Section 288Chapter 16

Other amendments

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 (except serial number 12) 25 referred to in section 287section 287(8) which shall be reckoned from the time as specified in column D, and the provisions of section 287section 287 shall, so far as may be, apply to such amendment:— Table Sl.No. Actions Conditions Time 30 A B C D 1. Amendment Where any remuneration From the end of order of of the financial to any partner determined assessment of the year in which the in completed assessment of partner of a firm subsequent order the firm is subsequently 35 so as to adjust the was passed in the income of the found not deductible under case of the firm. partner section 35section 35(f) in terms of— corresponding to (a) assessment or the amount not reassessment of the firm; or deductible under 40 section 35section 35(f) (b) any reduction or enhancement made in the income of the firm under this section or section 287section 287 or 356 or 363 or 365or 45 368 or 377 or 378; or (c) any order passed under section 245D (4) of the Income-tax Act, 1961 on the application made 50 by the firm, A B C D 2. Amendment Where the share of the From the end of order of of the financial member in the income of the assessment of the year in which the association of persons or member of an subsequent order body of individuals association of was passed in the determined in completed persons or of a case of the assessment is subsequently body of association or found not included in the individuals; so as body. assessment of the member to include the or, if included, is not correct share of the in terms of — member in the assessment or the (a) assessment or corrections reassessment of the thereof association or body;

(b)

any reduction or enhancement made in the income of the association or body under this section or section 287section 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 application made by the association or body. 3. Total income (a) Recomputation of From the end of the assessee in loss or depreciation; and of the financial respect of year in which the (b) in consequence to succeeding year order under or years referred such recomputation, section 279section 279 was to in column C, recompute the total income passed. to be recomputed of the assessee for the and necessary succeeding year or years to amendment which the loss or made consequent depreciation allowance has to proceedings been carried forward and initiated under set off under the provisions section 279section 279 for of section 112section 112(1) or 113(2) any tax year. or 111(1) and (2) or 115(1) 4. The total Where in the assessment From the end income of the for any tax year,— of the year— transferor (a) the capital gain (i) in which company for the arising from the transfer the capital asset tax year referred to in column C, to of a capital asset is not was converted be recomputed charged under section 67section 67 or treated as in terms of section and necessary stock-in trade; amendment 70(1)(c) or (d); or A B C D (b) such gains (ii) in which the parent are deemed under company or its section 71section 71(1) as nominees or, the “Capital gains” of the 5 holding company tax year in which the ceased to hold the transfer took place at whole of the any time before the share capital of expiry of the period the subsidiary 10 of eight years from company. the date of such transfer 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, the holding company ceasing to hold the whole of the share capital of the subsidiary company. 5. The order of Where in the assessment From the end assessment to be for any tax year, a capital of the financial amended; so as gain on transfer of original year in which the to exclude the asset, referred to in section compensation capital gain not 89 is charged to tax and was received by chargeable to tax the assessee. within the period extended under any of the under that section–– 35 sections referred to in section 89section 89. (a) the assessee acquires the new asset referred to in that section; or (b) deposits or invests such capital gain. 6. The order of Where in the assessment From the end assessment to be for any year, any deduction of the financial amended - to under section 144section 144 has not year in which allow deduction - been allowed on the ground such income is so in respect of such that–– received in, or income or part brought into, (a) such income has thereof as is so India. not been received in received in, or convertible foreign brought into, exchange in India; or India. A B C D (b) 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 specified in (b) above. 7. The order of Where in the assessment From the end assessment or any for any tax year or in any of the financial intimation or intimation or deemed year in which deemed intimation under section such dispute is intimation under 270(1) for any tax year,–– settled. section 270section 270(1), -to (a) credit for income- be amended, - to tax paid in any country give credit for outside India or a income-tax - for specified territory the year in which outside India referred to such income is in Chapter IX-B has not offered to tax or been given on the assessed to tax in ground that the payment India. 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 settlement of dispute and evidence of payment of such tax; and A B C D (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. The order of Where, in the assessment From the end 8. assessment -to be for any year, a capital gain of the financial amended -to arising from the transfer of a year in which the compute the capital asset, being land or order revising the capital gain by building or both, is value was passed taking the full computed— in appeal or value of the revision or (a) by taking the full consideration to reference. value of the be the value as so consideration received or revised in appeal accruing as a result of the or revision or transfer to be the value reference. adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty as per section 78section 78(1); and

(b) subsequently such value is revised in any appeal or revision or reference referred to in section 78section 78(2)(b). 9. The order of (a) Where in the From the end assessment -to assessment for any year, a of the financial be amended - to capital gain arising from the year in which the compute the transfer of a capital asset order reducing capital gain by being a transfer referred to the compensation taking the in clause (b) is computed–– was passed by the compensation or (i) by taking the court, Tribunal or consideration as compensation or other authority. so reduced by the consideration as referred court, Tribunal to in section 67section 67(12)(a) or, or any other as the case may be, the authority to be compensation or the full value of consideration enhanced consideration. or further enhanced as referred to in section 67section 67(12)(b), to be the full value of consideration deemed to be received or accruing as a result of the transfer of the asset; and

(ii) subsequently such compensation or consideration is reduced by any court, Tribunal or other authority. A B C D

(b)

The transfer and consideration referred to in clause (a) shall be

(i)

Transfer by way of compulsory acquisition under any law;

(ii)

consideration that was determined or approved by the Central Government or the Reserve Bank of India. Where a deduction has 10. Amendment From the end been allowed to an assessee to total income to of the financial in any tax year undersection disallow the year in which the 152 in respect of any patent, deduction order of the and subsequently by an order allowed under Controller under of the Controller or the High section 152section 152. section 2section 2(1)(b), or Court under the Patents Act, the High Court 1970 (39 of 1970),— under section (a) the patent was 2(1)(i), of the revoked, or Patents Act, 1970 (b) the name of the (39 of 1970), was assessee was excluded passed. 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 assessee was excluded as patentee in respect of that patent, shall be deemed to have been wrongly allowed. 11. Amendment (a) Where any income From the end of the order of has been included in the of the financial assessment or return of income furnished year in which any intimation - by an assessee under such tax has been to allow credit of section 263section 263 for any tax deducted. such tax year, and tax on such income has been deducted deducted at at source and paid to the source in the tax credit of the Central year referred to Government as per the in column C, and provisions of Chapter XIX- the credit of such B in a subsequent tax year; tax deducted at and source not to be (b) an application is allowed in any made by an assessee in such other tax year. form, as prescribed, within two years from the end of the tax year in which such tax was deducted at source. A B C D 12. The order of Where the Transfer (i) Within three assessment or Pricing Officer under months from the any intimation or section 166section 166(9) declares the end of the month deemed option of the assessee, for in which the intimation under determining the arm’s assessment is section 271section 271 to be length price of similar completed in the amended for two international or specified case of the consecutive tax domestic transaction for the assessee for the years to give two consecutive tax years relevant tax year, effect to the immediately following the and section 165section 165(7) order passed relevant tax year, as valid. and (8) is under section applicable. 166(6) or

(ii)

If the order directions issued of assessment or under section any intimation or 275(5) deemed intimation under section 270section 270(1), for the 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 intimation or deemed intimation, is made.