Income Tax Act

Official PDF pages 381–385

SOURCE PDF PAGE 381
(2) Irrespective of anything contained in any law in force, the authority concerned
may, amend any order or intimation under sub-section (1) in relation to any matter,
other than the matter considered and decided in any proceeding by way of appeal
or revision, relating to such order or intimation.
(3) 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 —
( i )   the assessee or the deductor or the collector; or
( ii )   the Assessing Officer, if the authority concerned is the Joint   Com -
missioner (Appeals) or the Commissioner (Appeals).
(4) No amendment that enhances an assessment, reduces a refund or otherwise
increases the liability of the assessee or the deductor or the collector, shall be made
under this section by the authority concerned without giving to such assessee or
deductor or collector, as the case may be,—
( a )   a notice of its intention of making such amendment; and
( b )   a reasonable opportunity of being heard.
(5)   The income-tax authority concerned shall pass an order in writing, if an amend -
ment is made under this section.
(6) The Assessing Officer shall make refund which may be due to the assessee or the
deductor or the collector, where an amendment reduces the assessment or otherwise
reduces the liability of such assessee or the deductor or the collector.
(7) The Assessing Officer shall serve on the assessee or the deductor or the collector,
a notice of demand in such form as may be prescribed specifying the sum payable,—
( a )   where an amendment enhances the assessment
4  
or reduces a refund
already made or otherwise increases the liability of such assessee or the
deductor or the collector; and
( b )   such notice shall be deemed to be issued under section 289 and the
provisions of this Act shall apply accordingly.
(8) No amendment under this section, except as provided in section 288, shall be
made after four years from the end of the financial year in which the order or inti -
mation sought to be amended was passed.
(9) Subject to sub-section (8), an income-tax authority referred to in sub-section (1),
shall pass an order for making the amendment or refusing to allow the claim within
six months from the end of the month in which the application for amendment
under this section is received by it from the assessee or the deductor or the collector.
Other amendments.
288.   (1) The Assessing Officer, may carry out such actions as are specified in
column B of the Table below for reasons mentioned therein, subject to the
conditions as specified in column C, within four years referred to in section 287(8)

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SOURCE PDF PAGE 382
which shall be reckoned from the time as specified in column D, and the provisions
of section 287 shall, so far as may be, apply to such amendment:—
TABLE
Sl.
No.
Actions   Conditions   Time
A   B   C   D
1.   A m e n d m e n t   o f
order   of   assess -
ment of the part -
ner of a firm so
as   to   adjust   the
income of the part -
ner corresponding
to the amount not
deductible under
section 35( e ).
Where any remuneration to any
partner determined in completed
assessment of the firm is sub -
sequently found not deductible
under section 35( e ) in terms of—
( a )   assessment   or   reassess -
ment of the firm; or
( b )   any reduction or enhance -
ment made in the income of
the firm under this section
or section 287 or 359 or 363
or 365 or 368 or 377 or 378;
or
( c )   any order passed under
section   245D(4)   of   the
Income-tax   Act,   1961
(43 of 1961) on the appli -
cation made by the firm.
From the end of the
financial   year   in
which the subsequent
order was passed in
the case of the firm.
2.   A m e n d m e n t   o f
order   of   assess -
ment of the mem -
ber of an associ -
ation of   persons
or of a body of in -
dividuals; so as to
include the share
of the member in
the assessment or
the   corrections
thereof.
Where the share of the member
in the income of the association
of persons or body of individuals
determined in completed assess-
ment is subsequently found not
included in the assessment of
the member or, if included, is not
correct in terms of—
( a )   assessment   or   reassess -
ment of the association or
body;
( b )   any reduction or enhance -
ment made in the income
of the association or body
under this section or sec -
tion 287 or 359 or 363 or
365 or 368 or 377 or 378;
or
( c )   any order passed under
section   245D(4)   of   the
Income-tax Act, 1961 (43
From the end of the
financial   year   in
which the subsequent
order was passed in
the case of the asso -
ciation or body.

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SOURCE PDF PAGE 383
Sl.
No.
Actions   Conditions   Time
A   B   C   D
of 1961) on the application
made by the association or
body.
3.   Total income of the
assessee in respect
of succeeding year
or years referred
to   in   column   C,
to   be   recomput -
ed and necessary
amendment made
consequent to pro -
ceedings initiated
under section 279
for any tax year.
Where there is recomputation of
loss or depreciation for any tax
year, and in consequence to such
recomputation, 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 section 111(1)
or 112(1) or 113(2) or 115(1) is
required to be recomputed.
From the end of the fi -
nancial year in which
the order under sec -
tion 279 was passed.
4.   The total income
of the transferor
company for the
tax year referred
to in column C, to
be recomputed and
necessary amend -
ment made.
Where in the assessment for any
tax year,—
( a )   the   capital   gain   arising
from the transfer of a cap -
ital asset is not charged
under section 67
17  
in terms
of section 70(1)( c ) or ( d );
( b )   such   gains   are   deemed
under section 71(1)
19  
as
“Capital gains” of the tax
year in which the transfer
took place at any time be -
fore the expiry of the period
of eight years from the date
of such transfer by reason
of—
( i )   such capital asset be -
ing 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,
the holding company
ceasing to hold the
From the end of the
year—
( i )   in   which   the
capital   asset
was converted
or   treated   as
stock-in-trade;
or
( ii )   in   which   the
parent compa -
ny or its nom -
inees   or,   the
holding   com -
pany   ceased
t o   h o l d   t h e
whole   of   the
share capital of
the subsidiary
company.

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SOURCE PDF PAGE 384
Sl.
No.
Actions   Conditions   Time
A   B   C   D
whole of the share
capital of the subsid -
iary company.
5.   The order of as -
sessment   to   be
amended; so as to
exclude the capital
gain   not   charge -
able to tax under
any of the sections
referred to in sec -
tion 89.
Where in the assessment for any
tax year, a capital gain on transfer
of original asset, referred to in
section 89 is charged to tax and
within the period extended under
that section—
( a )   the assessee acquires the
new asset referred to in
that section; or
( b )   deposits or invests such
capital gain.
From the end of the fi -
nancial year in which
the   compensation
was received by the
assessee.
6.   The order of as -
sessment   to   be
amended to allow
deduction   in   re -
spect of such in -
come or part there -
of as is so received
in, or brought into,
India.
Where in the assessment for
any year, any deduction under
section 144 has not been allowed
on the ground that—
( a )   such income has not been
received   in   convertible
foreign exchange in India;
or
( b )   such income 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 regulat -
ing payments and dealings
in foreign exchange,
From the end of the fi -
nancial year in which
such income is so re -
ceived in, or brought
into, India.

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SOURCE PDF PAGE 385
Sl.
No.
Actions   Conditions   Time
A   B   C   D
and subsequently such income
or part thereof has been or is re -
ceived in, or brought into, India
as required for the deduction.
7.   The   order   of   assess -
ment or any inti -
mation or deemed
intimation under
section 270(1), to
be   amended,   to
give credit for in -
come-tax for the
year in which such
income is offered
to tax or assessed
to tax in India.
Where in the assessment for any
tax year or in any intimation or
deemed intimation under section
270(1) for any tax year,—
( a )   credit for income-tax paid
in any country outside In -
dia or a specified territory
outside India referred to in
Chapter IX-B has not been
given on the ground that
the payment of such tax
was under dispute; and
( b )   subsequently such dispute
is settled; and the assessee,
within six months from
the end of the month in
which the dispute is settled,
furnishes to the Assessing
Officer—
( i )   evidence   of   settle -
ment of dispute and
evidence of payment
of such tax; and
( ii )   an undertaking that
no credit in respect
of such amount has
directly or indirectly
been claimed or shall
be claimed for any
other tax year.
From the end of the
financial   year   in
which such dispute
is settled.
8.   The order of as -
sessment   to   be
amended to com -
pute   the   capital
gain by taking the
full value of the
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—
From the end of the fi -
nancial year in which
the order revising the
value was passed in
appeal or revision or
reference.