Income Tax Act

Official PDF pages 386–390

SOURCE PDF PAGE 386
Sl.
No.
Actions   Conditions   Time
A   B   C   D
consideration   to
be the value as so
revised in appeal
or revision or ref -
erence.
( a )   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 Gov -
ernment for the purpose
of payment of stamp duty
as per section 78(1); and
( b )   subsequently such value is
revised in any appeal or re -
vision or reference referred
to in section 78(2)( b ).
9.   The order of as -
sessment   to   be
amended to com -
pute   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.
( a )   Where in the assessment
for any year, a capital gain
arising from the transfer
of a capital asset being
a transfer referred to in
clause ( b ) is computed—
( i )   by taking the com -
pensation or consid -
eration as referred to
in section 67(12)( a )
or, as the case may
be,   the   compensa -
tion or consideration
enhanced or further
enhanced as referred
to in section 67(12)
( b ), to be the full val -
ue of consideration
deemed   to   be   re -
ceived or accruing as
a result of the transfer
of the asset; and
( ii )   subsequently   such
compensation   or
consideration is re -
duced by any court,
Tribunal   or   other
authority.
From the end of the
financial   year   in
which the order re -
ducing the compen -
sation was passed by
the court, Tribunal or
other authority.

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SOURCE PDF PAGE 387
Sl.
No.
Actions   Conditions   Time
A   B   C   D
( b )   The transfer and consider -
ation referred to in clause
( a ) shall be,—
( i )   transfer by way of
compulsory acquisi -
tion under any law;
( ii )   consideration   that
was determined or
approved by the Cen -
tral Government or
the Reserve Bank of
India.
10.   Recomputation of
the   total   income
to disallow the de -
duction   allowed
under section 152.
Where a deduction has been
allowed to an assessee in any tax
year under section 152 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),—
( a )   the patent was revoked, or
( b )   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 name of the as -
sessee was excluded as patentee
in respect of that patent, shall be
deemed to have been wrongly
allowed.
From the end of the
financial   year   in
which the order of
the Controller under
section   2(1)( b ),   or
the High Court under
section 2(1)( i ), of the
Patents Act, 1970 (39
of 1970), was passed.
11.   Amendment of the
order   of   assess -
ment or any inti -
mation   to   allow
credit of such tax
deducted at source
in the tax year re -
ferred to in column
C, and the credit of
such tax deducted
( a )   Where   any   income   has
been included in the return
of income furnished by an
assessee under section 263
for any tax year, and tax
on such income has been
deducted at source and
paid to the credit of the
Central Government as per
the provisions of Chapter
From the end of the fi -
nancial year in which
such   tax   has   been
deducted.

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SOURCE PDF PAGE 388
Sl.
No.
Actions   Conditions   Time
A   B   C   D
at   source   not   to
be allowed in any
other tax year.
XIX-B in a subsequent tax year;
and
( b )   an application is made by
an assessee in such form, as
may be prescribed, within
two years from the end of
the tax year in which such
tax was deducted at source.
(2)( a ) Where the arm’s length price is determined in relation to an international
transaction or a specified domestic transaction under section 166(6) for any tax year
and the Transfer Pricing Officer has declared that an option exercised by the assessee
is valid under section 166(9) in respect of such transaction for two consecutive tax
years immediately following such tax year, the Assessing Officer shall proceed to
recompute the total income of the assessee for the said two consecutive tax years,
by amending the order of assessment or any intimation or deemed intimation under
section 270(1)
31
, as the case may be,—
( i )   in conformity with the arm’s length price so determined by the Transfer
Pricing Officer under section 166(12) in respect of such transaction; and
( ii )   taking into account the directions issued under section 275(5), if any, for
such tax year,
within three months from the end of the month in which the assessment is com -
pleted in the case of the assessee for such tax year, and the provisions of sections
165(7) and (8) shall apply thereto.
( b ) Where the order of assessment or any intimation or deemed intimation under
section 270(1) as referred to in sub-section (1), for the said two consecutive tax years
is not made within the said three months, such recomputation shall be made within
three months from the end of the month in which such order of assessment or any
intimation or deemed intimation under section 270(1)
31
, as the case may be, is made.
Notice of demand.
289.   (1) When any tax, interest, penalty, fine or any other sum is payable in
consequence of any order passed under this Act, the Assessing Officer shall
serve upon the assessee a notice of demand in such form, as may be prescribed,
specifying the sum so payable.
(2) Where any sum is determined to be payable by the assessee or the deductor or
the collector under section 270 or 399, the intimation under the said sections shall
be deemed to be a notice of demand for the purposes of this section.
(3) Where the income of the assessee of any tax year includes income of the nature
specified in section 17(1)( d )   and such specified security or sweat equity shares re -
ferred to in the said section are allotted or transferred directly or indirectly by the
current employer, being an eligible start-up referred to in section 140, the tax or
interest on such income included in the notice of demand referred to in sub-section
(1) shall be payable by the assessee within fourteen days—

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SOURCE PDF PAGE 389
( a )   after the expiry of sixty months from the end of the relevant tax year; or
( b )   from the date of the sale of such specified security or sweat equity share
by the assessee; or
( c )   from the date of the assessee ceasing to be the employee of the employer
who allotted or transferred him such specified security or sweat equity
share,
whichever is the earliest.
Modification and revision of notice in certain cases.
290.   (1) Where,—
( a )   any tax, interest, penalty, fine or any other sum in respect of which a
notice of demand has been issued earlier under section 289; and
( b )   such tax, interest, penalty, fine or any other sum is reduced as a result of
an order of the Adjudicating Authority as defined in section 5(1) of the
Insolvency and Bankruptcy Code, 2016 (31 of 2016),
the Assessing Officer shall serve on the assessee a modified notice of demand spec -
ifying the sum payable, if any, and such notice shall be treated as a notice under
section 289 and the provisions of this Act shall accordingly apply in relation to
such notice.
(2) The modified notice of demand as referred to in sub-section (1) shall be revised
where the order referred to in sub-section (1)( b ) is modified by the National Com -
pany Law Appellate Tribunal or the Supreme Court.
Intimation of loss.
291.   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 section 111(1)
or 112 or 113(2) or 115(1), where—
( a )   in the course of the assessment of the total income of any assessee, it is
established that a loss has taken place; and
( b )   the assessee is entitled to have carried forward and set off such loss under
the provisions of the said sections.
B. — Special procedure for assessment of search cases
Assessment of total undisclosed income as a result of search.
292.   (1) Irrespective of any other provision of this Act, where on or after the
commencement of this Act, in the case of any person, a search is initiated or
requisition is made, then, the Assessing Officer shall proceed to assess or reassess
the total undisclosed income of the block period as per provisions of this Part.
(2)( a ) The assessment or reassessment or recomputation proceedings under the
provisions of this Act (other than of this part), if any, pertaining to any tax year
falling in the block period, pending on the date of initiation of search, or the date
of making of requisition, as the case may be, shall abate and shall be deemed to
have been abated on such date.
( b ) Any proceeding for assessment or reassessment or recomputation under any
provisions of this Act (other than this Part) pertaining to any tax year falling in the

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SOURCE PDF PAGE 390
block period (other than the tax year in which last of the authorisations for a search
is executed or requisition is made), for which a notice has been issued during the
period commencing on date of initiation of search or the date of making of req -
uisition and ending on the date of making of order under section 294(1)( c ), shall
abate and shall be deemed to have been abated on the date of issue of such notice.
(3) If any reference has been made under section 166(1) or order has been passed
under section 166(6), the assessment or reassessment or recomputation proceedings
referred to in sub-section (2) together with such reference or order, shall abate and
shall be deemed to have abated on the date referred to in sub-section (2).
(4) If any assessment under the provisions of this part is required to be made in
the case of an assessee, in whose case a search is initiated or a requisition is made
subsequently—
( a )   such pending assessment shall be duly completed;
( b )   assessment in respect of such subsequent search or requisition shall be
made thereafter under the provisions of this part; and
( c )   if the period available for assessment in clause ( b ) is less than three
months, such period shall be extended to three months from the end
of the month in which the assessment, as referred to in clause ( a ) was
completed.
(5) Irrespective of anything contained in this part or section 286, if any proceeding
initiated under this part or any order of assessment or reassessment made under
section 294(1)( c ) has been annulled in an appeal or any other legal proceeding, then—
( a )   the assessment or reassessment or recomputation or reference or order
relating to any tax year which has abated under sub-section (2) or (3),
shall revive with effect from the date of receipt of the order of such
annulment by the Principal Commissioner or Commissioner;
( b )   the revival, as referred to in clause ( a ) shall cease to have effect, if such
order of annulment is set aside.
(6) The income (other than undisclosed income) of the tax year in which the last of
the authorisations for a search is executed or a requisition is made, shall be assessed
separately as per the other provisions of this Act.
(7) The total undisclosed income relating to the block period, as referred to in sec -
tion 293(7) shall be charged to tax at the rate specified in section 192 as income of
the block period, irrespective of the tax year or years to which such income relates.
Computation of total undisclosed income of block period.
293.   (1) The total undisclosed income of the block period referred to in section
292(1) shall be the aggregate of the following:—
( a )   undisclosed income declared in the return furnished under section
294;
( b )   undisclosed income determined by the Assessing Officer under sub-sec -
tion (4).
(2) The following income shall not be included in the total undisclosed income of
the block period:—