New IT Act 2025 — Knowledge Bank

Other amendments

Section 288 — Other amendments

Old Act equivalent: Section 155 of IT Act 1961 Sub-part: Rectification and Demands

Statutory Text

  1. (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) 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
  2. Amendment of
    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.
  3. Amendment of
    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 (43From the end of the
    financial year in which the subsequent order was passed in the case of the asso - ciation or body. Sl. No.Actions Conditions Time A B C D of 1961) on the application made by the association or body.
  4. 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.
  5. 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 6717 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 theFrom 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 to hold the whole of the share capital of the subsidiary company. Sl. No.Actions Conditions Time A B C D whole of the share capital of the subsid - iary company.
  6. 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.
  7. 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. 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.
  8. 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.
  9. The order of as - sessment to be amended to com - pute the capital gain by taking the full value of theWhere, 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. 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).
  10. 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. 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.
  11. 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.
  12. 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 ChapterFrom the end of the fi - nancial year in which such tax has been deducted. 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.

Provisos

None.

Explanations

None.

Tables

See statutory text above.

Cross-References

To be updated.

Notes

  • Verification status: pending
  • Auto-generated from IT Act 2025 PDF on 2026-04-13
  • [[r178-application-under-section-2881table-sl-no-11-regarding-credi|Rule 178 — Application under section 288(1)[Table: Sl. No. 11…]]

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