provisions of this Act shall, so far as may be, apply as if it
were a return required to be furnished under sub-section (1).]
[(5) If any person, having furnished a return
under sub-section (1), or in pursuance of a notice issued under sub-section (1)
of section 142, discovers any omission or any wrong statement therein, he may
furnish a revised return at any time before the expiry of one year from the end
of the relevant assessment year or before the completion of the assessment,
whichever is earlier :
Provided that where the return relates to the previous
year relevant to the assessment year commencing on the 1st day of April, 1988,
or any earlier assessment year, the reference to one year aforesaid shall be
construed as a reference to two years from the end of the relevant assessment
year.]
[(6) The prescribed form of the returns
referred to [in sub-sections (1) and (3) of this section, and in clause (i) of sub-section (1) of section 142] shall, in such
cases as may be prescribed, require the assessee to
furnish the particulars of income exempt from tax, assets of the prescribed
nature [, value and belonging to him, his bank account and credit card held by
him], expenditure exceeding the prescribed limits incurred by him under
prescribed heads and such other outgoings as may be prescribed.
(6A) Without
prejudice to the provisions of sub-section (6), the prescribed form of the
returns referred to [in [***] this section, and in clause (i)
of sub-section (1) of section 142] shall, in the case of an assessee
engaged in any business or profession, also require him to furnish [the report
of any audit [referred to in section 44AB, or, where the report has been
furnished prior to the furnishing of the return, a copy of such report together
with proof of furnishing the report], the] particulars of the location and
style of the principal place where he carries on the business or profession and
all the branches thereof, the names and addresses of his partners, if any, in
such business or profession and, if he is a member of an association or body of
individuals, the names of the other members of the association or the body of
individuals and the extent of the share of the assessee
and the shares of all such partners or the members, as the case may be, in the
profits of the business or profession and any branches thereof.]
(7) [***]
[ (8)(a) [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 [Assessing]
Officer has extended the date for furnishing the return under sub-section (1)
or sub-section (2)], the assessee shall be liable to
pay simple interest at [fifteen] per cent per annum, reckoned from the day
immediately following the specified date to the date of the furnishing of the
return or, where no return has been furnished, the date of completion of the
assessment under section 144, on the amount of the tax payable on the total income
as determined on regular assessment, as reduced by the advance tax, if any,
paid, and any tax deducted at source :
Provided that the [Assessing] Officer may, in such
cases and under such circumstances as may be prescribed, reduce or waive the
interest payable by any assessee under this
sub-section.
Explanation
1.—For
the purposes of this sub-section, “specified date”, in relation to a return for
an assessment year, means,—
(a) in the case of every assessee whose total income, or the total income of any
person in respect of which he is assessable under this Act, includes any
income from business or profession, the date of the expiry of four months from
the end of the previous year or where there is more than one previous year,
from the end of the previous year which expired last before the commencement of
the assessment year or the 30th day of June of the assessment year, whichever
is later;
(b) in
the case of every other assessee, the 30th day of
June of the assessment year.]
[Explanation 2.—Where, in relation to
an assessment year, an assessment is made for the first time under section 147,
the assessment so made shall be regarded as a regular assessment for the
purposes of this sub-section.]
[(b) Where as a result of an order
under section 147 or section 154 or section 155 or section 250 or section 254
or section 260 or section 262 or section 263 or section 264 [or an order of the
Settlement Commission under sub-section (4) of section 245D], the amount of tax
on which interest was payable under this sub-section has been increased or
reduced, as the case may be, the interest shall be increased or reduced
accordingly, and—
(i) in a case where the interest is increased, the [Assessing] Officer
shall serve on the assessee, a notice of demand in
the prescribed form specifying the sum payable, and such notice of demand shall
be deemed to be a notice under section 156 and the provisions of this Act shall
apply accordingly;
(ii) in
a case where the interest is reduced, the excess interest paid, if any, shall
be refunded.]]
[(c) The provisions of this sub-section
shall apply in respect of the assessment for the assessment year commencing on
the 1st day of April, 1988, or any earlier assessment year, and references
therein to the other provisions of this Act shall be construed as references
to the said provisions as they were applicable to the relevant assessment
year.]
[(9) Where the [Assessing] Officer considers
that the return of income furnished by the assessee
is defective, he may intimate the defect to the assessee
and give him an opportunity to rectify the defect within a period of fifteen
days from the date of such intimation or within such further period which, on
an application made in this behalf, the [Assessing] Officer may, in his
discretion, allow; and if the defect is not rectified within the said period of
fifteen days or, as the case may be, the further period so allowed, then,
notwithstanding anything contained in any other provision of this Act, the return
shall be treated as an invalid return and the provisions of this Act shall
apply as if the assessee had failed to furnish the
return :
Provided that where the assessee
rectifies the defect after the expiry of the said period of fifteen days or the
further period allowed, but before the assessment is made, the [Assessing]
Officer may condone the delay and treat the return as a valid return.
Explanation.—For the purposes of this sub-section, a
return of income shall be regarded as defective unless all the following
conditions are fulfilled, namely :—
(a) the annexures, statements and columns in the return of income
relating to computation of income chargeable under each head of income,
computation of gross total income and total income have been duly filled in;
(b) the
return is accompanied by a statement showing the computation of the tax payable
on the basis of the return;
[(bb) the return is
accompanied by the report of the audit referred to in section 44AB, or, where
the report has been furnished prior to the furnishing of the return, by a copy
of such report together with proof of furnishing the report;]
(c) the return is
accompanied by proof of—
(i) the tax, if any,
claimed to have been deducted [or collected] at source [before
the 1st day of
April, [2008]] and the advance tax and tax on self-assessment, if any,
claimed to have been paid :
[Provided that where the return is not
accompanied by proof of the tax, if any, claimed to have been deducted [or
collected] 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;
The following clause (a) shall be substituted for the
existing clause (a) of proviso to sub-clause (i) of
clause (c) in the Explanation to sub-section (9) of section 139 by the Finance
Act, 2006, w.e.f. 1-4-2007 :
(a) a certificate for tax
deducted or collected was not furnished under section 203 or section 206C to
the person furnishing his return of income;
(b) such
certificate is produced within a period of two years specified under
sub-section (14) of section 155;]
(ii) the amount of
compulsory deposit, if any, claimed to have been made under
the Compulsory Deposit
Scheme (Income-tax Payers) Act,
1974 (38 of 1974);
(d) where
regular books of account are maintained by the assessee,
the return is accompanied by copies of—
(i) manufacturing
account, trading account, profit and loss account or, as the case may be, income
and expenditure account or any other similar account and balance sheet;
(ii) in the case of a proprietary business or
profession, the personal account of the proprietor; in the case of a firm,
association of persons or body of individuals, personal accounts of the
partners or members; and in the case of a partner or member of a firm,
association of persons or body of individuals, also his personal account in the
firm, association of persons or body of individuals;
(e) where the accounts of
the assessee have been audited, the return is
accompanied by copies of the audited profit and loss account and balance sheet
and the auditor’s report [and, where an audit of cost accounts of the assessee has been conducted, under section 233B of the
Companies Act, 1956 (1 of 1956), also the report under that section];
(f) where regular books
of account are not maintained by the assessee, the
return is accompanied by a statement indicating the amounts of turnover or, as
the case may be, gross receipts, gross profit, expenses and net profit of the
business or profession and the basis on which such amounts have been computed,
and also disclosing the amounts of total sundry debtors, sundry creditors,
stock-in-trade and cash balance as at the end of the previous year :]
[Provided
that the Board may, by rules made by it,—
(a) dispense, for a class or classes of persons, with any of the
conditions specified in clauses (a)
to (f); or
(b) include
any of the conditions specified in clauses (a)
to (f) of this Explanation in the form of return prescribed under
sub-section (1) or sub-section (6) of this section.]
(10)
[Omitted by the Finance (No.
2) Act, 1991, w.e.f. 1-4-1991.]
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 [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; or
(iv) being
an employer, who is required to furnish a return of fringe benefits under section
115WD,]
and who has not
been allotted a permanent account number shall, within such time, as may be
prescribed, apply to the Assessing Officer for the allotment of a permanent
account number.
[(1A) Notwithstanding anything contained in
sub-section (1), the Central Government may, by notification in the Official
Gazette, specify, any class or classes of persons by whom tax is payable under
this Act or any tax or duty is payable under any other law for the time being
in force including importers and exporters whether any tax is payable by them
or not and such persons shall, within such time as mentioned in that
notification, apply to the Assessing Officer for the allotment of a permanent
account number.]
[(1B) Notwithstanding anything contained in
sub-section (1), the Central Government may, for the purpose of collecting any
information which may be useful for or relevant to the purposes of this Act, by
notification in the Official Gazette, specify, any class or classes of persons
who shall apply to the Assessing Officer for the allotment of the permanent
account number and such persons shall, within such time as mentioned in that
notification, apply to the Assessing Officer for the allotment of a permanent
account number.]
[(2) The Assessing Officer, having regard to
the nature of the transactions as may be prescribed, may also allot a permanent
account number, to any other person (whether any tax is payable by him or not),
in the manner and in accordance with the procedure as may be prescribed.]
(3) Any
person, not falling under sub-section (1) or sub-section (2), may apply to the
Assessing Officer for the allotment of a permanent account number and,
thereupon, the Assessing Officer shall allot a permanent account number to such
person forthwith.
(4) For the
purpose of allotment of permanent account numbers under the new series, the
Board may, by notification in the Official Gazette, specify the date from which
the persons referred to in sub-sections (1) and (2) and other persons who have
been allotted permanent account numbers and residing in a place to be specified
in such notification, shall, within such time as may be specified, apply to the
Assessing Officer for the allotment of a permanent account number under the new
series and upon allotment of such permanent account number to a person, the
permanent account number, if any, allotted to him earlier shall cease to have
effect :
Provided that the persons to whom permanent account
number under the new series has already been allotted shall not apply for such
number again.
(5) Every
person shall—
(a) quote such
number in all his returns to, or correspondence with, any income-tax authority;
(b) quote such
number in all challans for the payment of any sum due
under this Act;
(c) quote such
number in all documents pertaining to such transactions as may be prescribedby 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:
[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.
[(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
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;
[(iv) in
all quarterly statements prepared and delivered or caused to be delivered in
accordance with the provisions of sub-section (3) of section 200:]
Provided that the Central Government may, by notification in the Official
Gazette, specify different dates from which the provisions of this sub-section
shall apply in respect of any class or classes of persons:
Provided further that nothing contained in sub-sections (5A)
and (5B) shall apply in case of a person whose total income is not chargeable
to income-tax or who is not required to obtain permanent account number under
any provision of this Act if such person furnishes to the person responsible
for deducting tax, a declaration referred to in section 197A in the form and manner prescribed thereunder to the effect that the tax on his estimated
total income of the previous year in which such income is to be included in
computing his total income will be nil.
(5C) Every buyer [or
licensee or lessee] 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 [or licensee or lessee] 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;]
[(iii) in
all quarterly statements prepared and delivered or caused to be delivered in
accordance with the provisions of sub-section (3) of section 206C.]
(6) Every
person receiving any document relating to a transaction prescribed under clause
(c) of sub-section (5) shall ensure that the Permanent Account Number [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.
[Explanation.—For the removal of doubts, it
is hereby declared that any person, who has been allotted a permanent account
number under any clause other than clause (iv) of sub-section (1), shall
not be required to obtain another permanent account number and the permanent
account number already allotted to him shall be deemed to be the permanent
account number in relation to fringe benefit tax.]
(8) The Board may make 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 [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;
[(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);
(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;]
[(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.]
[Scheme for submission of returns through Tax Return Preparers.
139B. (1) For the purpose of enabling any specified
class or classes of persons in preparing and furnishing returns of income, the
Board may, without prejudice to the provisions of section 139, frame a Scheme, by notification in the
Official Gazette, providing that such persons may furnish their returns of
income through a Tax Return Preparer authorised to
act as such under the Scheme.
(2) Every Tax Return Preparer shall assist the
persons furnishing the return of income in such manner as may be specified in the
Scheme framed under this section and affix his signature on such return.
(3) For the purposes of this section,—
(a) “Tax
Return Preparer” means any individual, [not being a person referred to in
clause (ii) or clause (iii) or clause (iv) of sub-section
(2) of section 288
or an employee of the “specified class or classes of persons”], who has been authorised to act as a Tax Return Preparer under the Scheme
framed under this section;
(b) “specified
class or classes of persons” means any person, other than a company or a
person, whose accounts are required to be audited under section
44AB or under any other law for
the time being in force, who is required to furnish a return of income under
this Act.
(4) The Scheme framed by the Board under this
section may provide for the following, namely:—
(a) the manner in which and the period for which the Tax Return
Preparers shall be authorised under sub-section (3);
(b) the educational and other qualifications to be possessed,
and the training and other conditions required to be fulfilled, by a person to
act as a Tax Return Preparer;
(c) the code of conduct for the Tax Return Preparers;
(d) the duties and obligations of the Tax Return Preparers;
(e) the circumstances under which the authorisation
given to a Tax Return Preparer may be withdrawn;
(f) any other matter which is required to be, or may be,
specified by the Scheme for the purposes of this section.
(5) The Scheme framed by the Board under this
section shall be laid, as soon as may be after it is framed, before each House
of Parliament, while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in
the scheme or both Houses agree that the Scheme should not be framed, the
Scheme shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously
done under that Scheme.]
140. The
return under [section 115WD or] section
139 shall be signed and verified—
[(a) in
the case of an individual,—
(i) by the individual
himself;
(ii) where he is absent from
(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;
[(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 :
[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;]
[(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.
140A. [(1) Where any tax is payable on the basis of
any return required to be furnished under [ [section 115WD or section 115WH or] section 139 or section
142 [or section 148 or [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,]
[the assessee shall be liable to pay such tax
together with interest payable under any provision of this Act for any delay in
furnishing the return or any default or delay in payment of advance tax, before
furnishing the return and the return shall be accompanied by proof of payment
of such tax and interest.]
[Explanation.—Where
the amount paid by the assessee under this
sub-section falls short of the aggregate of the tax and interest as aforesaid,
the amount so paid shall first be adjusted towards the interest payable as
aforesaid and the balance, if any, shall be adjusted towards the tax payable.]
[(1A)
For the purposes of sub-section (1), interest
payable,—
(i) under section 234A shall be computed on the amount of the tax on
the total income as declared in the return as reduced by the advance tax, if
any, paid and any tax deducted or collected at source;
The following clause (i) shall be substituted for the existing clause (i) of sub-section (1A) of section 140A by the Finance
Act, 2006, w.e.f.
1-4-2007 :
(i) under section
234A shall be computed on the
amount of the tax on the total income as declared in the return as reduced by
the amount of,—
(a) advance tax, if any, paid;
(b) any tax deducted or collected
at source;
(c) any relief of tax or deduction
of tax claimed under section 90 or section 91 on
account of tax paid in a country outside India;
(d) any relief of tax claimed
under section 90A
on account of tax paid in any specified territory outside India referred to in
that section; and
(e) any
tax credit claimed to be set off in accordance with the provisions of section
115JAA;
(ii) under section 115WK shall be computed on the amount of tax on the
value of the fringe benefits as declared in the return as reduced by the
advance tax, paid, if any.]
[(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.]
The following Explanation shall be
substituted for the existing Explanation to sub-section (1B) of section
140A by the Finance Act, 2006, w.e.f. 1-4-2007 :
Explanation.—For the purposes of this
sub-section, “assessed tax” means the tax on the total income as declared in
the return as reduced by the amount of,—
(i) tax deducted or collected at
source, in accordance with the provisions of Chapter XVII, on any income which
is subject to such deduction or collection and which is taken into account in
computing such total income;
(ii) any
relief of tax or deduction of tax claimed under section 90 or section 91 on account of tax paid in a country outside
India;
(iii) any
relief of tax claimed under section 90A on account of tax paid in any specified
territory outside India referred to in that section; and
(iv) any tax credit claimed to be set off in accordance with the
provisions of section 115JAA.
(2) After a
regular assessment under [section 115WE or section 115WF
or] section 143 or section 144 [or an assessment under [section 153A or] section 158BC] has
been made, any amount paid under sub-section (1) shall be deemed to have been
paid towards such regular assessment [or assessment, as the case may be].
[(3) If any assessee
fails to pay the whole or any part of such tax or interest or both in
accordance with the provisions of sub-section (1), he shall, without prejudice
to any other consequences which he may incur, be deemed to be an assessee in default in respect of the tax or interest or
both remaining unpaid, and all the provisions of this Act shall apply
accordingly.]
[(4) The provisions of this section as they
stood immediately before their amendment by the Direct Tax Laws (Amendment)
Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier
assessment year and references in this section to the other provisions of this
Act shall be construed as references to those provisions as for the time being
in force and applicable to the relevant assessment year.]
141. [Omitted by the Taxation Laws (Amendment)
Act, 1970, w.e.f. 1-4-1971.]
Provisional assessment for refund.
141A. [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.]
142. (1) For the purpose of making an assessment under this Act, the [Assessing]
Officer may serve on any person who has made a return [under section
115WD or section 139 [or in whose case the time allowed under sub-section (1) of section
139] for furnishing the
return has expired] a notice requiring him, on a date to be therein specified,—
[(i) where such person has not made a return [within
the time allowed under sub-section (1) of section 139] [or before the end of the relevant
assessment year], to furnish a return of his income or the income of any
other person in respect of which he is assessable under this Act, in the
prescribed form and verified in the prescribed manner and setting forth such
other particulars as may be prescribed, or :]
[Provided that where any notice has
been served under this sub-section for the purposes of this clause after the
end of the relevant assessment year commencing on or after the 1st day of
April, 1990 to a person who has not made a return within the time allowed under
sub-section (1) of section 139 or before the end of the relevant assessment year, any such notice
issued to him shall be deemed to have been served in accordance with the
provisions of this sub-section,]
[(ii)] to
produce, or cause to be produced, such accounts or documents as the [Assessing]
Officer may require, or
[(iii)] to
furnish in writing and verified in the 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 [Assessing] Officer may require :
Provided that—
(a) the previous
approval of the [Joint Commissioner] shall be obtained before requiring the assessee to furnish a statement of all assets and
liabilities not included in the accounts ;
(b) the [Assessing]
Officer shall not require the production of any accounts relating to a period
more than three years prior to the previous year.
(2) For the
purpose of obtaining full information in respect of the income or loss of any
person, the [Assessing] Officer may make such inquiry as he considers
necessary.
[(2A) If, at any stage of the proceedings
before him, the [Assessing] Officer, having regard to the nature and complexity
of the accounts of the assessee and the interests of
the revenue, is of the opinion that it is necessary so to do, he may, with the
previous approval of the [Chief Commissioner or Commissioner], direct the assessee to get the accounts audited by an accountant, as
defined in the Explanation below sub-section (2) of section 288, nominated by the [Chief Commissioner or
Commissioner] in this behalf and to furnish a report of such audit in the
prescribed form duly signed and verified by such accountant and setting forth
such particulars as may be prescribed and such other particulars as the [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 [Assessing] Officer within such period as may be specified by the [Assessing]
Officer :
Provided that the [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 [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) [or any audit under sub-section (2A)] and proposed to be utilised for the purposes of the assessment.
[(4) The provisions of this section as they
stood immediately before their amendment by the Direct Tax Laws (Amendment)
Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier
assessment year and references in this section to the other provisions of this
Act shall be construed as references to those provisions as for the time being
in force and applicable to the relevant assessment year.]
[Estimate
by Valuation Officer in certain cases.
142A. (1) For the purposes of making an assessment
or reassessment under this Act, where an estimate of the value of any
investment referred to in section 69 or section 69B or the
value of any bullion, jewellery or other valuable
article referred to in section 69A
or section 69B is required to be
made, the Assessing Officer may require the Valuation Officer to make an
estimate of such value and report the same to him.
(2) The Valuation Officer to whom a reference
is made under sub-section (1) shall, for the purposes of dealing with such
reference, have all the powers that he has under section 38A of the Wealth-tax
Act, 1957 (27 of 1957).
(3) On receipt of the report from the
Valuation Officer, the Assessing Officer may, after giving the assessee an opportunity of being heard, take into account
such report in making such assessment or reassessment:
Provided that nothing
contained in this section shall apply in respect of an assessment made on or
before the 30th day of September, 2004, and where such assessment has become
final and conclusive on or before that date, except in cases where a
reassessment is required to be made in accordance with the provisions of section
153A.
Explanation.—In this section, “Valuation Officer” has the
same meaning as in clause (r) of section 2 of the Wealth-tax Act, 1957
(27 of 1957).]
143. [(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), an intimation shall be sent to the assessee
specifying the sum so payable, and such intimation shall be deemed to be a
notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly; and
(ii) if any refund is due on the basis of
such return, it shall be granted to the assessee and
an intimation to this effect shall be sent to the assessee
:
Provided that except as otherwise provided in this sub-section, the acknowledgement
of the return shall be deemed to be an intimation under this sub-section where
either no sum is payable by the assessee or no refund
is due to him :
Provided further that no intimation under this sub-section
shall be sent after the expiry of [one year from the end of the financial year
in which the return is made :]
[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) [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]
(1B) [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]
[(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:
[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 [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.]
[(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:]
[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 :]
[Provided further that where the Assessing Officer is satisfied
that the activities of the university, college or other institution referred to
in clause (ii) and
clause (iii) of sub-section (1) of section 35 are not being
carried out in accordance with all or any of the conditions subject to which
such university, college or other institution was approved, he may, after
giving a reasonable opportunity of showing cause against the proposed
withdrawal to the concerned university, college or other institution, recommend
to the Central Government to withdraw the approval and that Government may by
order, withdraw the approval and forward a copy of the order to the concerned
university, college or other institution and the Assessing Officer.]
[(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) [Omitted by the Finance Act, 1999, w.e.f.
1-6-1999.]]
[* * *]
144. [(1)]
If any person—
(a) fails to make
the return required [under sub-section (1) of section 139] and has not made a
return or a revised return under sub-section (4) or sub-section (5) of that
section, or
(b) fails to comply
with all the terms of a notice issued under sub-section (1) of section 142 [or fails to comply with a direction issued
under sub-section (2A) of that section], or
(c) having made a
return, fails to comply with all the terms of a notice issued under sub-section
(2) of section 143,
the [Assessing]
Officer, after taking into account all relevant material which the [Assessing]
Officer has gathered, [shall, after giving the assessee
an opportunity of being heard, make the assessment] of the total income or loss
to the best of his judgment and determine the sum payable by the assessee [* * *] on the basis of such assessment :
[Provided that such opportunity shall
be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified
in the notice, why the assessment should not be completed to the best of his
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.]
[(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.]
[Power of [Joint Commissioner] to
issue directions in certain cases.
144A. [* * *] A [Joint Commissioner] may, on his own
motion or on a reference being made to him by the [Assessing] Officer or on the
application of an assessee, call for and examine the
record of any proceeding in which an assessment is pending and, if he considers
that, having regard to the nature of the case or the amount involved or for any
other reason, it is necessary or expedient so to do, he may issue such
directions as he thinks fit for the guidance of the [Assessing] Officer to
enable him to complete the assessment and such directions shall be binding on
the [Assessing] Officer :
Provided that no directions which are prejudicial to
the assessee shall be issued before an opportunity is
given to the assessee to be heard.
Explanation.—For the purposes of this [section] no
direction as to the lines on which an investigation connected with the
assessment should be made, shall be deemed to be a direction prejudicial to the
assessee.
[* * *]]
Reference to Deputy Commissioner in certain
cases.
144B. [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.]
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 regularly employed by the assessee.
(2) The
Central Government may notify in the Official Gazette from time to time
accounting standards to be followed by any class of assessees
or in respect of any class of income.
(3) Where
the Assessing Officer is not satisfied about the correctness or completeness of
the accounts of the assessee, or where the method of
accounting provided in sub-section (1) or accounting standards as notified
under sub-section (2), have not been regularly
followed by the assessee, the Assessing Officer may
make an assessment in the manner provided in section 144.]
[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. [Omitted by the Direct Tax Laws (Amendment)
Act, 1987, w.e.f. 1-4-1989.]
147. If
the [Assessing] Officer [has reason to believe] that any income chargeable to
tax has escaped assessment for any assessment year, he may, subject to the
provisions of sections 148 to 153, assess or reassess such income and also any
other income chargeable to tax which has escaped assessment and which comes to
his notice subsequently in the course of the proceedings under this section, or
recompute the loss or the depreciation allowance or
any other allowance, as the case may be, for the assessment year concerned
(hereafter in this section and in sections 148 to 153 referred to as the
relevant assessment year) :
Provided that where an assessment under sub-section
(3) of section 143 or this section has been made for the relevant assessment
year, no action shall be taken under this section after the expiry of four
years from the end of the relevant assessment year, unless any income
chargeable to tax has escaped assessment for such assessment year by reason of
the failure on the part of the assessee to make a
return under section 139 or in response to a notice issued under sub-section
(1) of section 142 or section 148 or to disclose fully and truly all material
facts necessary for his assessment, for that assessment year.
Explanation
1.—Production before the
Assessing Officer of account books or other evidence from which material
evidence could with due diligence have been discovered by the Assessing Officer
will not necessarily amount to disclosure within the meaning of the foregoing
proviso.
Explanation
2.—For the purposes of this
section, the following shall also be deemed to be cases where income
chargeable to tax has escaped assessment, namely :—
(a) where no return of income has been
furnished by the assessee although his total income
or the total income of any other person in respect of which he is assessable
under this Act during the previous year exceeded the maximum amount which is
not chargeable to income-tax ;
(b) where a return of income has been
furnished by the assessee but no assessment has been
made and it is noticed by the Assessing Officer that the assessee
has understated the income or has claimed excessive loss, deduction, allowance
or relief in the return ;
(c) where an assessment has been made, but—
(i) income
chargeable to tax has been underassessed ; 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.]
[Issue of
notice where income has escaped assessment.
148. [(1)]
Before making the assessment, reassessment or recomputation
under section 147, the Assessing Officer shall serve on the assessee
a notice requiring him to furnish within such period, [* * *] as may be
specified in the notice, a return of his income or the income of any other
person in respect of which he is assessable under this Act during the previous
year corresponding to the relevant assessment year, in the prescribed form and
verified in the prescribed manner and setting forth such other particulars as
may be pres-cribed; 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 :]
[Provided that in a case—
(a) where
a return has been furnished during the period commencing on the 1st day of
October, 1991 and ending on the 30th day of September, 2005 in response to a
notice served under this section, and
(b) subsequently
a notice has been served under sub-section (2) of section 143 after the expiry
of twelve months specified in the proviso to sub-section (2) of section 143, as
it stood immediately before the amendment of said sub-section by the Finance
Act, 2002 (20 of 2002) but before the expiry of the time limit for making the
assessment, re-assessment or re-computation as specified in sub-section (2) of section
153, every such notice referred to in this clause shall
be deemed to be a valid notice:
Provided further that in a case—
(a) where
a return has been furnished during the period commencing on the 1st day of
October, 1991 and ending on the 30th day of September, 2005, in response to a
notice served under this section, and
(b) subsequently
a notice has been served under clause (ii) of sub-section (2) of section
143 after the expiry of twelve months specified in the proviso to clause (ii)
of sub-section (2) of section 143, but before the expiry of the time limit for
making the assessment, re-assessment or re-computation as specified in
sub-section (2) of section 153, every such notice referred to in this clause
shall be deemed to be a valid notice.]
[Explanation.—For the removal of doubts, it
is hereby declared that nothing contained in the first proviso or the second
proviso shall apply to any return which has been furnished on or after the 1st
day of October, 2005 in response to a notice served under this section.]
[(2) The Assessing Officer shall, before
issuing any notice under this section, record his reasons for doing so.]
149. [(1) No notice under section 148 shall be
issued for the relevant assessment year,—
[(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 more for that year.]
Explanation.—In determining income chargeable to tax which
has escaped assessment for the purposes of this sub-section, the provisions of Explanation
2 of section 147 shall apply as they apply for the purposes of that
section.]
(2) The
provisions of sub-section (1) as to the issue of notice shall be subject to the
provisions of section 151.
(3) If the
person on whom a notice under section 148 is to be served is a person treated
as the agent of a non-resident under section 163 and the assessment,
reassessment or recomputation to be made in pursuance
of the notice is to be made on him as the agent of such non-resident, the
notice shall not be issued after the expiry of a period of two years from the
end of the relevant assessment year.
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 [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.
[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 [by an Assessing
Officer, who is below the rank of Assistant Commissioner [or Deputy
Commissioner], unless the [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 [Joint]
Commissioner, after the expiry of four years from the end of the relevant
assessment year, unless the [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 [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. [(1) No order of assessment shall be made
under section 143 or section 144 at any time after the expiry of—
(a) two years from the end of the assessment
year in which the income was first assessable ; or
(b) one year from the end of the financial year
in which a return or a revised return relating to the assessment year
commencing on the 1st day of April, 1988, or any earlier assessment year, is
filed under sub-section (4) or sub-section (5) of section 139,whichever is
later :]
[Provided that in case the assessment year in which the income was first
assessable is the assessment year commencing on the 1st day of April, 2004 or
any subsequent assessment year, the provisions of clause (a) shall have
effect as if for the words “two years”, the words “twenty-one months” had been
substituted.]
[(1A) No order of assessment shall be made
under section 115WE or section 115WF at any time after the expiry of [twenty-one
months] from the end of the assessment year in which the fringe
benefits were first assessable.
(1B) No order of assessment or
reassessment shall be made under section 115WG after the expiry of [nine months] from the end of the financial year in which
the notice under section 115WH was served.]
[(2) No order of assessment, reassessment or recomputation shall be made under section 147 after the
expiry of [one year] from the end of the financial year in which the notice
under section 148 was served :
[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 :]
[Provided
further that where the
notice under section 148 was served on or after the 1st day of April, 2005, the
provisions of this sub-section shall have effect as if for the words “one
year”, the words “nine months” had been substituted.]
[(2A) Notwithstanding anything contained in
sub-sections (1) [, (1A), (1B)] and (2), in relation to
the assessment year commencing on the 1st day of April, 1971, and any
subsequent assessment year, an order of fresh assessment in pursuance of an
order under section 250 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 :]
[Provided
further that where the
order under section 254 is received by the Chief Commissioner or Commissioner
or, as the case may be, the order under section 263 or section 264 is passed by
the Commissioner on or after the 1st day of April, 2005, the provisions of this
sub-section shall have effect as if for the words “one year”, the words “nine
months” had been substituted.]
(3) The
provisions of sub-sections (1) [, (1A), (1B)] and (2)
shall not apply to the following classes of assessments, reassessments and recomputations which may, [subject to the provisions of
sub-section (2A),] be completed at any time—
(i) [***]
(ii) where the assessment, reassessment or recomputation is made on the assessee
or any person in consequence of or to give effect to any finding or direction contained in an order under section 250, 254, 260,
262, 263, or 264 [or in an order of any court in a proceeding otherwise than by
way of appeal or reference under this Act] ;
(iii) where, in the
case of a firm, an assessment is made on a partner of the firm in consequence
of an assessment made on the firm under section 147.
[Explanation 1.—In
computing the period of limitation for the purposes of this section—
(i) the time taken in
reopening the whole or any part of the proceeding or in giving an opportunity
to the assessee to be re-heard under the proviso to section
129, or
(ii) the period
during which the assessment proceeding is stayed by an order or injunction of
any court, or
[(iia) the period commencing from the date on which
the Assessing Officer intimates the Central Government or the prescribed
authority, the contravention of the provisions of clause (21) or clause
(22B) or clause (23A) or clause (23B) or sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via)
of clause (23C) of section 10, under clause (i)
of the proviso to sub-section (3) of section 143 and ending with the date on
which the copy of the order withdrawing the approval or rescinding the
notification, as the case may be, under those clauses is received by the
Assessing Officer;]
(iii) the period commencing from the date on which
the [Assessing] Officer directs the assessee to get
his accounts audited under sub-section (2A) of section 142 and ending with [the
last date on which the assessee is required to
furnish] a report of such audit under that sub-section, or
(iv) [* * *]
[(iva) the period (not exceeding sixty days)
commencing from the date on which the [Assessing] Officer received the
declaration under sub-section (1) of section 158A and ending with the date on
which the order under sub-section (3) of that section is made by him, or]
(v) in 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, [or]
[(vi) the
period commencing from the date on which an application is made before the
Authority for Advance Rulings under sub-section (1) of section 245Q and ending
with the date on which the order rejecting the application is received by the
Commissioner under sub-section (3) of section 245R, or
(vii) the period commencing from the date on which
an application is made before the Authority for Advance Rulings under
sub-section (1) of section 245Q and ending with the date on which the advance
ruling pronounced by it is received by the Commissioner under sub-section (7)
of section 245R,]
shall be
excluded :
[Provided that where immediately after
the exclusion of the aforesaid time or period, the period of limitation
referred to in sub-sections (1), [(1A), (1B),] (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 [referred
to in clause (ii) of sub-section (3)], any income is excluded from the
total income of the assessee for an assessment year,
then, an assessment of such income for another assessment year shall, for the
purposes of section 150 and this section, be deemed to be one made in
consequence of or to give effect to any finding or direction contained in the
said order.
Explanation
3.—Where, by an order [referred
to in clause (ii) of sub-section (3)], any income is excluded from the
total income of one person and held to be the income of another person, then,
an assessment of such income on such other person shall, for the purposes of section
150 and this section, be deemed to be one made in consequence of or to give
effect to any finding or direction contained in the said order, provided such
other person was given an opportunity of being heard before the said order was
passed.
[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
:
[Provided
that in case of other person referred to in section 153C, the period of
limitation for making the assessment or reassessment shall be the period as
referred to in clause (a) or clause (b) of this sub-section or one year from
the end of the financial year in which books of account or documents or assets
seized or requisitioned are handed over under section 153C to the Assessing
Officer having jurisdiction over such other person, whichever is later:]
[Provided
further that in the case
where the last of the authorisations for search under
section 132 or for requisition under section 132A was executed during the
financial year commencing on the 1st day of April, 2004 or any subsequent
financial year,—
(i) the provisions of clause (a) or clause (b) of this sub-section
shall have effect as if for the words “two years” the words “twenty-one months”
had been substituted;
(ii) the
period of limitation for making the assessment or re-assessment in case of
other person referred to in section 153C, shall be the period of twenty-one
months from the end of the financial year in which the last of the authorisations for search under section 132 or for
requisition under section 132A was executed or nine months from the end of the
financial year in which books of account or documents or assets seized or
requisitioned are handed over under section 153C to the Assessing Officer
having jurisdiction over such other person, whichever is later.]
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, [or]
[(v) the
period commencing from the date on which an application is made before the
Authority for Advance Rulings under sub-section (1) of section 245Q and ending
with the date on which the order rejecting the application is received by the
Commissioner under sub-section (3) of section 245R, or
(vi) the period commencing from the date on
which an application is made before the Authority for Advance Rulings under
sub-section (1) of section 245Q and ending with the date on which the advance
ruling pronounced by it is received by the Commissioner under sub-section (7) of
section 245R,]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. [(1)] Notwithstanding anything
contained in section 139, section 147, section 148, section 149, section 151
and section 153, where the Assessing Officer is satisfied that any money,
bullion, jewellery or other valuable article or thing
or books of account or documents seized or requisitioned belongs or belong to a
person other than the person referred to in section 153A, then the books of
account or documents or assets seized or requisitioned shall be handed over to
the Assessing Officer having jurisdiction over such other person and that
Assessing Officer shall proceed against each such other person and issue such
other person notice and assess or reassess income of such other person in
accordance with the provisions of section 153A :]
[Provided that in case of such other
person, the reference to the date of initiation of the search under section 132
or making of requisition under section 132A in the second proviso to section
153A shall be construed as reference to the date of receiving the books of
account or documents or assets seized or requisitioned by the Assessing Officer
having jurisdiction over such other person.
(2) Where books of account or
documents or assets seized or requisitioned as referred to in sub-section (1)
has or have been received by the Assessing Officer having jurisdiction over
such other person after the due date for furnishing the return of income for
the assessment year relevant to the previous year in which search is conducted
under section 132 or requisition is made under section 132A and in respect of
such assessment year—
(a) no return of
income has been furnished by such other person and no notice under sub-section
(1) of section 142 has been issued to him, or
(b) a return of
income has been furnished by such other person but no notice under sub-section
(2) of section 143 has been served and limitation of serving the notice under
sub-section (2) of section 143 has expired, or
(c) assessment or reassessment, if any, has
been made,
before the date of receiving the books of account or
documents or assets seized or requisitioned by the Assessing Officer having
jurisdiction over such other person, such Assessing Officer shall issue the
notice and assess or reassess total income of such other person of such
assessment year in the manner provided in section 153A.]
154. [(1) With a view to rectifying any mistake
apparent from the record an income-tax authority referred to in section 116
may,—
(a) amend any order passed by it under the
provisions of this Act ;
[(b) amend any intimation or deemed intimation
under sub-section (1) of section 143.]]
[(1A) Where any matter has been considered and
decided in any proceeding by way of appeal or revision relating to an order
referred to in sub-section (1), the authority passing such order may,
notwithstanding anything contained in any law for the time being in force,
amend the order under that sub-section in relation to any matter other than the
matter which has been so considered and decided.]
(2) Subject
to the other provisions of this section, the authority concerned—
(a) may make an amendment under sub-section
(1) of its own motion, and
(b) shall make such
amendment for rectifying any such mistake which has been brought to its notice
by the assessee, and where the authority concerned is
the [***] [Commissioner (Appeals)], by the [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 [Assessing] Officer shall make any refund which
may be due to such assessee.
(6) Where
any such amendment has the effect of enhancing the assessment or reducing a
refund already made, the [Assessing] Officer shall serve on the assessee a notice of demand in the prescribed form
specifying the sum payable, and such notice of demand shall be deemed to be
issued under section 156 and the provisions of this Act shall apply
accordingly.
(7) Save as
otherwise provided in section 155 or sub-section (4) of section 186 no
amendment under this section shall be made after the expiry of four years [from
the end of the financial year in which the order sought to be amended was
passed.]
[(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) [Where, in respect of any completed
assessment of a partner in a firm for the assessment year commencing on the 1st
day of April, 1992, or any earlier assessment year,] it is found—
(a) on the assessment or reassessment of the
firm, or
(b) on any reduction or enhancement made in
the income of the firm under this section, section 154, section 250, section 254, section
260, section 262, section 263 or section 264, [or]
[(c) on any order passed under sub-section (4) of section 245D on
the application made by the firm,]
that the
share of the partner in the income of the firm has not been included in the
assessment of the partner or, if included, is not correct, the [Assessing]
Officer may amend the order of assessment of the partner with a view to the
inclusion of the share in the assessment or the correction thereof, as the case
may be; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years
specified in sub-section (7) of that section being reckoned [from the end of
the financial year in which the final order was passed] in the case of the firm.
[(1A) Where in
respect of any completed assessment of a firm it is found—
(a) on the assessment or reassessment of the
firm, or
(b) on any reduction or enhancement made in
the income of the firm under this section, section 154, section 250, section 254, section
260, section 262, section 263 or section 264, or
(c) on any order
passed under sub-section (4) of section 245D on the application made by the firm,
that any
remuneration to any partner is not deductible under clause (b) of section
40, the Assessing Officer may amend the
order of assessment of the partner with a view to adjusting the income of the
partner to the extent of the amount not so deductible ; and the provisions of section
154 shall, so far as may be, apply
thereto, the period of four years specified in sub-section (7) of that section
being reckoned from the end of the financial year in which the final order was
passed in the case of the firm.]
(2) Where in
respect of any completed assessment of a member of an association of persons or
of a body of individuals it is found—
(a) on the assessment or reassessment of the
association or body, or
(b) on any reduction or enhancement made in
the income of the asso-ciation or body under this
section, section 154, section
250, section 254, section 260, section 262, section
263 or section 264, [or]
[(c) on any order passed under sub-section (4) of section
245D on the application made by the
association or body,]
that the
share of the member in the income of the association or body, as the case may
be, has not been included in the assessment of the member or, if included, is
not correct, the [Assessing] Officer may amend the order of assessment of the
member with a view to the inclusion of the share in the assessment or the
correction thereof, as the case may be ; and the provisions of section
154 shall, so far as may be, apply
thereto, the period of four years specified in sub-section (7) of that section
being reckoned [from the end of the financial year in which the final order was
passed] in the case of the association or body, as the case may be.
(3) [* * *]
(4) Where as
a result of proceedings initiated under section 147, a loss or depreciation has been recomputed
and in consequence thereof it is necessary to recompute
the total income of the assessee for the succeeding
year or years to which the loss or depreciation allowance has been carried
forward and set off under the provisions of sub-section (1) of section
72, or sub-section (2) of section
73, or sub-section (1) [or sub-section
(3)] of section 74, [or
sub-section (3) of section 74A,]
the [Assessing] Officer may proceed to recompute the
total income in respect of such year or years and make the necessary amendment
; and the provisions of section 154
shall, so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being reckoned [from the end of the financial
year in which the order was passed] under section 147.
[(4A) Where an
allowance by way of investment allowance has been made wholly or partly to an assessee in respect of a ship or an aircraft or any
machinery or plant in any assessment year under section 32A and subsequently—
(a) at any time before the expiry of eight
years from the end of the previous year in which the ship or aircraft was
acquired or the machinery or plant was installed, the ship, aircraft, machinery
or plant is sold or otherwise transferred by the assessee
to any person other than the Government, a local authority, a corporation
established by a Central, State or Provincial Act or a Government company as
defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection
with any amalgamation or succession referred to in sub-section (6) or
sub-section (7) of section 32A ;
or
(b) at any time before the expiry of ten
years from the end of the previous year in which the ship or aircraft was
acquired or the machinery or plant was installed, the assessee
does not utilise the amount credited to the reserve
account under sub-section (4) of section 32A for the purposes of acquiring a new ship or a new aircraft or new
machinery or plant (other than machinery or plant of the nature referred to in
clauses (a), (b) and (d) of the [second] proviso to
sub-section (1) of section 32A)
for the purposes of the business of the undertaking ; or
(c) at any time
before the expiry of 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
(iii) for any other purpose which is not a purpose of the business of the
undertaking,
the
investment allowance originally allowed shall be deemed to have been wrongly
allowed, and the [Assessing] Officer may, notwithstanding anything contained in
this Act, recompute the total income of the assessee for the relevant previous year and make the
necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the
period of four years specified in sub-section (7) of that section being
reckoned,—
(i) in a case referred to in clause (a),
from the end of the previous year in which the sale or other transfer took
place ;
(ii) in a case referred to in clause (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 [Explanation below sub-section
(2) of section 32A].]
(5) Where an
allowance by way of development rebate has been made wholly or partly to an assessee in respect of a ship, machinery or plant installed
after the 31st day of December, 1957, in any assessment year under section
33 or under the corresponding provisions
of the Indian Income-tax Act, 1922 (11 of 1922), and subsequently—
(i) at any time before the expiry of eight years from the end of the previous year in which the ship was acquired or the machinery or plant was installed, the ship, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (3) or 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
(c) for any other purpose which is not a purpose of
the business of the undertaking,
the
development rebate originally allowed shall be deemed to have been wrongly
allowed, and the [Assessing] Officer may, notwithstanding anything contained in
this Act, recompute the total income of the assessee for the relevant previous year and make the
necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the
period of four years specified in sub-section (7) of that section being
reckoned from the end of the previous year in which the sale or transfer took
place or the money was so utilised.
[(5A) Where an
allowance by way of development allowance has been made wholly or partly to an assessee in respect of the cost of planting in any area in
any assessment year under section 33A and subsequently—
(i) at any time
before the expiry of eight years from the end of the previous year in which
such allowance was made, the land is sold or otherwise transferred by the assessee to any person other than the Government, a local
authority, a corporation established by a Central, State or Provincial Act or a
Government company as defined in section 617 of the Companies Act, 1956 (1 of
1956), or in connection with any amalgamation or succession referred to in
sub-section (5) or 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
(c) for any other purpose which is not a purpose of
the business of the undertaking ;
the
development allowance originally allowed shall be deemed to have been wrongly
allowed, and the [Assessing] Officer may, notwithstanding anything contained in
this Act, recompute the total income of the assessee for the relevant previous year and make the necessary
amendment ; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years
specified in sub-section (7) of that section being reckoned from the end of the
previous year in which the sale or transfer took place or the money was so utilised.]
[Explanation.—For the purposes of this
sub-section, where an assessee having any leasehold
or other right of occupancy in any land transfers such right, he shall be
deemed to have sold or otherwise transferred such land.]
[(5B) Where any deduction in respect of any
expenditure on scientific research has been made in any assessment year under
sub-section (2B) of section 35
and the assessee fails to furnish a certificate of
completion of the programme obtained from the
prescribed authority within one year of the period allowed for its completion
by such authority, the deduction originally made in excess of the expenditure
actually incurred shall be deemed to have been wrongly made, and the [Assessing]
Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee
for the relevant previous year and make the necessary amendment; and the
provisions of section 154 shall,
so far as may be, apply thereto, the period of four years specified in
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) [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 [Assessing] Officer may proceed to recompute
the distributable income and determine the [tax] payable on the basis of such recomputation and make the necessary amendment ; and the
provisions of section 154 shall,
so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being reckoned [from the end of the financial
year in which the final order was passed] in the case of the company in respect
of that proceeding.
(7A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
[(7B) Where in the assessment for any year,
the capital gain arising from the transfer of a capital asset is not charged
under section 45 by virtue of the provisions of clause (iv) or, as the
case may be, clause (v) of section 47, but is deemed under section 47A to be income chargeable under the head
“Capital gains” of the previous year in which the transfer took place by reason
of—
(i) such capital
asset being converted by the transferee company into, or being treated by it,
as stock-in-trade of its business ; or
(ii) the parent company or its nominees or,
as the case may be, the holding company ceasing to hold the whole of the share
capital of the subsidiary company,
at any time
before the expiry of the period of eight years from the date of such transfer,
the [Assessing] Officer may, notwithstanding anything contained in this Act, recompute the total income of the transferor company for
the relevant previous year and make the necessary amendment ; and the
provisions of section 154 shall,
so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being reckoned from the end of the previous
year in which the capital asset was so converted or treated or in which the
parent company or its nominees or, as the case may be, the holding company
ceased to hold the whole of the share capital of the subsidiary company.]
(8) [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1992.]
(8A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(9) [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1992.]
(9A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(10) [Omitted
by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.
1-4-1992.]
[(10A) Where in the assessment for any year, a
capital gain arising from the transfer of a [long-term capital asset], is
charged to tax and within a period of six months after the date of such
transfer, the assessee has made any investment or
deposit in any specified asset within the meaning of Explanation 1 to
sub-section (1) of section 54E,
the [Assessing] Officer shall amend the order of assessment so as to exclude
the amount of the capital gain not chargeable to tax under the provisions of [sub-section
(1) of] section 54E ; and the
provisions of section 154 shall,
so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being [reckoned from the end of the financial
year in which the assessment was made.]
(10B) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(10C) [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
[(11) Where in the assessment for any year, a
capital gain arising from the transfer of any original asset as is referred to
in section 54H is charged to tax
and within the period extended under that section the assessee
acquires the new asset referred to in that section or, as the case may be,
deposits or invests the amount of such capital gain within the period so
extended, the Assessing Officer shall amend the order of assessment so as to
exclude the amount of the capital gain not chargeable to tax under any of the
sections referred to in section 54H;
and the provisions of section 154
shall, so far as may be, apply thereto, the period of four years specified in
sub-section (7) of section 154
being reckoned from the end of the previous year in which the compensation was
received by the assessee.]
[(11A) Where in the assessment for any year, the deduction under section
10A or section 10B or section 10BA has not been allowed on the ground that such
income has not been received in convertible foreign exchange in India, or
having been received in convertible foreign exchange outside India, or having
been converted into convertible foreign exchange outside India, has not been
brought into India, by or on behalf of the assessee
with the approval of the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for
regulating payments and dealings in foreign exchange and subsequently such
income or part thereof has been or is received in, or brought into, India in
the manner aforesaid, the Assessing Officer shall amend the order of assessment
so as to allow deduction under section 10A or section 10B or section 10BA, as
the case may be, in respect of such income or part thereof as is so received
in, or brought into, India, and the provisions of section 154 shall, so far as
may be, apply thereto, and the period of four years shall be reckoned from the
end of the previous year in which such income is so received in, or brought
into, India.]
[(12) Where in the assessment for any year
commencing before the 1st day of April, 1988, the deduction under section
80-O in respect of any income, being the
whole or any part of income by way of royalty, commission, fees or any similar
payment as is referred to in that section, has not been allowed on the ground
that such income has not been received in convertible foreign exchange in
India, or having been received in convertible foreign exchange outside India,
or having been converted into convertible foreign exchange outside India, has
not been brought into India, by or on behalf of the assessee
in accordance with any law for the time being in force for regulating payments
and dealings in foreign exchange and subsequently such income or part thereof
has been or is received in, or brought into, India in the manner aforesaid, the
Assessing Officer shall amend the order of assessment so as to allow deduction
under section 80-O in respect of
such income or part thereof as is so received in, or brought into, India; and
the provisions of section 154
shall, so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being reckoned from the end of the previous
year in which such income is so received in, or brought into, India; so,
however, that the period from the 1st day of April, 1988 to the 30th day of
September, 1991 shall be excluded in computing the period of four years.]
[(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.]
[(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 [or section 206C]
was not filed with the return and subsequently such certificate is produced
before the Assessing Officer within two years from the end of the assessment
year in which such income is assessable, the Assessing Officer shall amend the
order of assessment or any intimation or deemed intimation under sub-section
(1) of section 143, as the case may be, and the provisions of section 154
shall, so far as may be, apply thereto :
Provided that nothing contained in this sub-section
shall apply unless the
income from which the tax has been deducted [or income
on which the tax has been collected] has been disclosed in
the return of income filed by the assessee for the
relevant assessment year.
(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.]
[(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.]
[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 [***] is payable in
consequence of any order passed under this Act, the [Assessing] Officer shall
serve upon the assessee a notice of dmand in the prescribed form 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, [sub-section (1) [or
sub-section (3)] of section 74 or sub-section (3) of section 74A], the [Assessing]
Officer shall notify to the assessee by an order in
writing the amount of the loss as computed by him for the purposes of
sub-section (1) of section 72, sub-section (2) of section 73, [sub-section (1) [or
sub-section (3)] of section 74 or sub-section (3) of section 74A].
Intimation of assessment of firm.
158. [Whenever,
in respect of the assessment year commencing on the 1st day of April, 1992, or
any earlier assessment year, a registered firm is assessed], or an unregistered
firm is assessed under the provisions of clause (b) of section 183, the [Assessing]
Officer shall notify to the firm by an order in writing the amount of its total
income assessed and the apportionment thereof between the several partners.