Assessement Procedure in Indian Income Tax

by
Dr Vinay Kumar Singh

Additional Director (Faculty),
NATIONAL ACADEMY OF DIRECT
TAXES, NA!"R
. . . . , N \ D T Nupur
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3
LAW
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4
LAW is in the form of text, which in turn is composed of
words & phrases
Words (& phrases) can often mean different things in
different contexts
Different persons can claim different meaning or
interpretation of words (& phrases)
Words (& phrases) can e defined within the rele!ant law
(Act)
Definitions themsel!es are composed of words (& phrases), and so
ma" ecome su#ect to interpretational disputes
Words (& phrases) not defined in the law (Act) ha!e to e
understood as there are used in common parlance (so far
as the" do not lead to asurdit")
$he %&W'( &) *+$'(%('$A$*&+ &) *+$'+$*&+ &)
L',*-LA$.(' in use of particular words (& phrases) in law
!ests with the /igher #udiciar" (/0 1 -0)
*+$'(%('$A$*&+ &) -$A$.$'

!ux !ux . .
2
Law is made " the
representati!es of the
citi3ens
All pulic ser!ants wor4 for the
citi3ens of the countr"
'xecuti!e has the responsiilit"
of ensuring compliance of the
Law
*ncome tax authorities are
5.A-*-6.D*0*AL in nature
While exercising this
responsiilit", and while
dealing with citi3ens, the"
must follow the asic
principles of natural #ustice7
A!!RECIATION OF
E#IDENCE
O!!ORT"NITY OF $EIN
%EARD
S!EA&IN ORDER
A!!LICATION OF MIND
%(*+0*%L'- &) +A$.(AL

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L*9*$A$*&+ &) %&W'(
+o action can e ta4en " an executi!e
that impinges upon an" of the rights of
the citi3ens, unless the Law authori3es
such action
Action can onl" e ta4en " the authorit"
to whom the power is delegated, &+L:
within his 6.(*-D*0$*&+
$here must e application of mind " that
authorit"
Action must e ;&+A-)*D' & +&+-
D*-0(*9*+A$&(: (+'.$(AL*$:)
L*9*$A$*&+ &) $*9'

$ime limits often defined in the Act for
certain actions
+o action possile once ;A(('D ;: $*9'
L*9*$A$*&+
L*9*$A$*&+ &) *+$'(%('$A$*&+

Words (& phrases) defined in the statute
0ase laws interpreting the meaning of
certain terms
0ommon parlance (in 4eeping with o!erall
o#ecti!e)
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Sec '( o) INDIAN !ENAL CODE

Nint*- '!er" officer whose dut" it is, as such officer, to
ta4e, recei!e, 4eep or expend an" propert" on ehalf of
the ,o!ernment, or to ma4e an" sur!e", assessment or
contract on ehalf of the ,o!ernment, or to execute
an" re!enue process, or to in!estigate, or to report, on
an" matter affecting the pecuniar" interests of the
,o!ernment, or to ma4e, authenticate or 4eep an"
document relating to the pecuniar" interests of the
,o!ernment, or to pre!ent the infraction of an" law for
the protection of the pecuniar" interests of the
,o!ernment@
Tent*- '!er" officer whose dut" it is, as such officer, to
ta4e, recei!e, 4eep or expend an" propert", to ma4e
an" sur!e" or assessment or to le!" an" rate or tax for
an" secular common purpose of an" !illage, town or
district, or to ma4e, authenticate or 4eep an"
document for the ascertaining of the rights of the
people of an" !illage, town or district@
T+el)t*- E,ery -er.on/
(a) in t*e .er,ice or -ay o) t*e o,ern0ent or
re0unerated 1y )ee. or co00i..ion )or t*e
-er)or0ance o) any -u1lic duty 1y t*e
o,ern0ent2
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Sec3 ' (4A) A..e..in5 O))icer means

the Assistant 0ommissioner or Deput"
0ommissioner or Assistant Director or
Deput" Director or the *ncome-tax
&fficer who is !ested with the rele!ant
#urisdiction " !irtue of directions or
orders issued under su-section (B) or
su-section (D) of section BDC or an"
other pro!ision of this Act,
and the Additional 0ommissioner or

Additional Director or 6oint
0ommissioner or 6oint Director who is
directed under clause () of su-section
(4) of that section to exercise or
perform all or an" of the powers and
functions conferred on, or assigned to,
an Assessing &fficer under this Act @
BD
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Sec3 ('6 7uri.diction o) inco0e/ta8 aut*oritie.
(() *ncome-tax authorities shall exercise all or an" of the

powers and perform all or an" of the functions conferred
on, or, as the case ma" e, assigned to such authorities
" or under this Act in accordance with such directions as
the ;oard ma" issue for the exercise of the powers and
performance of the functions " all or an" of those
authoritiesE
Explanation. )or the remo!al of douts, it is here"

declared that an" income-tax authorit", eing an
authorit" higher in ran4, ma", if so directed " the ;oard,
exercise the powers and perform the functions of the
income-tax authorit" lower in ran4 and an" such direction
issued " the ;oard shall e deemed to e a direction
issued under su-section (B)E
(') $he directions of the ;oard under su-section (B) ma"

authorise an" other income-tax authorit" to issue orders
in writing for the exercise of the powers and performance
of the functions " all or an" of the other income-tax
authorities who are suordinate to itE
. ( ) S c c ? \ \ ssc ss!n
O !cc r
B3
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Sec3 ('6 7uri.diction o) inco0e/ta8 aut*oritie.
9) Without pre#udice to the pro!isions of su-sections (B) and (D), the

;oard ma", " general or special order, and su#ect to such
conditions, restrictions or limitations as ma" e specified therein,
(a) authorise an" Director ,eneral or Director to perform such

functionsof an" other income-tax authorit" as ma" e assigned to
him " the ;oard@
(b) empower the Director ,eneral or 0hief 0ommissioner or

0ommissioner to issue orders in writing that the powers and
functions conferred on, or as the case ma" e, assigned to, the
Assessing &fficer " or under this Act in respect of an" specified
area or persons or classes of persons or incomes or classes of
income or cases or classes of cases, shall e exercised or
performed " an Additional 0ommissioner or an Additional
Director or a 6oint 0ommissioner or a 6oint Director, and, where
an" order is made under this clause, references in an" other
pro!ision of this Act, or in an" rule made thereunder to the
Assessing &fficer shall e deemed to e references to such
Additional 0ommissioner or Additional Director or 6oint
0ommissioner or 6oint Director " whom the powers and functions
are to e exercised or performed under such order, and an"
pro!ision of this Act reGuiring appro!al or sanction of the 6oint
0ommissioner shall not appl"E
. ( ) S c c ? \ \ ssc ss!n
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B4
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*E$E Authorit" !sE AE&E
-ec BDC t or s
su s t on( (
vs susection (4)()
What is the impact of secE BDC (D)
0an there e more than one AE&E for the same
assessee
0an a 6tE 0*$ e made an A& " appl"ing secE
BDC (D)
When will an AddlE 0*$ ecome an AE&E
0an a 0*$ ecome an AE&E rele!ance of secE
BDC (D)
B2
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!ux !ux . .
%rior to restructuring of our DepttE, AddlE 1
6tE 0*$s were designated DepE0*$ -ecE D
(D?0) existed ut not secE D (B0).
(FY 2007, w.r.e.f. 1.6.1994)
;oardIs letter dt >-D-CD stated that AddlE
0*$160*$ is entitled to exercise all the
powers and functions of an Assessing
&fficer wor4ing under himE /e can also
finalise the assessment under his
signaturesE
0*$ forwarded the ;oardJs letter to all
AddlE0*$160*$
*n case of ;indal Apparels, the AddlE 0*$
made the assessment orderE
Assessee challenged efore the *$A$, Delhi
that AddlE 0*$ was not an A&, so the order
is in!alidE
::::
B8
A--'--*+, &))*0'( H A 0A-' -$.D:
!ux !ux . .
Held
T*e Additional CIT +a. not t*e

;A..e..in5 O))icer< to i..ue a notice
under .3(9= o) t*e Inco0e Ta8 Act
(>?( and 0a@e t*e a..e..0ent
-articularly +*en *e +a. not .o
a--ointed 1y a .-eci)ic order under
.3('6(9)(1) o) t*e Act3 T*ere)ore,
t*e a..e..0ent 0ade 1y t*e
Additional CIT +a. in,alid3 T*e
de)inition o) 7oint CIT under .3'('AC)
o) t*e Act, +*ic* included an
Additional CIT, +a. irrele,ant )or
t*at -ur-o.e3
-Delhi *$A$, in case of ;indal Apparel !sE A0*$, *$ Appeal +oE 2C>
(Delhi) of DCC3
B>
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t t su s t on to
n t on l
r tor o n om
t x or Jo nt
r tor o n om
t x or n ss st nt
r tor or put
r tor o n om
t x
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CONSTTT|TTON Ol TNDT\ CONSTTT|TTON Ol TNDT\
DB
$A< ('0&='(: &))*0'(
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DD
Sec3 '('BA) India means the territor" of

*ndia as referred to in article B of the
0onstitution, its territorial waters, seaed
and susoil underl"ing such waters,
continental shelf, exclusi!e economic 3one
or an" other maritime 3one as referred to in
the $erritorial Waters, 0ontinental -helf,
'xclusi!e 'conomic Mone and other
9aritime Mones Act, BA>8 (?C of BA>8), and
the air space ao!e its territor" and
territorial waters
*+D*A
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CONSTTT|TTON Ol TNDT\ CONSTTT|TTON Ol TNDT\
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) b !hc |n!cn !crr!!cr!cs spcc!!cd
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cu!cr cdc c !hc ccn!!ncn!u!

mur!n cr !c u d!s!uncc c !c
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n orpor t or not
(v lo l ut or t
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ll n # t n n o
t pr n su
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xpl n t on or t
purpos s o t s l us n
sso t on o p rsons or
o o n v u ls or
lo l ut or t or n
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p rson # s orm or
st l s or
n orpor t # t t
o t o r v n
n om pro ts or ns
D8
|n!!v c cncrsh!p
/E.E)E
!ux !ux . .
%"F %"F H not defined in *E$E Act, reference in /indu Law
Characteristics :
-indi!ided famil" of those to whom /indu Law applies NBA>DO ?3 *$( >DC (-0)
-/*+D. is a person whose parents are /indu & who is rought up a /induEENBA>8O BC4 *$( 438 (-0)
-includes 6ainsPPENBA34OD *$( 483
-co!ers oth Da"aagh & 9ita4sharaschool NBA>4O A> *$( 4A3
--ingle indi!idual not /.)NBA>4O A> *$( 4A3EEEEED male memers not reGd NBA88O8C *$(DA3(-0)
-reGuires presence of male memerPPPNDCCBO D4? *$( DCB(-0)
Nu!uru! humun bc!n . [ ] |dhum S!nh vs CTT !O88

!! TTR 4!
D\Y\l\GH\
MTT\|SH\R\
. vs
|n!!v c
pcsscss!cn
D>
0&9%A+:
!ux !ux . .
Sec3 '((4 Sec3 '((4) ) compan" means compan" means
(i) an" (i) an" Indian co0-any Indian co0-any, or , or
(ii) an" od" corporate incorporated " or under (ii) an" od" corporate incorporated " or under
the laws of a countr" outside *ndia, or the laws of a countr" outside *ndia, or
(iii) an" institution, association or od" which is or (iii) an" institution, association or od" which is or
was assessale or was assessed as a compan" was assessale or was assessed as a compan"
for an" assessment "ear under the *ndian for an" assessment "ear under the *ndian
*ncome-tax Act, BADD (BB of BADD), or which is *ncome-tax Act, BADD (BB of BADD), or which is
or was assessale or was assessed under this or was assessale or was assessed under this
Act as a compan" for an" assessment "ear Act as a compan" for an" assessment "ear
commencing on or efore the Bst da" of April, commencing on or efore the Bst da" of April,
BA>C, or BA>C, or
(i!) an" institution, association or od", whether (i!) an" institution, association or od", whether
incorporated or not and whether *ndian or non- incorporated or not and whether *ndian or non-
*ndian, which is declared " general or special *ndian, which is declared " general or special
order of the ;oard to e a compan" 7 order of the ;oard to e a compan" 7
%ro!ided that such institution, association or od" %ro!ided that such institution, association or od"
shall e deemed to e a compan" onl" for such shall e deemed to e a compan" onl" for such
assessment "ear or assessment "ears (whether assessment "ear or assessment "ears (whether
commencing efore the Bst da" of April, BA>B, commencing efore the Bst da" of April, BA>B,
or on or after that date) as ma" e specified in or on or after that date) as ma" e specified in
the declaration @ the declaration @
. ( ) S c c ? ? G
D?
0&9%A+:
!ux !ux . .
Sec3 '('?) Indian co0-any 0ean. a co0-any )or0ed and

re5i.tered under t*e Co0-anie. Act, (>B? (( o) (>B?), and
include.
( a co0-any )or0ed and re5i.tered under any la+ relatin5 to co0-anie.
)or0erly in )orce in any -art o) India (ot*er t*an t*e State o) 7a00u
and &a.*0ir and t*e "nion territorie. .-eci)ied in .u1/clau.e (iii) o)
t*i. clau.e) 2
(ia) a cor-oration e.ta1li.*ed 1y or under a Central, State or !ro,incial Act 2
(i1) any in.titution, a..ociation or 1ody +*ic* i. declared 1y t*e $oard to 1e

a co0-any under clau.e ((4)2
(ii) in t*e ca.e o) t*e State o) 7a00u and &a.*0ir, a co0-any )or0ed and
re5i.tered under any la+ )or t*e ti0e 1ein5 in )orce in t*at State 2
(iii) in t*e ca.e o) any o) t*e "nion territorie. o) Dadra and Na5ar %a,eli,
oa, Da0an and Diu, and !ondic*erry, a co0-any )or0ed and re5i.tered
under any la+ )or t*e ti0e 1ein5 in )orce in t*at "nion territory C
!ro,ided t*at t*e re5i.tered or, a. t*e ca.e 0ay 1e, -rinci-al o))ice
o) t*e co0-any, cor-oration, in.titution, a..ociation or 1ody in all
ca.e. i. in India 2
TNDT\N
COMl\NY
lcrc!n
. Cc
lur!!cr u
. Cc
Dcc!urcd u
. Cc
. Scc ?
( ) !
DA
0&9%A+:
!ux !ux . .
Co0-anie. Act, (>B? Co0-anie. Act, (>B?
Sec =3 De)inition. o) co0-any, e8i.tin5 co0-any, !ri,ate

co0-any and -u1lic co0-any3
(() *n this Act, unless the context otherwise reGuires, the

expressions Qcompan"Q, Qexisting compan"Q, Qpri!ate compan"Q
and Qpulic compan"Q, shall, su#ect to the pro!isions of su-
section (D), ha!e the meanings specified elow 7R
(i) Qco0-anyQ means a compan" formed and registered under

this Act or an existing compan" as defined in clause (ii)7
(ii) Qe8i.tin5 co0-anyQ means a compan" formed and

registered under an" of the pre!ious companies laws specified
elow7R
(a) an" Act or Acts relating to companies in force efore the

*ndian 0ompanies Act, B?88 (BC of B?88) and repealed " that Act@
() the *ndian 0ompanies Act, B?88 (BCC8 BA88)@
(c) the *ndian 0ompanies Act, B??D ( 8 of B??D)@
(d) the *ndian 0ompanies Act, BAB3 (> of BAB3)@
(e) the (egistration of $ransferred 0ompanies &rdinance, BA4D

(24 of BA4D)@ and
(f) an" law corresponding to an" of the Act or the &rdinance

aforesaid and in force in the merged territories or in a %art ; -ate, or
an" part thereof, efore the extension thereto of the *ndian 0ompanies
Act, BAB3( > of BAB3)@
3C
0&9%A+:
!ux !ux . .
Sec =3 De)inition. o) co0-any, e8i.tin5 co0-any, !ri,ate co0-any and

-u1lic co0-any3
.subsection (1) Dcontd.
(iii) Q-ri,ate co0-anyQ means a compan" which, " its articles,

R
(a) restricts the right to transfer its shares, if an"@
() limits the numer of its memers to fift" not including

R
(i) persons who are in the emplo"ment of the compan",

and
(ii) persons who ha!ing een formerl" in the

emplo"ment of the compan", were memers of the compan"
while in that emplo"ment and ha!e continued to e memers
after the emplo"ment ceased@ and
(c) prohiits an" in!itation to the pulic to suscrie for

an" shares in, or deentures of, the compan"@
%ro!ided that where two or more persons hold one or more

shares in a compan" #ointl", the" shall, for the purposes of this
definition, e treated as a single memer@
(i!) Q-u1lic co0-anyQ means a compan" which is not a pri!ate

compan"E
3B
0&9%A+:
- Tn !rc d u c!!c n !c Tn cc m c - Tn !rc d u c!!c n !c Tn cc m c
!u x !u x . .
Section ('3 MODE OF FORMIN INCOR!ORATED COM!ANY
(B) An" se!en or more persons, or where the compan" to e

formed will e a pri!ate compan", an" two or more persons,
associated for an" lawful purpose ma", " suscriing their
names to a memorandum of association and otherwise
compl"ing with the reGuirements of this Act in respect of
registration, form an incorporated compan", with or without
limited liailit"E
(D) -uch a compan" ma" e either R
(a) a compan" ha!ing the liailit" of its memers limited

" the memorandum to the amount, if an", unpaid on the
shares respecti!el" held " them (in its Act termed Qa
compan" limited " sharesQ)@
() a compan" ha!ing the liailit" of its memers limited

" the memorandum to such amount as the memers ma"
respecti!el" underta4e " the memorandum to contriute to
the assets of the compan" in the e!ent of its eing wound up
(in this Act termed K a compan" limited " guaranteeQ)@ or
(c) a compan" not ha!ing an" limit on the liailit" of its

memers (in this Act termed Qan unlimited compan"Q)E
3D
0&9%A+:
!u x !u x . .
DOMlSTTC COMl\NY
lORlTGN COMl\NY
l|llTC SlCTOR COMl\NY
COMl\NY
!n h!ch pub!!c urc
subs!un!!u!!v !n!crcs!cd
TNDT\N
COMl\NY
. Cc c crc!n
cr!!n
. lur!!cr u Cc
. Dcc!urcd u Cc
. Scc ?
( ) !
. Scc ?
( ) ?G
. Scc ?
( ) ??\
. Scc ?
( ) ?8\
. Scc ?
( ) 8G\
. ( ) Scc ? !8
33
0&9%A+:
!u x !u x . .
I3T3Act, (>?( I3T3Act, (>?(
Section ' (''A) do0e.tic co0-any means an *ndian

compan", or an" other compan" which, in respect of its
income liale to tax under this Act, has made the prescried
arrangements for the declaration and pa"ment, within *ndia,
of the di!idends (including di!idends on preference shares)
pa"ale out of such income @
Section BA4E $he principal officer of an *ndian compan" or a compan"

which has made the prescried arrangements for the declaration and
pa"ment of di!idends (including di!idends on preference shares)
within *ndia, shallPPPE
. . T T Ru!c ? . . T T Ru!c ? lrcscr!bcd urruncmcn!s cr dcc!uru!!cn und

puvmcn! c d!v!dcnds !!h!n Tnd!u.
Thc urruncm cn!s rccrrcd !c !n scc!!cns !O4 und ?8G !c bc m udc bv u ccm punv
( cr !hc dcc!uru!!cn und puvm cn! c d!v!dcnds !nc!ud!n d!v!dcnds cn
) : prccrcncc shurcs !!h!n Tnd!u shu!!bc us c!!c s
( ) ! Thc - shurc rc!s!cr c !hc ccm punv cr u!!shurchc!dcrs shu!!bc rcu!ur!v
m u!n!u!ncd u! !!s pr!nc!pu!p!ucc c bus!ncss !!h!n Tnd!u, !n rcspcc! c unv
. usscssm cn! vcur rcm u du!c nc! !u!cr !hun !hc !s! duv c \ pr!!c such vcur
( ) ? Thc cncru!m cc!!n cr puss!n !hc ucccun!s c !hc prcv!cus vcur rc!cvun! !c
!hc usscssm cn! vcur und cr dcc!ur!n unv d!v!dcnds !n rcspcc! !hcrcc shu!!
bc hc!d cn!v u! u p!ucc !!h!n Tnd!u.
( ) 8 Thc d!v!dcnds , , dcc!urcd !unv shu!!bc puvub!c cn!v !!h!n Tnd!u !c u!!
. shurchc!dcrs
34
0&9%A+:
!u x !u x . .
I3T3Act, (>?( I3T3Act, (>?(
Section ('=A) )orei5n co0-any means a compan" which is not

a domestic compan"
Section (=?A) -u1lic .ector co0-any means an" corporation

estalished " or under an" 0entral, -tate or %ro!incial Act or a
,o!ernment compan" as defined in section 8B> of the
0ompanies Act, BA28 (B of BA28) @
, C cm pun!cs \ c! !O5G , C cm pun!cs \ c! !O5G

. ! ! . S c c!!c n G ! D l l TN TT TO N O l G O \ l R N M l N T C O M l\ N Y
, lcr !hc purpcscs c !h!s \ c! G cvcrnm cn! ccm punv m cuns unv ccm punv !n h!ch
- - nc! !css !hun !!v cnc pcr ccn! c !hc pu!d up shurc cup!!u!!s hc!d bv !hc C cn!ru!
, , G cvcrnm cn! cr bv unv S!u!c G cvcrnm cn! cr G cvcrnm cn!s cr pur!!v bv !hc C cn!ru!
G cvcrnm cn! und pur!!v bv cnc cr m crc S!u!c G cvcrnm cn!s und !nc!udcs u ccm punv
h!ch !s u subs!d!urv c u G cvcrnm cn! ccm punv us !hus dc!ncd.
. Scc!!cn 4 Ml\NTNG Ol HOlDTNG COMl\NY \ND S|lSTDT\RY.
( ) , , - ! lcr !hc purpcscs c !h!s \c! u ccmpunv shu!! sub]cc! !c !hc prcv!s!cns c sub
( ), , , $ scc!!cn 8 bc dccmcd !c bc u subs!d!urv c unc!hcr ! bu! cn!v !
( ) u !hu! c!hcr ccn!rc!s !hc ccmpcs!!!cns c !!s lcurd " c d!rcc!crs cr
( ) b !hu! c!hcr hc!ds mcrc !hun hu! !n ncm!nu! vu!uc c !!s cqu!!v shurc cup!!u!" cr
( ) - c !hc !rs! mcn!!cncd ccmpunv !s u subs!d!urv c unv ccmpunv h!ch !s !hu! c!hcr`s
. subs!d!urv
32
0&9%A+:
!ux !ux . .
Section((A) co0-any in +*ic* t*e -u1lic are .u1.tantially

intere.ted E
A compan" is said to e a compan" in which the pulic are sustantiall"

interested
(a) if it is a compan" owned " the ,o!ernment or the (eser!e ;an4 of *ndia
or in which not less than fort" per cent of the shares are held (whether singl"
or ta4en together) " the ,o!ernment or the (eser!e ;an4 of *ndia or a
corporation owned " that an4 @ or
(aa) if it is a compan" which is registered under section D2 of the 0ompanies Act,

BA28 (B of BA28)@ or
(a) if it is a compan" ha!ing no share capital and if, ha!ing regard to its o#ects,
the nature and composition of its memership and other rele!ant
considerations, it is declared " order of the ;oard to e a compan" in which
the pulic are sustantiall" interested 7
%ro!ided that such compan" shall e deemed to e a compan" in which the

pulic are sustantiall" interested onl" for such assessment "ear or assessment
"ears (whether commencing efore the Bst da" of April, BA>B, or on or after that
date) as ma" e specified in the declaration @ or
(ac) if it is a mutual enefit finance compan", that is to sa", a compan" which

carries on, as its principal usiness, the usiness of acceptance of deposits
from its memers and which is declared " the 0entral ,o!ernment under
section 8DCA of the 0ompanies Act, BA28 (B of BA28), to e a +idhi or 9utual
;enefit -ociet" @ or
(ad) if it is a compan", wherein shares (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits)
carr"ing not less than fift" per cent of the !oting power ha!e een allotted
unconditionall" to, or acGuired unconditionall" ", and were throughout the
rele!ant pre!ious "ear eneficiall" held ", one or more co-operati!e
societies @
. . , T T \c! . . , T T \c!
!OG! !OG!
38
0&9%A+:
!ux !ux . .
Section('B) !OFER TO DIS!ENSE FIT% GLIMITEDG IN NAME

OF C%ARITA$LE OR OT%ER COM!ANY3 E
(B) Where it is pro!ed to the satisfaction of the 0entral ,o!ernment that an

association -
(a) is aout to e formed as a limited compan" for promoting

commerce, art, science, religion, charit" or an" other useful o#ect, and
() intends to appl" its profits, if an", or other income in promoting its

o#ects, and to prohiit the pa"ment of an" di!idend to its memers, the
0entral ,o!ernment ma", " licence direct, that the association ma" e
registered as a compan" with limited liailit", without the addition to its
name of the word QLimitedQ or the words Q%ri!ate LimitedQE
(D) $he association ma" thereupon e registered accordingl"@ and on registration shall
en#o" all the pri!ileges, and (su#ect to the pro!isions of this section) e su#ect to
all the oligations, of limited companiesE
(3) Where it is pro!ed to the satisfaction of the 0entral ,o!ernment -
(a) that the o#ects of a compan" registered under this Act as a limited
compan" are restricted to those specified in clause (a) of su-section (B), and
() that " its constitution the compan" is reGuired to appl" its profits, if an",
or other income in promoting its o#ects and is prohiited from pa"ing an" di!idend
to its memers, the 0entral ,o!ernment ma", " licence, authorise the compan" "
a special resolution to change its name, including or consisting of the omission of
the word QLimitedQ or the words Q%ri!ate LimitedQ@ and section D3 shall appl" to a
change of name under this su-section as it applies to a change of name under
section DBE
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE-.;-'0$*&+- 4,2 &
8
, Ccmpun!cs \c! !O5G , Ccmpun!cs \c! !O5G
3>
0&9%A+:
!ux !ux . .
Section((A) co0-any in +*ic* t*e -u1lic are .u1.tantially

intere.ted E
A compan" is said to e a compan" in which the pulic are sustantiall"

interested PPPEE (contdE)
(1) if it is a compan" which is not a pri!ate compan" as defined in the 0ompanies

Act, BA28 (B of BA28), and the conditions specified either in item (A) or in item
(;) are fulfilled, namel" 7
(A) shares in the compan" (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits) were,
as on the last da" of the rele!ant pre!ious "ear, listed in a recognised stoc4
exchange in *ndia in accordance with the -ecurities 0ontracts ((egulation) Act,
BA28 (4D of BA28), and an" rules made thereunder @
(;) shares in the compan" (not eing shares entitled to a fixed rate of
di!idend whether with or without a further right to participate in profits)
carr"ing not less than fift" per cent of the !oting power ha!e een allotted
unconditionall" to, or acGuired unconditionall" ", and were throughout the
rele!ant pre!ious "ear eneficiall" held "
(a) the ,o!ernment, or () a corporation estalished " a 0entral, -tate

or %ro!incial Act, or
(c) an" compan" to which this clause applies or an" susidiar" compan"
of such compan" if the whole of the share capital of such susidiar" compan"
has een held " the parent compan" or " its nominees throughout the
pre!ious "earE
E8-lanation3 *n its application to an *ndian compan" whose usiness consists mainl"

in the con.truction o) .*i-. or in the manufacture or processing of goods or in
mining or in the generation or distriution of electricit" or an" other form of power,
item (;) shall ha!e effect as if for the words not less than fift" per cent, the words
not less than )orty -er cent had een sustituted @
. . , T T \c! . . , T T \c!
!OG! !OG!
3?
0&9%A+:
!ux !ux . .
TNDT\N
COMl\NY
. Cc c crc!n
cr!!n
. lur!!cr u Cc
. Dcc!urcd u Cc
. ( ) S ? ?G rc!s!crcd undcr
ccmpun!cs \c!
YlS
DOlMSTTC
COMl\NY
. ( ) S ? ??\
NO lORlTGN
COMl\NY
. ( ) S ? ?8\
l|llTC SlCTOR
COMl\NY
. ( ) S ? ??\
COMl\NY !n h!ch
pub!!c urc
subs!un!!u!!v
!n!crcs!cd
. ( ) S ? !8
"hc!hcr lRlSCRTllD
/ \RR\NGlMlNTS | R ?
% / ) 4O O"NlRSHTl lY Gcv! RlT
. / . Ncn prc!! Cc u s ?5 c Cc
\c!
& Dcc!urcd bv lcurd nc
cup!!u!
/ . . . . NTDHT M l S u s G?O\ c Cc
\c!
% 5O vc!!n pccr cccp
scc!c!!cs
& Nc! u l\T Cc undcr Cc \c!
% 5O vc!!n pccr hc!d bv
Gcv! c!c
3A
)*(9
!ux !ux . .
Sec3 '('=)(i) )ir0 Sec3 '('=)(i) )ir0 shall ha!e the

meaning assigned to it in the *ndian
%artnership Act, BA3D (A of BA3D),
and shall include a li0ited lia1ility
-artner.*i- as defined in the
Limited Liailit" %artnership Act,
DCC? (8 of DCCA)@
(ii) -artner -artner shall ha!e the meaning

assigned to it in the *ndian
and .*all include,
(a) an" person who, eing a 0inor,

has een ad0itted to t*e 1ene)it.
of partnership@ and
(1) a -artner o) a li0ited lia1ility

-artner.*i- as defined in the
Limited Liailit" %artnership Act,
DCC? (8 of DCCA)@
(iii) -artner.*i- -artner.*i- shall ha!e the

meaning assigned to it in the *ndian
and shall include a li0ited
lia1ility -artner.*i- as defined in
the Limited Liailit" %artnership Act,
DCC? (8 of DCCA)
, Tn d !u n l u r!n c rsh !p \ c! ! O 8 ? , Tn d !u n l u r!n c rsh !p \ c! ! O 8 ?

Scc!!cn 4 DllTNTTTON Ol
! , ! !, l\RTNlRSHTl l\RTNlR
! ! ! - !. lTRM \ND lTRM N\Ml
!lur!ncrsh!p! !s !hc rc!u!!cn
bc!ccn pcrscns hc huvc
urccd !c shurc !hc prc!!s c
u bus!ncss curr!cd cn bv u!!
. cr unv c !hcm uc!!n cr u!!
lcrscns hc huvc cn!crcd !n!c
pur!ncrsh!p !!h cnc unc!hcr
, urc cu!!cd !nd!v!duu!!v
!pur!ncrs! und ! cc!!cc!!vc!v u
!rm!, und !hc numc undcr
h!ch !hc!r bus!ncss !s
! - curr!cd cn !s cu!!cd !hc !rm
!. numc
4C
)*(9
!ux !ux . .
Sec3 '('= Sec3 '('=(i) firm shall ha!e the (i) firm shall ha!e the
meaning assigned to it in the meaning assigned to it in the
*ndian %artnership Act, BA3D (A of *ndian %artnership Act, BA3D (A of
BA3D), and shall include a limited BA3D), and shall include a limited
liailit" partnership as defined in liailit" partnership as defined in
the Limited Liailit" %artnership the Limited Liailit" %artnership
Act, DCC? (8 of DCCA)@ Act, DCC? (8 of DCCA)@
THl THl lTMTTlD lTMTTlD lT\lTlTTY lT\lTlTTY l\RTNlRSHTl l\RTNlRSHTl , \CT, \CT ?OO8 ?OO8
Nu!urc c !!m!!cd !!ub!!!!v pur!ncrsh!p
. ( ) Scc 8 ! \ !!m!!cd !!ub!!!!v pur!ncrsh!p !s u bcdv ccrpcru!c
crmcd und !nccrpcru!cd undcr !h!s \c! und !s u !cu! cn!!!v
. scpuru!c rcm !hu! c !!s pur!ncrs
( ) ? : \ !!m!!cd !!ub!!!!v pur!ncrsh!p shu!! huvc pcrpc!uu! succcss!cn
\nv chunc !n !hc pur!ncrs c u !!m!!cd !!ub!!!!v pur!ncrsh!p shu!!
, nc! ucc! !hc cx!s!cncc r!h!s cr !!ub!!!!!cs c !hc !!m!!cd
. !!ub!!!!v pur!ncrsh!p
. Scc 4 , Suvc us c!hcr!sc prcv!dcd !hc prcv!s!cns c !hc Tnd!un
, lur!ncrsh!p \c! !O8? shu!! nc! upp!v !c u !!m!!cd !!ub!!!!v
. pur!ncrsh!p
4B
)*(9
!ux !ux . .
Sec3 '('= Sec3 '('=(i) firm shall ha!e the meaning (i) firm shall ha!e the meaning
assigned to it in the *ndian %artnership Act, assigned to it in the *ndian %artnership Act,
BA3D (A of BA3D), and shall include a limited BA3D (A of BA3D), and shall include a limited
liailit" partnership as defined in the Limited liailit" partnership as defined in the Limited
Liailit" %artnership Act, DCC? (8 of DCCA)@ Liailit" %artnership Act, DCC? (8 of DCCA)@
THl THl lTMTTlD lTMTTlD lT\lTlTTY lT\lTlTTY l\RTNlRSHTl l\RTNlRSHTl , \CT, \CT ?OO8 ?OO8
& Dc!n!!!cn c lcdv Ccrpcru!c l!m!!cd l!ub!!!!v lur!ncrsh!p
. ( ) ! ! Scc ? d bcdv ccrpcru!c mcuns u ccmpunv us dc!ncd !n scc!!cn 8
, c !hc Ccmpun!cs \c! !O5G und !nc!udcs-
( ) ! u !!m!!cd !!ub!!!!v pur!ncrsh!p " rc!s!crcd undcr !h!s \c!
( ) " !! u !!m!!cd !!ub!!!!v pur!ncrsh!p !nccrpcru!cd cu!s!dc Tnd!u und
( ) , !!! u ccmpunv !nccrpcru!cd cu!s!dc Tnd!u
- bu! dccs nc! !nc!udc
( ) " ! ccrpcru!!cn sc!c
( ) - !! u cc cpcru!!vc scc!c!v rc!s!crcd undcr unv !u cr !hc !!mc bc!n !n
" crcc _und
( ) ( !!! unv c!hcr bcdv ccrpcru!c nc! bc!n u ccmpunv us dc!ncd !n scc!!cn 8
, c !hc Ccmpun!cs \c! !O5G cr u !!m!!cd !!ub!!!!v pur!ncrsh!p us dc!ncd !n
), , !h!s \c! h!ch !hc Ccn!ru! Gcvcrnmcn! muv bv nc!!!cu!!cn !n !hc O!c!u!
, Guzc!!c spcc!v !n !h!s bchu!
( ) ! ! n !!m!!cd !!ub!!!!v pur!ncrsh!p mcuns u pur!ncrsh!p crmcd und
rc!s!crcd
undcr !h!s \c!
. ( ) Scc 8 ! \ !!m!!cd !!ub!!!!v pur!ncrsh!p !s u bcdv ccrpcru!c crmcd
und !nccrpcru!cd undcr !h!s \c! und !s u !cu! cn!!!v scpuru!c rcm !hu! c
. !!s pur!ncrs
4D
)*(9
!ux !ux . .
Characteristics
- D essential features7 (i) agreement to share
the profit or loss, & (ii) each partner acting
as the agent of another ..[1962] 46
I! 492 ("o#)
- &wning of propert" not reGuiredEEE [197$] 91
I! 412, 41% (&'d)
- 9ore than one firm with same partners
distinct identities . [196(]70 I! (4$
-
. lr!nc!p!cs !u!d dcn bv \l H!h Ccur! !n CTT vs G

& [ ] lur!husur!hv Nu!du scns !O8O !?! TTR O
- l!rm nc! cn!!!!cd !c cn!cr !n!c pur!ncrsh!p !!h unc!hcr !rm cr
!nd!v!duu!
- Scpuru!c !dcn!!!v !n T T \c!
- ( ) Cun bc uscd cr rcduc!n !ux !!ub!!!!v us pcr !OG4 58 TTR ?O4
- "hc!hcr u !rm !s cnu!nc cr bcus !s u mu!!cr c uc!s
-
-
l\RTNlRS OlJlCTT\l lTRM
&
'
43
)*(9
!ux !ux . .
RlGTSTlRlD lTRM
( ) |NRlGTSTlRlD
lTRM
RlGTSTR\TTON
|ndcr !hc
. . , T T \c! Scc
, !84 !85
&
. . - T T Ru!cs ?? ?5
|ndcr !hc
Tnd!un
lur!ncrsh!
p \c!
Rcs!r!c!!cn cn
!!!n !u
su!!s
. . . . Scc GO T l \
Rcs!r!c!!cns cn
c!u!m!n
ccr!u!n
dcduc!!cns cn
ucccun! c
puvmcn!s mudc
!c pur!ncrs
Scc !85
RlGTSTlRlD lTRM
( ) |NRlGTSTlRlD
lTRM
|ndcr !hc
l!m!!cd
l!ub!!!!v
lur!ncrsh!p
\c!
RlGTSTlRlD lTRM
44
A&% 1 ;&*
!ux !ux . .
Sec3 '(=( Sec3 '(=() ) (v n sso t on o

p rsons or o o n v u ls
# t r n orpor t or not
: Churuc!cr!s!!cs
- ..[ ] ( ) Ccmmcn purpcsc cr ccmmcn cuusc mus! cx!s! !O88 !48 TTl !G \!!
- ..[ ] ( ) l!cmcn!s c vc!!!!cn csscn!!u! !O8 88 TTR 48? SC
- ( . .. ) \cc!dcn!u! cr !cu! ccmb!nu!!cn !s nc! lOT c Hc!rs rccc!v!n !nhcr!!uncc
[ ] ( .) !O8 !G4 TTR 8G Mud
- ..[ ] ( ) l!cmcn! c ]c!n! vcn!urc mus! cx!s! !OGG 5O TTR ?8 SC
- ..[ ] ( .) lcdv cn!rus!cd !c rccc!vc !nccmc und d!spcsc !! !s lOT !O84 !45 TTR 8?8 |ur
- .[ ] ( .) Ccn!!nucus bus!ncss vcn!urc nc! csscn!!u! !OO ?? TTR 5!? Guu
Ccmpun
v
l!r
m
- \Ol !s nc! d!s!!nc! und scpuru!c rcm lOT lOT ccns!s!s c nu!uru! pcrscns cn!v
. . lOT muv !ukc !n nu!uru! us c!! us ur!!!c!u! pcrscns & . . [ ] Mccru Cc vs CTT !OO
( ) ??4 TTR G85 SC
42
A&% 1 ;&*
!ux !ux . .
INSTANCES OF AOP
)irms attempted to e formed, ut not a firm due to some
in!alidit" P (BA8?) 8>*$( BC8 (-0)
9emers of erstwhile /.) continuing to run a !enture after
partition of /.) P (BA4C) ? *$( BB4 (-ind)
/eirs #ointl" running inherited usiness (not /.)) EEE (BA82)
22 *$( 8AD (9adE)
9ore than one 0ompanies #ointl" running a #oint !enture P
(BA8?) 8> *$( >>B (0al)
D persons purchasing a land in #oint names and running a
cinema on it P (BA?D)B3? *$( ?CB (All)
'rstwhile partners of a dissol!ed firm with a common
enterprise P (BA?2) B2D *$( 2>8 (9ad)
6oint acti!it" of two persons in smuggling P (BA?2) B23 *$(
38C (9ad)
%artners of a firm #ointl" running an enterprise other than that
stated in their partnership deed P (BAA4) >8 $axman BDA
(0al)
48
L&0AL A.$/&(*$:
!ux !ux . .
,eneral 0lauses Act, B?A> ,eneral 0lauses Act, B?A>
Sec3 =(=() Hlocal aut*orityI shall

mean a municipal committee, district
oard, od" of port commissioners or
other authorit" legall" entitled to, or
entrusted " the ,o!ernment with,
the control or management of a
municipal or local fund@
( l\NCH\Y\TT R\J TNSTTT|TTONS '''

( ( ) , Scc 8 h c c D!sus!cr munucmcn! \c! ?OO5
(! ! !ccu! uu!hcr!!v !nc!udcs punchuvu!! ru] !ns!!!u!!cns, , mun!c!pu!!!!cs u d!s!r!c!
, , bcurd cun!cnmcn! bcurd !cn p!unn!n uu!hcr!!v cr /!!u lur!shud cr unv c!hcr bcdv
, , , cr uu!hcr!!v bv hu!cvcr numc cu!!cd cr !hc !!mc bc!n !nvcs!cd bv !u cr
, , rcndcr!n csscn!!u! scrv!ccs cr !!h !hc ccn!rc! und munucmcn! c c!v!c scrv!ccs
" !!h!n u spcc!!cd !ccu! urcu
( , Scc 8 c Cu!!!c Trcsspuss \c! !8!
(! ! !ccu! uu!hcr!!v mcuns unv bcdv c pcrscns cr !hc !!mc bc!n !nvcs!cd bv !u !!h
!hc ccn!rc! und udm!n!s!ru!!cn c unv mu!!crs !!h!n u spcc!!cd !ccu! urcu
( Dc!n!!!cn c !ccu! uu!hcr!!v !n Gcncru! C!uuscs \c! dccs nc! !nc!udc lunchuvu!!
. , , Ru] Tns!!!u!!cns \c!pur Grum lunchuvu! v \ss!! D!rcc!cr c Murkc!!n Gun!ur \TR
!OO8 \l !4?
( ) Rccrcncc !n Scc !O ?O [ ] nc dc!c!cd , ( ) & ( ) !4O d ?8? ?
( ) b
4>
A(*)*0*AL 6.(*D*0AL %'(-&+
!ux !ux . .
+ot defined in *$ Act
(eference usuall" to an
aggregate of propert"
and income arising to
an identit" not co!ered
under other clauses
-
- \ H!ndu !dc! !s u ]ur!s!!c pcrscn cupub!c c hc!d!n prcpcr!v und
c bc!n !uxcd !hrcuh !!s shcbu!!s hc urc cn!rus!cd !!h !hc
pcsscss!cn und !hc munucmcn! c !hc prcpcr!v
.. . ( ( ) Jccnru Nu!h Nuskur v CTT !OGO 4 TTR 88 SC
4?
%('=*&.- :'A( 1 A--'--9'+$ :'A(
!ux !ux . .
Sec = !re,iou. year

de)ined3
3E )or the purposes of this Act,

pre!ious "ear means the
financial "ear immediatel"
preceding the assessment
"ear 7
%ro!ided that, in the case of a

usiness or profession
newl" set up, or a source of
income newl" coming into
existence, in the said
financial "ear, the pre!ious
"ear shall e the period
eginning with the date of
setting up of the usiness
or profession or, as the case
ma" e, the date on which
the source of income newl"
comes into existence and
ending with the said
financial "earE
Scc ?
( ) 84
Scc 8
-
( ) Scc ? O usscssmcn! vcur
mcuns !hc pcr!cd c !c!vc
mcn!hs ccmmcnc!n cn !hc !s!
" duv c \pr!! cvcrv vcur
4A
%('=*&.- :'A( 1 A--'--9'+$ :'A(
!ux !ux . .
Sec 9 C*ar5e o) inco0e/ta83
(B) Where an" 0entral Act enacts that income-tax shall e

charged for an" assessment "ear at an" rate or rates,
income-tax at that rate or those rates shall e charged
for that "ear in accordance with, and su#ect to the
pro!isions (including pro!isions for the le!" of additional
income-tax) of, this Act in respect of the total income of
the pre!ious "ear of e!er" person 7
%ro!ided that where " !irtue of an" pro!ision of this Act

income-tax is to e charged in respect of the income of
a period other than the pre!ious "ear, income-tax shall
e charged accordingl"E
(D) *n respect of income chargeale under su-section (B),

income-tax shall e deducted at the source or paid in
ad!ance, where it is so deductile or pa"ale under an"
pro!ision of this ActE
l!nunc!u!\ c!
. .. c
, Scc !58l
Scc
( ) !4 !
, lur! ! l!rs!
schcdu!c c
l!nuncc \ c!
2C
*+0&9'
!ux !ux . .
Scc !4
Hl\DS Ol
TNCOMl
S\l\RTlS S\l\RTlS
HO|Sl lROllRTY HO|Sl lROllRTY
l|STNlSS OR l|STNlSS OR
lROllSSTON lROllSSTON
C\lTT\l G\TNS C\lTT\l G\TNS
OTHlR SSO|RClS OTHlR SSO|RClS
Scc !
Scc 5G
Scc 45
Scc ?8
Scc ??
( ) Scc ? ?4
2B
*+0&9'
!ux !ux . .
&%'+*+, -$&0S BCC
%.(0/A-'- DCC
'L'0$(*0*$: BCC
,(&-- %(&)*$ BCC
------
2CC
------
S\ ll R lC lTlTS 8OO
C lO STN G STO C | ?OO
------
5OO
------
. Rs . Rs
S\l\RTlS 8O
RlNT ?O
TR\\lllTNG !O
OllTCl l\llNSlS !O
NlT lROlTT 4O
------
!!O
GROSS lROlTT !OO
TNTlRlST ON l\Tl l\YMlNTS !O
-------
!!O
TR TR
\D \D
TN TN
G G
/ \/ \
C C
l l
& &
l l
\C \C
CO CO
|N |N
T T
/ & Nc! prc!! us pcr ucccun!!n bccks muv bc d!crcn! rcm !hc prc!!
u!ns rccrrcd !n TT \c! us ccr!u!n cxpcnscs c!umcd muv nc! bc u!!cub!c us
. dcduc!!cn
2D
('$.(+ &) *+0&9'
!ux !ux . .
Rc!urn c !nccmc
( ) Scc!!cn !8O ! , lvcrv pcrscn ! h!s !c!u! !nccmc cr !hc
!c!u! !nccmc c unv c!hcr pcrscn !n rcspcc! c h!ch hc !s
usscssub!c undcr !h!s \c! dur!n !hc prcv!cus vcur cxcccdcd !hc
- , , mux!mum umcun! h!ch !s nc! churcub!c !c !nccmc !ux shu!! cn
, cr bccrc !hc duc du!c urn!sh u rc!urn c h!s !nccmc cr !hc
!nccmc c such c!hcr pcrscn dur!n !hc prcv!cus vcur, !n !hc
prcscr!bcd crm und vcr!!cd !n !hc prcscr!bcd munncr und
. sc!!!n cr!h such c!hcr pur!!cu!urs us muv bc prcscr!bcd
- Ru!c !? Rc!urn c !nccmc
und Rc!urn c lr!nc
bcnc!!s
- TTR ! TO
8
23
A-'--9'+$
!ux !ux . .
( ) Scc !8O !
Scc ?
( ) 8
24
A-'--9'+$
!ux !ux . .
Sec ' (A) a..e..0ent include.

rea..e..0ent 2
( ) S c c ! 4 8 8
( ) - 8 On !hc duv spcc!!cd !n !hc nc!!cc
( ) ( ) - ( ), ! !ssucd undcr c!uusc ! c sub scc!!cn ? cr us sccn
, u!crurds us muv bc u!cr hcur!n such cv!dcncc und u!cr
!uk!n !n!c ucccun! such pur!!cu!urs us !hc usscsscc muv
, prcducc !hc \sscss!n O!ccr shu!!, bv un crdcr !n r!!!n,
u!!c cr rc]cc! !hc c!u!m cr c!u!ms spcc!!cd !n such nc!!cc
und mukc un usscssmcn! dc!crm!n!n !hc !c!u! !nccmc cr !css
, ucccrd!n!v und dc!crm!nc !hc sum puvub!c bv !hc usscsscc cn
. ................ !hc bus!s c such usscssmcn!
Scc ? ( ) 4O rcu!ur usscssmcn! mcuns !hc usscssmcn! mudc
( ) " undcr subscc!!cn 8 c scc!!cn !48 cr scc!!cn !44
22
A-'--9'+$
!ux !ux . .

rea..e..0ent 2
. ! 4 4 l c s! ]u d m c n ! u ssc ssm c n !
Scc !44 ( ) ! - T unv pcrscn
( ) u u!!s !c mukc !hc rc!urn - ( ) rcqu!rcd undcr sub scc!!cn ! c
scc!!cn !8O und hus nc! mudc u rc!urn cr u rcv!scd rc!urn undcr
( ) - ( ) , subscc!!cn 4 cr sub scc!!cn 5 c !hu! scc!!cn cr
( ) b u!!s !c ccmp!v !!h u!! !hc !crms c u nc!!cc !ssucd undcr
subscc!!cn ( ) ! c scc!!cn !4? cr u!!s !c ccmp!v !!h u d!rcc!!cn
- ( ) , !ssucd undcr sub scc!!cn ?\ c !hu! scc!!cn cr
( ) c , huv!n mudc u rc!urn u!!s !c ccmp!v !!h u!! !hc !crms c u
nc!!cc - !ssucd undcr sub scc!!cn ( ) ? c scc!!cn !48,
Thc \sscss!n O!ccr, u!cr !uk!n !n!c ucccun! u!! rc!cvun!
, , mu!cr!u! h!ch !hc \sscss!n O!ccr hus u!hcrcd shu!! u!cr
, !v!n !hc usscsscc un cppcr!un!!v c bc!n hcurd mukc !hc
usscssmcn! c !hc !c!u! !nccmc cr !css !c !hc bcs! c h!s
]udmcn! und dc!crm!nc !hc sum puvub!c bv !hc usscsscc cn !hc
: bus!s c such usscssmcn!
28
A-'--9'+$
!ux !ux . .

rea..e..0ent 2
Tn cc m c c scu p !n u ssc ssm c n !
S c c ! 4 . T!hc \sscss!n O!ccr hus rcuscn !c bc!!cvc !hu!
unv !nccm c churcub!c !c !ux hus cscupcd usscssm cn! cr unv
, , usscssm cn! vcur hc m uv sub]cc! !c !hc prcv!s!cns c scc!!cns
, !48 !c !58 u ssc ss c r rc u ssc ss such !nccm c und u!sc unv
c!hcr !nccm c churcub!c !c !ux h!ch hus cscupcd usscssm cn!
und h!ch ccm cs !c h!s nc!!cc subscqucn!!v !n !hc ccursc c
, !hc prccccd!ns undcr !h!s scc!!cn cr rcccm pu!c !hc !css cr
, !hc dcprcc!u!!cn u!!c uncc cr unv c!hcr u!!c uncc us !hc cusc
, ( m uv bc cr !hc usscssm cn! vcur ccnccrncd hcrcu!cr !n !h!s
scc!!cn und !n scc!!cns !48 !c !58 rccrrcd !c us !hc rc!cvun!
): usscssm cn! vcur ..
2>
A-'--9'+$
!ux !ux . .

rea..e..0ent 2
- S c ! u ssc ssm c n !
S c c ! 4 O \ ( ) ! "hcrc unv !ux !spuvub!c cn !hc bus!s c unv

rc!urn rcqu!rcd !c bc urn!shcd undcr scc!!cn !8O cr scc!!cn
, , , !4? cr us !hc cusc m uv bc scc!!cn !48 u!cr !uk!n !n!c
, , ucccun! !hc um cun! c !ux ! unv u!rcudv pu!d undcr unv
, prcv!s!cn c !h!s \ c! !hc usscsscc shu!!bc !!ub!c !c puv such
!ux !cc!hcr !!h !n!crcs! puvub!c undcr unv prcv!s!cn c !h!s
\ c! cr unv dc!uv !n urn!sh!n !hc rc!urn cr unv dcuu!! cr
, dc!uv !n puvm cn! c udvuncc !ux bccrc urn!sh!n !hc rc!urn
und !hc rc!urn shu!!bc ucccm pun!cd bv prcc c puvm cn! c
such !ux und !n!crcs!.
2?
A-'--9'+$
!ux !ux . .

rea..e..0ent 2
l rc cc ss!n c R c !u rn
( ) Scc !48 ! , "hcrc u rc!urn hus bccn mudc undcr scc!!cn !8O cr
- ( ) , !n rcspcnsc !c u nc!!cc undcr sub scc!!cn ! c scc!!cn !4?
:- such rc!urn shu!! bc prcccsscd !n !hc c!!c!n munncr numc!v
( ) u Thc !c!u! !nccmc cr !css shu!! bc ccmpu!cd u!cr muk!n !hc
c!!c!n ud]us!mcn!s :- numc!v
( ) " ! unv ur!!hmc!!cu! crrcr !n !hc rc!urn cr
( ) , !! un !nccrrcc! c!u!m ! such !nccrrcc! c!u!m !s
" uppurcn! rcm unv !ncrmu!!cn !n !hc rc!urn
( ) d \n !n!!mu!!cn shu!! bc prcpurcd cr cncru!cd und scn! !c

!hc usscsscc
( ) c Thc umcun! c rcund .. duc !c !hc usscsscc shu!! bc
. run!cd
2A
T\\
RlT|RN Ol TNCOMl
cr !hc
/ \SSlSSMlNT Yl\R lRl\TO|S Yl\R
\SSlSSll
\SSlSSMlNT c TNCOMl
A-'--9'+$
- Tn!rcduc!!cn !c Tnccmc !ux - Tn!rcduc!!cn !c Tnccmc !ux . .
llG\l
RllRlSlNT\TT\l
lROClSSTNG Ol RlT|RN
Rl\SSlSSMlNT c TNCOMl
lOO|S Ol
\CCO|NTS
DOC|MlNTS
Slll
\SSlSSMlN
T
Scc ?
( ) ?O
Scc ?
( ) ?O
\|THORTSlD
RllRlSlNT\TT\l
Scc ?88
( ) ?
Scc ?
( ) ??\\
8C
A-'--9'+$
!ux !ux . .
Sec ' ('>) le5al re-re.entati,e has the meaning assigned

to it in clause (BB) of section D of the 0ode of 0i!il %rocedure,
BAC? (2 of BAC?)
Code o) Ci,il !rocedure, (>6A Code o) Ci,il !rocedure, (>6A
Sec ' ((() Gle5al re-re.entati,eG means a person who in law

represents the estate of a decea.ed -er.on, and includes an"
person who intermeddles with the estate of the deceased and
where a part" sues or is sued in a representati!e character the
person on whom the estate de!ol!es on the death of the part" so
suing or sued@

( ) Scc ? !?\ bccks cr bccks c ucccun! , - !nc!udcs !cdcrs duv
, , - , bccks cush bccks ucccun! bccks und c!hcr bccks hc!hcr kcp! !n
- , !hc r!!!cn crm cr us pr!n! cu!s c du!u s!crcd !n u !cppv
, - d!sc !upc cr unv c!hcr crm c c!cc!rc munc!!c du!u s!cruc
" dcv!cc
( ) Scc ? ??\\ dccumcn! !nc!udcs un c!cc!rcn!c rcccrd us dc!ncd
( ) - ( ) !n c!uusc ! 8 c sub scc!!cn ! c scc!!cn ? c !hc Tncrmu!!cn
, ( )" Tcchnc!cv \c! ?OOO ?! c ?OOO
8B
A.$/&(*-'D ('%('-'+$A$*='
!ux !ux . .
Sec 'AA3 (() An" assessee who is entitled or reGuired to attend

efore an" income-tax authorit" or the Appellate $riunal in
connection with an" proceeding under this Act otherwise than
when reGuired under section B3B to attend personall" for
examination on oath or affirmation, ma", su#ect to the other
pro!isions of this section, attend " an authorised
representati!eE
(') )or the purposes of this section, Qaut*ori.ed

re-re.entati,eQ means a person authorised " the assessee in
writing to appear on his ehalf, eing-
(i) a person related to the assessee in an" manner, or a person

regularl" emplo"ed " the assessee@ or
(ii) an" officer of a scheduled an4 with which the assessee

maintains a current account or has other regular dealings@ or
(iii) an" legal practitioner who is entitled to practise in an" ci!il

court in *ndia@ or
(i!) an accountant@ or
. - lxp!unu!!cn , ! Tn !h!s scc!!cn ucccun!un!! mcuns u chur!crcd ucccun!un!
, ( ), !!h!n !hc mcun!n c !hc Chur!crcd \cccun!un!s \c! !O4O 88 c !O4O und
!nc!udcs, , !n rc!u!!cn !c unv S!u!c unv pcrscn hc bv v!r!uc c !hc prcv!s!cns
- ( ) , ( ), c sub scc!!cn ? c scc!!cn ??G c !hc Ccmpun!cs \c! !O5G ! c !O5G !s
cn!!!!cd !c bc uppc!n!cd !c uc! us un uud!!cr c ccmpun!cs rc!s!crcd !n !hu!
. S!u!c
, Chur!crcd \cccun!un!s \c! !O4O , Chur!crcd \cccun!un!s \c! !O4O
( )( ) Scc!!cn ? ! b ( )( ) Scc!!cn ? ! b ! ! chur!crcd ucccun!un! mcuns u pcrscn hc !s u mcmbcr c
"! !hc Tns!!!u!c
8D
A.$/&(*-'D ('%('-'+$A$*='
!ux !ux . .
Sec 'AA3 (D) )or the purposes of this section, Qaut*ori.ed

re-re.entati,eQ meansEE
(!) an" person who has passed an" accountanc" examination

recognised in this ehalf " the ;oard-,I or
(!i) an" person who has acGuired such educational Gualifications

as the ;oard ma" prescrie for this purpose@ or
(!ia)an" person who, efore the coming into force of this Act in
the .nion territor" of Dadra and +agar /a!eli, ,oa, Daman
and Diu, or %ondicherr", attended efore an income-tax
authorit" in the said territor" on ehalf of an" assessee
otherwise than in the capacit" of an emplo"ee or relati!e of
that assessee@ orO
(!ii) an" other person who, immediatel" efore the

commencement of this Act, was an income-tax practitioner
within the meaning of clause (i!) of su-section (D) of section
8B of the *ndian *ncome-tax Act, BADD (BB of BADD), and was
actuall" practising as suchE
83
$A<
!ux !ux . .
84
$A<
!ux !ux . .
82
$A<
!ux !ux . .
88
$A<
!ux !ux . .
\SSlSSll
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referred to in section 2, computed in the manner laid down in
this Act
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- ( ) , Tnd!u !!h!n !hc m cun!n c sub scc!!cn G c scc!!cn G !hc
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referred to in section 2, computed in the manner laid down in
this Act
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C%A!TER #I A DED"CTIONS IN RES!ECT OF

CERTAIN INCOME
Sec A6$ In t*i. c*a-ter /
(B) G5ro.. total inco0eG means the total income

computed in accordance with the pro!isions of this Act,
efore ma4ing an" deduction under this 0hapter
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Sec ' (=6) non/re.ident means a person who is not a

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within the meaning of clause (8) of section 8 @
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FORMS
NOTIFICATIONS
CIRCULARS
CASE LAWS
>>
('$.(+ &) *+0&9'
Sec (=> (() '!er" person,

(a)eing a compan" or a firm@ or
() eing a person other than a compan" or a firm, i) his

total inco0e or the total income of an" other person
in respect of which he is assessale under this Act
durin5 t*e -re,iou. year exceeded the maximum
amount which is not chargeale to income-tax, shall,
on or efore the due date, )urni.* a return o) *i.
inco0e or the income of such other person during the
pre!ious "ear, in the -re.cri1ed )or0 and ,eri)ied
in t*e -re.cri1ed 0anner and .ettin5 )ort* .uc*
ot*er -articular. a. 0ay 1e -re.cri1ed 7
. .
Sec 2 (33) prescribed means prescribed by rules made under this Act ;
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('$.(+ &) *+0&9'
Rule ('3 (() $he return o) inco0e reKuired to 1e )urni.*ed

under su-section (B) or su-section (3) or su-section (4A) or
su-section (4;) or su-section (40) or su-section (4D) of
section (=> or clause (i) of su-section (B) of section (9' or
su-section (B) of section (9A or section (B=A or the return of
fringe enefits reGuired to e furnished under su-section (B) or
su-section (D) of section ((BFD relating to the assessment
"ear commencing on the Bst da" of April, DCC? .*all,
(a) in the case of a person eing an indi,idual where the total

inco0e include. income chargeale to income-tax under the
head Salarie. or income in the nature of )a0ily -en.ion as
defined in the 'xplanation to clause (iia) of section 2> ut doe.
not include any ot*er inco0e e8ce-t inco0e 1y +ay o)
intere.t chargeale to income-tax under the head *ncome from
other sources, e in For0 No3 ITR/( and e *erified in t+e
#'nner indic'ted t+erein@
() in the case of a person eing an indi,idual not 1ein5 an

indi,idual to +*o0 clau.e (a) a--lie. or a %indu
undi,ided )a0ily where the total inco0e doe. not include
any inco0e c*ar5ea1le to inco0e/ta8 under t*e *ead
!ro)it. and 5ain. o) 1u.ine.. or -ro)e..ion, e in For0
No3 ITR/' and e *erified in t+e #'nner indic'ted t+erein,
. .
prescribed form
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RULE 12 (1) (a) ...............................verified in the manner indicated therein
prescribed form
?B
('$.(+ &) *+0&9'

(a) eing a compan" or a firm@ or
() eing a person other than a compan" or a firm, i) his total inco0e or t*e
total inco0e o) any ot*er -er.on in re.-ect o) +*ic* *e
i. a..e..a1le under t*i. Act durin5 t*e -re,iou. year exceeded
the maximum amount which is not chargeale to income-tax, shall, on or
efore the due date, )urni.* a return o) *i. inco0e or the income of such
other person during the pre!ious "ear, in the -re.cri1ed )or0 and ,eri)ied
in t*e -re.cri1ed 0anner and .ettin5 )ort* .uc* ot*er -articular. a.
0ay 1e -re.cri1ed 7
. .
( ss ss m ns p rson # om n t x
or n ot r sum o mon s p l un r
t s t n n lu s
( v r p rson # o s m to n
ss ss un r n prov s on o t s t
, - ./ 0 0 ,1 2 0
0 0 - - 2, , /
Sec !" # RE$RESENTATIVE ASSESSEE
Sec !3 # A%ENT
Sec !& # E'E(UTOR
Sec )" # SU((ESSOR
( ) - u \cn! c u ncn rcs!dcn!
( ) / b Guurd!un Munucr c
/ / m!ncr !unu!!c !d!c!
( ) / c Ccur! c urds
/ \dm!n!s!ru!cr Gcncru!
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( ) ( d Trus!cc !rus! !!h
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( ) ( ) c Trus!cc cru! !rus!
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('$.(+ &) *+0&9'

(a) eing a compan" or a firm@ or
() eing a person other than a compan" or a firm, i) his total inco0e or the total
income of an" other person in respect of which he is assessale under this Act
durin5 t*e -re,iou. year exceeded the maximum amount which is not
chargeale to income-tax, shall, on or efore the due date, )urni.*
a return o) *i. inco0e or the income of such other person during the
pre!ious "ear, in the -re.cri1ed )or0 and ,eri)ied in t*e -re.cri1ed
0anner and .ettin5 )ort* .uc* ot*er -articular. a. 0ay 1e -re.cri1ed
7
. .
xpl n t on n t s su s t on u t
m ns
( # r t ss ss s ( omp n or
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ounts r r 3u r to u t
un r t s t or un r n ot r l #
or t t m n n or or (
#or n p rtn r o rm # os ounts
r r 3u r to u t un r t s
t or un r n ot r l # or t t m
n n or t t o
pt m r o t ss ssm nt r
(substituted by Finance Act 2008, !e!"! #!$!2008%
(b) **+
( n t s o n ot r ss ss t
st o Jul o t ss ssm nt r
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One by six scheme
...u t! "# 2$$%&$'
Every c!. ( firm t! fi)e return
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut
+ivin+ effect t! Exemti!ns u(s 1$"- 1$/- 1$/"
!r deducti!n u( 0ha 12 " e&ceeds a'(unt
n(t c)a*+eab,e t( ta&
$rovided also that every person% being an individual or a &indu undivided family or
an association of persons or a body of individuals% 'hether i-corpor./ed or -o/% or
an artificial (uridical person% if 0is /o/.l i-come or the total income of any other
person in respect of 'hich he is assessable under this Act during the previous year%
1i/0ou/ 2i3i-2 effec/ /o /0e pro3isio-s of sec/io- "A or sec/io- "4 or
sec/io- "4A or (0.p/er VI5A e6ceeded /0e m.6imum .mou-/ 10ic0 is -o/
c0.r2e.ble /o i-come5/.6% shall% on or before the due date% fur-is0 . re/ur- of
his income or the income of such other person during the previous year% in the
prescribed form and verified in the prescribed manner and setting forth such other
particulars as may be prescribed.
?4
('$.(+ &) *+0&9'
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(!\ (!\
) )
*i)in+ !f return by sa)aried em)!yees thr!u+h em)!yer
Schcmc cr bu!k
!!!n c rc!urns
bv su!ur!cd
, cmp!cvccs ?OO?
Schcmc c !!!n
c rc!urns bv
su!ur!cd cmp!cvccs
, !hrcuh cmp!cvcr
?OO4
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) )
E 3 fi)in+ !f return
l!cc!rcn!c urn!sh!n c rc!urns c
!nccmc schcmc ?OO
( ) 8 ( ) 8
Return t! be fi)ed f!r carryin+ f!r.ard a LO44 under 56r!fits
7 +ains fr!m business 7 r!fessi!n8 !r 5caita) +ains8
Sec &"+ )ot'ithstanding anything contained in this *hapter% -o loss 10ic0 0.s
-o/ bee- de/ermi-ed i- pursu.-ce of . re/ur- filed i- .ccord.-ce 1i/0 /0e
pro3isio-s of sub5sec/io- (3) of sec/io- 3,7 s0.ll be c.rried for1.rd and set
off under sub"section +#, of section -. or sub"section +., of section -/ or sub"
section +#, or sub"section +/, of section -0 or sub"section +/, of section -0A.
Loss u-der 89ouse proper/:; <<

u=s )4 <<
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('$.(+ &) *+0&9'
. .
(!\ (!\
) )
*i)in+ !f return by sa)aried em)!yees thr!u+h em)!yer
Schcmc cr bu!k
!!!n c rc!urns
bv su!ur!cd
, cmp!cvccs ?OO?
Schcmc c !!!n
c rc!urns bv
su!ur!cd cmp!cvccs
, !hrcuh cmp!cvcr
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) )
E 3 fi)in+ !f return
l!cc!rcn!c urn!sh!n c rc!urns c
!nccmc schcmc ?OO
( ) 8 ( ) 8
Return t! be fi)ed f!r carryin+ f!r.ard a LO44 under 56r!fits
7 +ains fr!m business 7 r!fessi!n8 !r 5caita) +ains8
( ) 4 ( ) 4 -ELATE. RETURN
U t! !ne year fr!m the end !f re)evant "# !r assessment
C / F LOSS RETURN
(4\ (4\
) )
C0ARITA-LE TRUST
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut +ivin+
effect t! 4ec 11 7 12 e&ceeds 'a& a'(unt n(t ta&ab,e
(4l (4l
) )
1OLITICAL 1ART2
*i)in+ !f return re,d- i" TOTAL INCOME .ith!ut +ivin+
effect t! 4ec 19" e&ceeds 'a& a'(unt n(t ta&ab,e
?8
('$.(+ &) *+0&9'
. .
(4C (4C
) )
(4D (4D
) )
( ) 5 ( ) 5
( ) G ( ) G
In"(*'ati(n t(
be "u*nis)ed
inc!me exemt- assets- ban: acc!unt- credit card-
exenditure- !ther !ut+!in+s as may be 6RE40R2/E;
RE3ISE. RETURN
(G\ (G\
) )
Audit *e4(*t etc
"udit return- rincia) )ace- branches- artners- members etc
( ) O ( ) O .EFECTI3E RETURN
2f "O c!nsiders return defective 3 !!rtunity f!r rectify
.ithin 1% days ( time a))!.ed by "O
INSTITUTIONS U/S #0
*!r certain instituti!ns ( ass!ciati!ns(trade uni!ns & *i)in+ !f
return re,d- i" TOTAL INCOME .ith!ut +ivin+ effect t!
c)ause 21 ( 22/( 29" ( 29/ ( 290 !f 4ec 1$ e&ceeds 'a&
a'(unt n(t ta&ab,e
UNI3ERSIT2
COLLE5E
Every University- c!))e+e !r educati!na) institute referred in c)ause
(ii) !r (iii) !f 4ec 9% (1) n!t !ther.ise re,uired t! fi)e return 3 RE6.!
On disc!very !f !missi!n ( .r!n+ statement 3 u t! !ne
year fr!m the end !f re)evant "# !r assessment
?>
('$.(+ &) *+0&9'
Sec (=> (>) Where the Assessing &fficer considers that the
return of income furnished " the assessee i. de)ecti,e, he
ma" inti0ate the defect to the assessee and gi!e him an
opportunit" to rectif" the defect within a period of )i)teen
day. )ro0 t*e date o) .uc* inti0ation or within such
further period which, on an application made in this ehalf,
the A..e..in5 O))icer 0ay, in *i. di.cretion, allo+@
and i) t*e de)ect i. not recti)ied within the said period of

fifteen da"s or, as the case ma" e, the further period so
allowed, then, notwithstanding an"thing contained in an"
other pro!ision of this Act, the return .*all 1e treated a.
an in,alid return and the pro!isions of this Act shall appl"
as if the assessee had failed to furnish the return 7
%ro!ided that where the assessee rectifies the defect after the
expir" of the said period of fifteen da"s or the further period
allowed, ut efore the assessment is made, the Assessing
&fficer ma" condone the dela" and treat the return as a !alid
returnE
. .
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('$.(+ &) *+0&9'
Sec(=>(>) E8-lanation3 )or the purposes of this su-section,

a return o) inco0e .*all 1e re5arded a. de)ecti,e
unle.. all t*e )ollo+in5 condition. are )ul)illed, namel" 7
(a) the anne8ure., .tate0ent. and colu0n. in t*e return

of income relating to computation of income chargeale
under each head of income, computation of gross total
income and total income ha!e een duly )illed in@
() the return is accompanied " a .tate0ent .*o+in5 t*e

co0-utation o) t*e ta8 -aya1le on t*e 1a.i. o) t*e
return@
() the return is accompanied " the re-ort o) t*e audit

re)erred to in .ection 99A$, or, where the report has een
furnished prior to the furnishing of the return, " a cop" of
such report together with -roo) o) )urni.*in5 the report@
. .
?A
('$.(+ &) *+0&9'

unle.. all t*e )ollo+in5 condition. are )ul)illed, namel" 7
(c) the return is acco0-anied 1y -roo) o)
(i) the ta8, if an", claimed to ha!e een deducted or

collected at .ource and the ad,ance ta8 and ta8 on .el)/
a..e..0ent, if an", claimed to ha!e een paid
%ro!ided that where the return is not accompanied "

proof of the tax, if an", claimed to ha!e een deducted or
collected at source, the return of income shall not e
regarded as defecti!e if
(a) a certificate for tax deducted or collected was not

furnished under section DC3 or section DC80 to the person
furnishing his return of income@
() such certificate is produced within a period of two

"ears specified under su-section (B4) of section B22@
(ii) the amount of compulsor" deposit, if an", claimed to ha!e

een made under the 0ompulsor" Deposit -cheme (*ncome-
tax %a"ers) Act, BA>4 (3? of BA>4)@
. .
AC
('$.(+ &) *+0&9'

unle.. all t*e )ollo+in5 condition. are )ul)illed,
namel" 7
(d) where re5ular 1oo@. o) account are 0aintained " the

assessee, the return is accompanied " copies of
( 0anu)acturin5 account, tradin5 account, -ro)it and
lo.. account or, as the case ma" e, income and
expenditure account or an" other similar account and
alance sheet@
(ii) in the case of a -ro-rietary 1u.ine.. or -ro)e..ion, the

-er.onal account o) t*e -ro-rietor@ in the case of a firm,
association of persons or od" of indi!iduals, personal
accounts of the -artner. or 0e01er.@ and in the case of a
-artner or 0e01er o) a )ir0, a..ociation o) -er.on. or
1ody o) indi,idual., also his personal account in the firm,
association of persons or od" of indi!iduals@
. .
AB
('$.(+ &) *+0&9'

unle.. all t*e )ollo+in5 condition. are )ul)illed,
namel" 7
(e) +*ere t*e account. o) t*e a..e..ee *a,e 1een

audited, the return is accompanied " co-ie. o) t*e
audited -ro)it and lo.. account and 1alance .*eet and
t*e auditor. re-ort and, +*ere an audit o) co.t
account. o) t*e a..e..ee *a. 1een conducted, under
section D33; of the 0ompanies Act, BA28 (B of BA28), also
t*e re-ort under t*at section@
(f) +*ere re5ular 1oo@. o) account are not 0aintained "

the assessee, the return is accompanied " a .tate0ent
indicatin5 t*e a0ount. o) turno,er or, a. t*e ca.e
0ay 1e, 5ro.. recei-t., 5ro.. -ro)it, e8-en.e. and net
-ro)it o) t*e 1u.ine.. or -ro)e..ion and t*e 1a.i. on
+*ic* .uc* a0ount. *a,e 1een co0-uted, and also
disclosing the a0ount. o) total .undry de1tor., .undry
creditor., .toc@/in/trade and ca.* 1alance a. at t*e
end o) t*e -re,iou. year3
. .
AD
('$.(+ &) *+0&9'
. .
"hc
shcu!d
!!c u
rc!urn
'
A3
('$.(+ &) *+0&9'
. .
A snapshot from I!"#
<=O 4=OUL; 42>? @@
prescribed form
Sec >"
A4
W/& -/&.LD -*,+ T
!ux !ux . .
TNDT\|D|\
l
. . H | l
COMl\NY
lTRM
/ \Ol lOT
. \r! Jur!d!cu!
llRSON
ll
RS
ON
lOC\l
\|THORTTY
TNDT\TD|\l h!msc!
\bscn! rcm Tnd!u bv llRSON D|lY \|THORTSlD
Mcn!u!!v !ncupuc!!u!cd G|\RDT\N
Cun NOT s!n bv llRSON D|lY \|THORTSlD
|\RT\ / ! ubscn! rcm Tnd!u mcn!u!!v !ncupuc!!u!cd \NY
\D|lT MlMllR
M\N\GTNG DTRlCTOR / ! nc MD MD cun ! s!n
DTRlCTOR
Cc bc!n cund up bv lTO|TD\TOR [ ( ) ] scc !8 !
Munucmcn! !ukcn cvcr bv Gcvcrnmun! lRTNCTl\l
OllTClR
. Cc NOT RlSTDlNT . . . bv llRSON H\\TNG l O \ ( cnc!cscd !!h
) rc!urn
M\N\GTNG l\RTNlR / cun ! s!n nc Munu!n pur!ncr \NY
l\RTNlR ( ) mu]cr
lRTNCTl\l
OllTClR
/ \nv MlMllR lRTNCTl\l OllTClR
lOlTTTC\l l\RTY
CHTll l\lC|TT\l OllTClR
/ TH\T llRSON llRSON COMllTlNT TO \CT ON
TTS llH\ll
\NY OTHlR
llRSON
lTMTTlD
lT\lTlTTY
l\RTNlRSHTl
DlSTGN\TlD l\RTNlR / cun ! s!n nc Dcs!nu!cd pur!ncr
\NY l\RTNlR
A2
('$.(+ &) *+0&9'
. .
Hc !c
!!c u
rc!urn '
"hu! ! !hc rc!urn
!!cd !s cund bv
usscsscc !c bc
dccc!!vc
"hu! ! !hc rc!urn
!!cd !s cund bv \
O !c bc dccc!!vc
"hu! ! !hc rc!urn
ccu!d nc! bc !!cd bv
!hc D|l D\Tl
R|ll !? R|ll !?
TTR ! TO 8 TTR ! TO 8
A8
('$.(+ &) *+0&9'
. .
Rc!urn nc!
!!cd bv
D|l D\Tl
R|ll !? R|ll !?
TTR ! TO 8 TTR ! TO 8
"H\T H\lllNS Tl
Rc!urn nc!
!!cd !n
prcscr!bcd
crm
Rc!urn nc!
vcr!!cd us
prcscr!bcd
U t! !ne year fr!m the end
!f re)evant "# !r assessment
!eturn in7a,id
NO RlT|RN
"*AER !ne year fr!m the end
!f re)evant "# !r assessment
Rc!urn
nc!
rcc!!!
cd
STGNlD
lY
"RONG
llRSON
A>
('$.(+ &) *+0&9'
. .
R|ll !? R|ll !?
TTR ! TTR !
TO 8 TO 8
"H\T H\lllNS Tl
NO RlT|RN
4)otice u/s #0. +#,
4$enalty u/s .-# 1
4c/f losses u/s 23 not allo'ed
4$rosecution u/s .-4**
Sec 2)F. If a person 'ho is re5uired to furnish a return of
his income% as re5uired under sub"section +#, of section #/6
or by the provisos to that sub"section% f.ils /o fur-is0 suc0
re/ur- before /0e e-d of /0e rele3.-/ .ssessme-/ :e.r%
the Assessing 7fficer may direct that such person shall pay%
by 'ay of pe-.l/:% a sum of fi3e /0ous.-d rupees.
A?
('$.(+ &) *+0&9'
. .
R|ll !? R|ll !?
TTR ! TTR !
TO 8 TO 8
"H\T H\lllNS Tl
NO RlT|RN
4)otice u/s #0. +#,
4$e-.l/: u=s 2) F
4c/f losses u/s 23 not allo'ed
4$rosecution u/s .-4**
+
$e-.l/: u=s 2)2A(2)
!s.#33/"for every day
during 'hich the failure
continues
AA
('$.(+ &) *+0&9'
. .
Sec '4?CC3 I) a -er.on +il)ully )ail. to )urni.* in due ti0e the

return of fringe enefits which he is reGuired to furnish under su-
section (B) of section BB2WD or " notice gi!en under su-section (D)
of the said section or section BB2W/ or the return o) inco0e which
he is reGuired to furnish under .u1/.ection (() o) .ection (=> or "
notice gi!en under 3>clause (i) of su-section (B) of section B4D or
section B4? 3?or section B23A, *e .*all 1e -uni.*a1le,
(i) in a case where the amount of ta8, which would ha!e een e,aded if
the failure had not een disco!ered, e8ceed. one *undred
t*ou.and ru-ee., +it* ri5orou. i0-ri.on0ent )or a ter0 +*ic*
.*all not 1e le.. t*an .i8 0ont*. 1ut +*ic* 0ay e8tend to
.e,en year. and +it* )ine@
(ii) in any ot*er ca.e, with i0-ri.on0ent for a term which shall not 1e
le.. t*an t*ree 0ont*. 1ut +*ic* 0ay e8tend to t*ree year.
and +it* )ine7
%ro!ided that a -er.on .*all not 1e -roceeded a5ain.t under t*i.

.ection for failure to furnish in due time the return of fringe enefits
under su-section (B) of section BB2WD or return of income under su-
section (B) of section B3A
(i) for an" assessment "ear commencing prior to the Bst da" of April, BA>2@ or
(ii) for an" assessment "ear commencing on or a)ter t*e (.t day o)
A-ril (>4B, i)
(a) the return i. )urni.*ed 1y *i0 1e)ore t*e e8-iry o) t*e

a..e..0ent year@ or
() the ta8 -aya1le 1y *i0 on t*e total inco0e determined on regular

assessment, a. reduced 1y t*e ad,ance ta8, i) any, -aid, and any
ta8 deducted at .ource, doe. not e8ceed t*ree t*ou.and
ru-ee.E
BCC
('$.(+ &) *+0&9'
. .
R|ll !? R|ll !?
TTR ! TTR !
TO 8 TO 8
"H\T H\lllNS Tl
, TDS ccr!!!cu!cs \ud!! rcpcr!s
c!c nc! u!!uchcd !!h !hc rc!urn
>+ A--e6ure5less Form
)o document +including 89 certificate, should be attached to this
form. 7fficial receiving the return has been instructed to detach all
documents enclosed 'ith this form and return the same to the
assessee.
BCB
('$.(+ &) *+0&9'
. .
Sec (=>C lccr c lcurd !c d!spcnsc !!h urn!sh!n

, . , dccumcn!s c!c !!h !hc rc!urn.
(() $he $oard ma" ma4e rule. pro!iding for a cla.. or cla..e.
o) -er.on. who ma" not 1e reKuired to )urni.*
docu0ent., .tate0ent., recei-t., certi)icate., re-ort. o)
audit or any ot*er docu0ent., which are otherwise under
an" other pro!isions of this Act, except section B3AD, reKuired
to 1e )urni.*ed, alon5 +it* t*e return ut on demand to e ut on demand to e
produced efore the Assessing &fficer produced efore the Assessing &fficerE
(') An" rule 0ade under the pro!iso to su-section (A) of

section B3A as it stood immediatel" 1e)ore it. o0i..ion 1y
t*e Finance Act, '664 shall e dee0ed to *a,e 1een
0ade under t*e -ro,i.ion. o) t*i. .ectionE
( ) l rc v !sc !c S c c ! 8 O O [ , , . . . . Om!!!cd bv !hc l!nuncc \c! ?OO r c
- - ] ! G ?OOG lrcv!dcd !hu! !hc lcurd , muv bv ru!cs ,$ mudc bv !!
( ) u d!spcnsc, , cr u c!uss cr c!usscs c pcrscns !!h unv c
( ) ( ) !hc ccnd!!!cns spcc!!cd !n c!uuscs u !c " ( ) cr b
( ) ( ) !nc!udc unv c !hc ccnd!!!cns spcc!!cd !n c!uuscs u !c c
- !h!s lxp!unu!!cn !n !hc crm c rc!urn prcscr!bcd undcr sub
( ) - ( ) . scc!!cn ! cr sub scc!!cn G c !h!s scc!!cn
BCD
('$.(+ &) *+0&9'
. .
4 0an two total incomes (eEgEEE of an indi!idual & 4arta of /.)) e
clued in a single return :
2o B84 *$( B34 (-0)

4 0an an illegall" constituted entit" file a return of income (eEgEE A firm
constituted in contra!ention of the pro!isions of law) :
:esPPPE 9adanmohan %al !s 0*$, (BAA4) DCA *$( 3>4, 3>A

(Allahaad)
4 *s it mandator" to file a return in case of loss :
+o
4 0an unasored depreciation e carried forward without filing a
return :
:es PPPPPPPPPPPPPPPEE 9adanmohan %al !s 0*$,

(BAA4) DCA *$( 3>4, 3>A (Allahaad)
4 Which assessment is referred to in -ec B3A (4) :
;est #udgement assessment u1s B44

4 Whether a return sumitted after assessment completed ut efore the
notice of demand is ser!ed would e !alid :
+o PPPPPPEE;alechand !s *$& (BA8A) >D *$( BA> (-0)

4 Whether a return filed after cancellation of ;est #udgement assessment
(within one "ear from the end of the rele!ant A:) is a !alid return :
:es PPPPPPPPPPPP (am ;ilas Sedarnath !s *$& (BA83)

4> *$( 2?8 (All)
BC3
('$.(+ &) *+0&9'
. .
4 0an assessee re!ise his return whene!er he wishes to do so :
2o n onl r v s t r # s n
om ss on or rror n t or n l r turn
n t s m # s due to a onafide inad!ertence or mista4e
on the part of the assessee PPPPPPPPPPPPPP -unanda (am
De4a !s 0*$ (BAA4) DBC *$( A??, AAC (,auh)
4 0an assessee file a re!ised return in case where his original return was
ased on his own oo4s of accounts which he claims are correct :
+o PPPPPPPP 0*$ !s *ndiaJs /o" 0entre (%) Ltd N(BAA2) >?

$axman 3>>, 3?4 (0al)
4 +e circu-'r no. 6%$ d'ted 1%.6.199$ issued in connection wit+ section
(0/ s'01 w+en t+e 2ct 3er#its t+e fi-in4 of re*ised return, it is
e53ected to be considered b0 t+e 'ssessin4 'ut+orit0, if t+e s'#e is
fi-ed before t+e 'ssess#ent order is #'de b0 it, ot+erwise, t+e *er0
3ur3ose of 4i*in4 suc+ ' ri4+t wou-d be frustr'ted.
4 What should the A& do if the return is signed and !erified " a wrong
person:
A& should treat it as defecti!e and gi!e opportunit" to rectif"

the defect u1s B3A(A) efore treating it as non-estPPE /ind -amachar
Ltd !E .&* (DCC?) B8A $axman 3CD (%&/)
4 0an a re!ised return e filed in a case of return filed u1s B3A(4) :
+o PPPPPPPPPPPPPPPEE &u0ar 7a5di.* C*andra

Sin*a ,3 CIT L((>>?) ''6 ITR ?4, 4B, 49(SC) :
4 0an a re!ised return e re!ised again :
:'- PPPPPPPEE +iran#an Lal (am 0handra !E 0*$, (BA?D)

B34 *$( 32D (All)
4 0an a re!ised return e filed in a case of return filed u1s B3A (4A)
:es PPPPPPPPPEE0*$ !E -ri ;aldeo#i 9ahara# $rust N(BA?3)

B4D *$( 2?4 (All)
BC4
('$.(+ &) *+0&9'
. .
4 0an assessee file a return of income after assessment is completed :
2o PPPPPPPPPPPPPP ;alchand !sE *$&(BA8A)

>D *$( BA> (-0)
4 0an assessee file a return after a notice for reassessment of income
has een issued to him :
:es PPPPPPPP0*$ !s ; ! ( ,lucose %roducts Ltd (DCCB) D2C

*$( 2BD (A%)
4 0an an assessee file a re!ised return u1s B3A(2) to re!ise a return in
which income was willfull" e!aded or concealed :
+o PPPPPPPPEE-unanda (am De4a !sE 0*$ (BAA4) DBC *$(

A?? (,au)
4 Will an application to the A& disclosing some additional income amount
to a re!ised return :
+o PPPPPPPPEE,opaldas %arshottamdas !sE 0*$ (BA4B) A

*$( B3C (All)
4 0an a re!ised return e filed to change the status :
0an a re!ised return e filed to change the accounting method :
+o PPPPPPPPPPPPPPPEE Dee- Narain Na5u M Co3

,3 CIT L((>A?) (B4 ITR =4 (M!)
4 0an a return filed u1s B3A(3) e re!ised :
:'- PPPPPPPEE 0*$ !E %eri"ar Dist 0oop 9il4 %roducers

.nion Ltd (DCC4) B3> $axman 384 (9ad)
4 0an a re!ised return e filed after an intimation is issued :
:es PPPPPPPPPEE0*$ !E &mpra4ash ;agaria /.) (DCC8)

B22 taxman 4D> (9%)
BC2
('$.(+ &) *+0&9'
. .
4 A return showing u1s B3A (B) filed " an indi!idual with total income
elow taxale limit H is it a !alid return:
1 s PPPPPPPPPPPPPP 0*$ !sE (anchhoddas

Sarsandas (BA2A) 38 *$( 28A (-0)
4 (eturn filed in a wrong form H will it e in!alid:
+o PPPPPPPP Dhampur -ugar 9ills Ltd !sE 0*$ (BA>3) AC *$(

D38 (All)
4 Will a return (prior to A: DCC>-C?) sumitted without necessar"
annexures e in!alid :
+o PPPPPPPPEE Dhampur -ugar 9ills Ltd !sE 0*$ (BA>3) AC

*$( D38 (All)
4 0an an unsigned return e treated as defecti!e u1s B3A (A) :
+o E *t is an *+=AL*D returnPPPPPPPPEEShialdas & sons !sE

0*$ (BAA>) DD> *$( A8C (9%)
4 What will happen where on a return , in place of the signature of the
assessee (an illetrate indi!idual), his name was written on his ehalf
and on his reGuest, " his son:
*+=AL*D return, since the statute reGuires a ph"sical contact

etween the person !erif"ing the return (whether a return of hos own
income, or of another person in a representati!e capacit") and the
signature or the mar4 put on the return PPPPPPPPPPPPPPPEE
CIT ,.3 &e.*a1 C*andra Mandal ((>B6) (A ITR B?> (SC)
4 What happens if a notice of scrutin" u1s B43 (3) is issued wErEtE an
unsigned return :
4 $he return will still e an in!alid return PPPEE'lectrical *nstrument 0o
!E 0*$ (DCCB) D2C *$( >34 (Delhi)
Sec (=>(A) (a) Where the return under su-section (B) or su-section (D)
or su-section (4) for an assessment "ear is furnished after the
specified date, or is not furnished, then whether or not the Assessing
&fficer has extended the date for furnishing the return under su-
section (B) or su-section (D), the assessee shall e liale to pa"
simple interest at fifteen per cent per annum, rec4oned from the da"
immediatel" following the specified date to the date of the furnishing
of the return or, where no return has een furnished, the date of
completion of the assessment under section B44, on the amount of the
tax pa"ale on the total income as determined on regular assessment,
as reduced " the ad!ance tax, if an", paid, and an" tax deducted at
source 7 %ro!ided that the Assessing &fficer ma", in such cases and
under such circumstances as ma" e prescried, reduce or wai!e the
interest pa"ale " an" assessee under this su-sectionE
PPPPPPPPPPPPPPPPPPP
N(c) $he -ro,i.ion. o) t*i. .u1/.ection .*all a--ly in respect of the

assessment for the a..e..0ent year co00encin5 on t*e (.t day
o) A-ril, (>AA, or any earlier a..e..0ent year, and references
therein to the other pro!isions of this Act shall e construed as
references to the said pro!isions as the" were applicale to the
rele!ant assessment "earE
6[inserted b0 /irect '5 7'ws (2#end#ent) 2ct, 19(7, w.e.f.

1.4.(9, '-on4 wit+ )ec 2$42,",8 w+ic+ c'#e into force w.e.f. 1.4.(9]
-ec B3A (?)
. .
Sec (=>A3 (() E,ery -er.on,
(i) i) his total income or the total income of

an" other person in respect of which he is
assessale under this Act during an"
pre!ious "ear exceeded the maximum
amount which is not chargeale to income-
tax@ or
(ii) carr"ing on an" usiness or profession

whose total sales, turno!er or gross receipts
are or is li4el" to exceed fi!e la4h rupees in
an" pre!ious "ear@ or
(iii) who is reGuired to furnish a return of

income under su-section (4A) of section
B3A@ or
(i!) eing an emplo"er, who is reGuired to

furnish a return of fringe enefits under
section BB2WD,
and who has not 1een allotted a

-er0anent account nu01er shall, within
such time, as ma" e -re.cri1ed, a--ly to
t*e A..e..in5 O))icer for the allotment of
a permanent account numerE
Rule > Rule >

3s/?.: 3s/?.:
/ef!re the end !f /ef!re the end !f
the acc!untin+ year the acc!untin+ year
/ef!re the end !f /ef!re the end !f
the acc!untin+ year the acc!untin+ year
%EAE+E
. .
Sec (=>A3 ((A) +otwithstanding an"thing contained in su-

section (B), the Central o,ern0ent ma", " notification in
the &fficial ,a3ette, specif", an" class or classes of persons "
whom tax is pa"ale under this Act or an" tax or dut" is
pa"ale under an" other law for the time eing in force
including importers and exporters whether an" tax is pa"ale
" them or not and such persons shall, within such time as
mentioned in that notification, appl" to the Assessing &fficer
for the allotment of a permanent account numerE
%EAE+E
. .
$he 0entral ,o!tE " noti)ication no3 ((9?A, dated '>3A3'666 has
notified the following class or classes of persons who shall appl" to
the AE&E for allotment of %A+
E8-orter. and I0-orter. as defined in section D(DC) and section
D(D8) of the 0ustoms Act, BA8B, who are reGuired to otain an
importer-exporter code under section > of the )oreign $rade
(De!elopment and (egulation)Act, BAADE
A..e..ee. as defined in rule D(3) of 0entral 'xcise (ules, BA44E
%ersons who issue in!oices under rule 2>A' iEeE trader., etc,
reGuiring registration under 0entral 'xcise (ules, BA44E
%ersons who are a..e..ee. under ser!ice taxE
$he ao!e persons shall appl" for allotment of %A+ +it*in (B day. o)
t*e date o) -u1lication o) t*e noti)icationin the &fficial ,a3etteE
/owe!er, persons who ma" fall in the ao!e categor", after the date
of the ao!e notification, shall appl" for allotment of %A+7
(a) in case of (*) ao!e, 1e)ore 0a@in5 an i0-ort or e8-ort@
() in case of (ii) and (iii) ao!e, 1e)ore 0a@in5 a0 a--lication )or
re5i.tration under central e8ci.e@
(c) in case of (i!) ao!e, 1e)ore 0a@in5 an a--lication )or
re5i.tration under .er,ice ta8@
%EAE+E
. .
$he 0entral ,o!tE " noti)ication no3 =BBO'66(, dated ((/('/
'66( has further notified the following class or classes of
persons7
%ersons registered under the Central Sale. Ta8 Act, (>B? or

t*e 5eneral .ale. ta8 la+ o) t*e a--ro-riate State or
"nion Territory, as the case ma" eE
As on the date of this notification, a person falling within a class or
classes of persons referred to in paragraph *, shall appl" for the
allotment of %A+ +it*in t*irty day. o) t*e date o)
-u1lication o) t*i. notification in the &fficial ,a3etteE
A person who ma" fall within such class or classes of persons after
the date of this notification, as is referred to in paragraph (*),
shall appl" for the allotment of (%A+) 1e)ore 0a@in5 any
a--lication )or re5i.tration under t*e Central Sale. Ta8
Act, (>B? or t*e 5eneral .ale. ta8 la+ of the appropriate
-tate or .nion $erritor", as the case ma" eE
%EAE+E
. .
Sec (=>A3 ((A) +otwithstanding an"thing contained in su-

section (B), the Central o,ern0ent ma", " notification in
the &fficial ,a3ette, specif", an" class or classes of persons "
whom tax is pa"ale under this Act or an" tax or dut" is
pa"ale under an" other law for the time eing in force
including importers and exporters whether an" tax is pa"ale
" them or not and such persons shall, within such time as
mentioned in that notification, appl" to the Assessing &fficer
for the allotment of a permanent account numerE
(($) +otwithstanding an"thing contained in su-section (B), the

Central o,ern0ent ma", for the purpose of collecting an"
information which ma" e useful for or rele!ant to the
purposes of this Act, " notification in the &fficial ,a3ette,
specif", an" class or classes of persons who shall appl" to the
Assessing &fficer for the allotment of the permanent account
numer and such persons shall, within such time as mentioned
in that notification, appl" to the Assessing &fficer for the
allotment of a permanent account numerE
(') $he A..e..in5 O))icer, *a,in5 re5ard to t*e nature o)

t*e tran.action. a. 0ay 1e -re.cri1ed, ma" also allot a
permanent account numer, to an" other person (whether an"
tax is pa"ale " him or not), in the manner and in accordance
with the procedure as ma" e prescriedE
%EAE+E
. .
Sec (=>A3 (=) Any -er.on, not falling under su-section (B)
or su-section (D), ma" appl" to the Assessing &fficer for the
allotment of a permanent account numer and, thereupon,
the Assessing &fficer shall allot a permanent account numer
to such person forthwithE
(9) )or the purpose of allotment of -er0anent account

nu01er. under t*e ne+ .erie., the $oard ma", "
noti)ication in t*e O))icial aPette, .-eci)y t*e date
from which the persons referred to in su-sections (B) and (D)
and ot*er -er.on. +*o *a,e 1een allotted -er0anent
account nu01er. and re.idin5 in a -lace to 1e
.-eci)ied in .uc* noti)ication, shall, within such time as
ma" e specified, appl" to the Assessing &fficer for the
allotment of a permanent account numer under the new
series and upon allotment of such permanent account
numer to a person, the permanent account numer, if an",
allotted to him earlier shall cease to ha!e effect 7
%ro!ided that the persons to whom permanent account numer

under the new series has alread" een allotted shall not appl"
for such numer againE
%EAE+E
. .
!AN
(=>A3 (B) '!er" person shall
(a) Kuote .uc* nu01er in all *i. return. to, or

corre.-ondence +it*, any inco0e/ta8 aut*ority@
() Guote such numer in all c*allan. for the pa"ment of an"

sum due under this Act@
(c) Guote such numer in all docu0ent. -ertainin5 to .uc*

tran.action. a. 0ay 1e -re.cri1ed 1y t*e $oard in the
interests of the re!enue, and entered into " him7
%ro!ided that the $oard 0ay -re.cri1e different dates for

different transactions or class of transactions or for different
class of persons7
%ro!ided further that a -er.on .*all Kuote eneral Inde8

Re5i.ter Nu01er till .uc* ti0e !er0anent Account
Nu01er i. allotted to .uc* -er.on@
(d) inti0ate t*e A..e..in5 O))icer any c*an5e in *i.

addre.. or in t*e na0e and nature o) *i. 1u.ine.. on
the asis of which the permanent account numer was
allotted to himE
Rule > 4 Rule > 4

!AN
Rule/((9$ Cate5orie. o) tran.action. andOor docu0ent +*ere

Kuotin5 o) !AN 0ade co0-ul.ory
sale1purchase of an" immo!ale propert" !alue at (sE2 la4hs or more@
sale1purchase of motor !ehicle (other than two wheeled !ehicles) which
reGuires registration under 9otor !ehicles Act, BA??@
$ime deposit exceeding (sE2C,CCC1- with a an41an4ing
compan"1an4ing institution@
Deposits exceeding (sE2C,CCC1- in %ost &ffice -a!ings ;an4E
0ontract for sale1purchase of securities exceeding (sEB,CC,CCC1-
&pening an account with a an41an4ing compan"1an4ing institutionE
Where the person opening a an4 account is a minor and does not
ha!e an" income chargeale to income-tax, he shall Guote the
%A+1,*( numer of his father or mother or guardian as the case ma"
eE
Application for installation of a telephone connection including cellular
connectionE
%a"ment to hotels1restaurants of ills exceeding (sED2,CCC1- at an"
timeE
%a"ment in cash for purchase of an4 draft or pa" orders or an4erIs
cheGues from a an4ing compan" to which the ;an4ing (egulation
Act, BA4A, applies (including an" an4 or an4ing institution referred
to in section 2B of that Act) for an amount aggregating (sE2C,CCC1-
or more during an" one da"@
Rule > 4 Rule > 4
!AN
Rule/((9$ Cate5orie. o) tran.action. andOor docu0ent +*ere

Kuotin5 o) !AN 0ade co0-ul.ory ///////////contd3
deposit in cash aggregating to (sE2C,CCC1- or more, with a an4ing
compan" to which the ;an4ing (egulation Act, BA4A, applies
(including an" an4 or an4ing institution referred to in secE 2B of
that Act) during an" one da"@
pa"ment in cash in connection with tra!el to an" foreign countr" of an
amount exceeding (sED2,CCC1- at an" one timeE -uch pa"ment shall
include pa"ment in cash towards fare, or to a tra!el agent or a tour
operator, or for the purchase of foreign currenc"E /owe!er, tra!el to
an" foreign countr" does not include tra!el to the neighouring
countries or to such places of pilgrimage as ma" e specified " the
;oard under 'xplanation 3 of section B3A(B)E
9a4ing an application to an" an4ing compan" to which the ;an4ing
(egulation Act, BA4A, applies (including an" an4 or an4ing
institution referred to in section 2B of that Act) or to an" other
compan" or institution, for issue of a credit card@
pa"ment of an amount of (sE2C,CCC1- or more to a 9utual )und for
purchase of its units
pa"ment of an amount of (sE2C,CCC1- or more to a compan" for
acGuiring shares issued " it@
pa"ment of an amount of (sE2C,CCC1- or more to a compan" or an
institution for acGuiring deentures or onds issued " it@
pa"ment of an amount of (sE2C,CCC1- or more to the (eser!e ;an4 of
*ndia, for acGuiring onds issued " itE
Rule > 4 Rule > 4
Sec (=>A3 (BA) '!er" person recei!ing an" sum or income or

amount from which tax has een deducted under the
pro!isions of 0hapter <=**;, shall intimate his permanent
account numer to the person responsile for deducting such
tax under that 0hapter 7
%ro!ided further that a person referred to in this su-section

shall intimate the eneral Inde8 Re5i.ter Nu01er till .uc*
ti0e -er0anent account nu01er is allotted to such personE
(B$) Where an" sum or income or amount has een paid after
deducting tax under 0hapter <=**;, e!er" person deducting tax
under that 0hapter shall Guote the permanent account numer
of the person to whom such sum or income or amount has
een paid " him
(i) in the .tate0ent furnished in accordance with the pro!isions

of su-section ('C) o) .ection (>'@
(ii) in all certi)icate. furnished in accordance with the

pro!isions of section '6=@
(iii) in all return. -re-ared and deli,ered or caused to e

deli!ered in accordance with the pro!isions of .ection '6? to
an" income-tax authorit"@
(i!) in all .tate0ent. prepared and deli!ered or caused to e

deli!ered in accordance with the pro!isions of .u1/.ection (=)
o) .ection '667
%EAE+E
. .
Sec (=>A3 (2;) Where an" sum or income EEEEEEEEEEEEEEEEEEE
%ro!ided that the Central o,ern0ent ma", " notification in

the &fficial ,a3ette, specif" different dates from which the
pro!isions of this su-section shall appl" in respect of an"
class or classes of persons7
%ro!ided further that not*in5 contained in .u1/.ection.

(BA) and (B$) .*all a--ly in ca.e o) a -er.on +*o.e
total inco0e i. not c*ar5ea1le to inco0e/ta8 or +*o i.
not reKuired to o1tain -er0anent account nu01er
under an" pro!ision of this Act i) i) such -er.on )urni.*e. to
t*e -er.on re.-on.i1le )or deductin5 ta8, a declaration
re)erred to in .ection (>4A in t*e )or0 and 0anner
-re.cri1ed t*ereunder to the effect that the tax on his
estimated total income of the pre!ious "ear in which such
income is to e included in computing his total income will e
nilE
(BC) '!er" 1uyer or licen.ee or le..ee re)erred to in

.ection '6?C shall inti0ate *i. -er0anent account
nu01er to t*e -er.on re.-on.i1le )or collectin5 ta8
referred to in that sectionE
%EAE+E
. .
Sec (=>A3 (BD) '!er" person collecting tax in accordance with

the pro!isions of section DC80 shall Guote the permanent
account numer of e!er" u"er or licensee or lessee referred
to in that section
(i) in all certi)icate. furnished in accordance with the pro!isions

of su-section (2) of section DC80@
(ii) in all return. prepared and deli!ered or caused to e

deli!ered in accordance with the pro!isions of su-section (2A)
or su-section (2;) of section DC80 to an income-tax
authorit"@O
(iii) in all .tate0ent. prepared and deli!ered or caused to e

deli!ered in accordance with the pro!isions of su-section (3)
of section DC80E
(?) E,ery -er.on recei,in5 any docu0ent relatin5 to a

tran.action -re.cri1ed under clau.e (c) o) .u1/.ection
(B) .*all en.ure t*at t*e !er0anent Account Nu01er or
t*e eneral Inde8 Re5i.ter Nu01er *a. 1een duly
Kuoted in the documentE
(4) No -er.on +*o *a. already 1een allotted a -er0anent

account nu01er under t*e ne+ .erie. .*all a--ly,
o1tain or -o..e.. anot*er -er0anent account nu01er3
%EAE+E
. .
Sec (=>A3 (4) No -er.on +*o *a. already 1een allotted a

-er0anent account nu01er under t*e ne+ .erie. .*all a--ly,
o1tain or -o..e.. anot*er -er0anent account nu01er3
E8-lanation3 )or the remo!al of douts, it is here" declared

that an" person, who has een allotted a permanent account
numer under an" clause other than clause (i!) of su-section
(B), shall not e reGuired to otain another permanent account
numer and the permanent account numer alread" allotted to
him shall e deemed to e the permanent account numer in
relation to )rin5e 1ene)it ta83
(A) T*e $oard 0ay 0a@e rule. pro!iding for
(a) t*e )or0 and t*e 0anner in +*ic* an a--lication 0ay

1e 0ade for the allotment of a permanent account numer and
the particulars which such application shall contain@
() t*e cate5orie. o) tran.action. in relation to +*ic*

!er0anent Account Nu01er. or t*e eneral Inde8
Re5i.ter Nu01er .*all 1e Kuoted " e!er" person in the
documents pertaining to such transactions@
(c) t*e cate5orie. o) docu0ent. -ertainin5 to 1u.ine.. or

-ro)e..ion in +*ic* .uc* nu01er. .*all 1e Kuoted "
e!er" person@
%EAE+E
. .
Sec (=>A3 (A) T*e $oard 0ay 0a@e rule. pro!iding for
(d) cla.. or cla..e. o) -er.on. to +*o0 t*e -ro,i.ion. o)

t*i. .ection .*all not a--ly@
(e) t*e )or0 and t*e 0anner in +*ic* t*e -er.on +*o *a.
not 1een allotted a !er0anent Account Nu01er or who
does not ha!e ,eneral *ndex (egister +umer shall 0a@e *i.
declaration@
(f) the 0anner in +*ic* the %ermanent Account +umer or the

,eneral *ndex (egister +umer shall e Kuoted in respect of
the categories of transactions referred to in clause (c)@
(g) the ti0e and t*e 0anner in +*ic* t*e tran.action.

re)erred to in clau.e (c) .*all 1e inti0ated to t*e
-re.cri1ed aut*orityE
E8-lanation3 )or the purposes of this section,

(a) (a)A..e..in5 O))icer A..e..in5 O))icer include. an inco0e/ta8 aut*ority +*o
i. a..i5ned t*e duty o) allottin5 -er0anent account
nu01er.@
() -er0anent account nu01er means a numer which the

Assessing &fficer ma" allot to an" person for the purpose of
identification and include. a -er0anent account nu01er
allotted under t*e ne+ .erie.@
%EAE+E
. .
Sec (=>A3 E8-lanation3 )or the purposes of this section,
(a) (a)A..e..in5 O))icer A..e..in5 O))icer include. an inco0e/ta8 aut*ority +*o

i. a..i5ned t*e duty o) allottin5 -er0anent account
nu01er.@
() -er0anent account nu01er means a numer which the

Assessing &fficer ma" allot to an" person for the purpose of
identification and include. a -er0anent account nu01er
allotted under t*e ne+ .erie.@
(c) -er0anent account nu01er under t*e ne+ .erie.

means a permanent account numer *a,in5 ten
al-*anu0eric c*aracter. and i..ued in t*e )or0 o) a
la0inated card@
(d) eneral Inde8 Re5i.ter Nu01er means a numer gi!en "

an Assessing &fficer to an assessee in the eneral Inde8
Re5i.ter maintained " him and containing the designation
and particulars of the ward or circle or range of the Assessing
&fficerE
%EAE+E
. .
CONSEQUENCES OF FAIU!E TO CO"P# $ITH SEC %&' A CONSEQUENCES OF FAIU!E TO CO"P# $ITH SEC %&' A
Penalt(
Sec '4'$3 (() I) a -er.on )ail. to co0-ly +it* t*e

-ro,i.ion. o) .ection (=>A, the A..e..in5 O))icer ma"
direct that such person shall pa", " wa" of -enalty, a sum of
ten t*ou.and ru-ee.E
(') *f a -er.on +*o i. reKuired to Kuote *i. -er0anent

account nu01er in an" document referred to in clause (c) o)
.u1/.ection (B) of section B3AA, or to intimate such numer
as reGuired " .u1/.ection (BA) or .u1/.ection (BC) of that
section, Kuote. or inti0ate. a nu01er +*ic* i. )al.e, and
which he either 4nows or elie!es to e false or does not
elie!e to e true, the A..e..in5 O))icer ma" direct that
such person shall pa", " wa" of -enalty, a sum of ten
t*ou.and ru-ee.E
(=) +o order under su-section (B) or su-section (D) shall e

passed unless the person, on whom the penalt" is proposed to
e imposed, is gi!en an o--ortunity o) 1ein5 *eard in the
matter
%EAE+E
. .
(=>$3(() )or the purpose of enaling any .-eci)ied cla.. or

cla..e. o) -er.on. in preparing and furnishing returns of income,
the $oard ma", without pre#udice to the pro!isions of section B3A,
)ra0e a Sc*e0e, 1y noti)ication in t*e O))icial aPette,
pro!iding that .uc* -er.on. 0ay )urni.* t*eir return. o)
inco0e t*rou5* a Ta8 Return !re-arer authorised to act as
such under the -chemeE
(') '!er" Ta8 Return !re-arer shall a..i.t t*e -er.on. furnishing
the return of income in such 0anner a. 0ay 1e .-eci)ied in t*e
Sc*e0e framed under this section and a))i8 *i. .i5nature on
.uc* returnE
(=) )or the purposes of this section,
(a) Ta8 Return !re-arer means an" indi,idual, not 1ein5 a

-er.on re)erred to in clau.e (ii) or clau.e (iii) or clau.e (i))
o) .u1/.ection (') o) .ection 'AA or an e0-loyee of the
specified class or classes of persons, who has een aut*ori.ed to
act a. a Ta8 Return !re-arer under t*e Sc*e0e framed under
this section@
(1).-eci)ied cla.. or cla..e. o) -er.on. means an" -er.on,
ot*er t*an a co0-any or a -er.on, +*o.e account. are
reKuired to 1e audited under section 44A; or under an"
other law for the time eing in force, who is reKuired to
)urni.* a return of income under this ActE
$A< ('$.(+ %('%A('( -0/'9'
. .
Sec (=>$3 (9) $he Sc*e0e framed " the ;oard under this section
0ay -ro,ide )or the following, namel"7
(') the 0anner in +*ic* and t*e -eriod )or +*ic* t*e Ta8
Return !re-arer. .*all 1e aut*ori.ed under su-section (3)@
(b) the educational and other Kuali)ication. to e possessed, and

the trainin5 and other condition. reGuired to e fulfilled, " a person
to act as a $ax (eturn %reparer@
(c) the code o) conduct for the $ax (eturn %reparers@
(d) the dutie. and o1li5ation. of the $ax (eturn %reparers@
(e) the circu0.tance. under +*ic* t*e aut*ori.ation 5i,en to a

Ta8 Return !re-arer 0ay 1e +it*dra+n@
(f) any ot*er 0atter which is reGuired to e, or ma" e, specified

" the -cheme for the purposes of this sectionE
(B) $he Sc*e0e framed " the ;oard under this section .*all 1e laid, as
soon as ma" e after it is framed, 1e)ore eac* %ou.e o) !arlia0ent,
+*ile it i. in .e..ion, )or a total -eriod o) t*irty day. which ma"
e comprised in one session or in two or more successi!e sessions, and
if, efore the expir" of the session immediatel" following the session or
the successi!e sessions aforesaid, oth /ouses agree in ma4ing an"
modification in the -cheme or oth /ouses agree that the -cheme
should not e framed, the -cheme shall thereafter ha!e effect onl" in
such modified form or e of no effect, as the case ma" e@ so, howe!er,
that an" such modification or annulment shall e without pre#udice to
the !alidit" of an"thing pre!iousl" done under that -chemeE
$A< ('$.(+ %('%A('( -0/'9'
. .
Filin* o+ ret,rn in electronic +or-. Filin* o+ ret,rn in electronic +or-.
Sec (=>D3 $he ;oard ma" ma4e rules pro!iding for
(') the class or classes of persons who shall e reGuired to

furnish the return in electronic form@
(b) the form and the manner in which the return in

electronic form ma" e furnished@
(c) the docu0ent., .tate0ent., recei-t., certi)icate.

or audited re-ort. which ma" not e furnished along with
the return in electronic form ut shall e -roduced 1e)ore
t*e A..e..in5 O))icer on de0and@
(d) the computer resource or the electronic record to which

the return in electronic form ma" e transmittedE
-ec B3A D
. .
Sec (96A3 (() F*ere any ta8 i. -aya1le on t*e 1a.i. o) any
return reKuired to 1e )urni.*ed under section BB2WD or
section BB2W/ or section B3A or section B4D or section B4? or
section B23A or, as the case ma" e, section B2?;0, a)ter
ta@in5 into account,
(i) the amount of ta8, i) any, already -aid under an"

pro!ision of this Act@
(ii) an" ta8 deducted or collected at source@
(iii) an" relie) o) ta8 or deduction o) ta8 claimed under

.ection >6 or .ection >( on account of tax paid in a countr"
outside *ndia@
(i*) an" relie) o) ta8 clai0ed under .ection >6A on account

of tax paid in an" specified territor" outside *ndia referred to in
that section@ and
(*) an" tax credit claimed to e set off in accordance with the
pro!isions of .ection ((B7AA,
the a..e..ee .*all 1e lia1le to -ay .uc* ta8 to5et*er

+it* intere.t -aya1le under an" pro!ision of this Act for an"
dela" in furnishing the return or an" default or dela" in
pa"ment of ad!ance tax, 1e)ore )urni.*in5 t*e return and
the return .*all 1e acco0-anied 1y -roo) o) -ay0ent o)
.uc* ta8 and intere.tE
-'L) A--'--9'+$
. .
Explanation3 Where the a0ount -aid 1y t*e a..e..ee under

t*i. .u1/.ection )all. .*ort of the aggregate of the tax and
interest as aforesaid, the a0ount .o -aid .*all )ir.t 1e
adQu.ted to+ard. t*e intere.t -aya1le a. a)ore.aid and
t*e 1alance, i) any, .*all 1e adQu.ted to+ard. t*e ta8
-aya1leE
((A) )or the purposes of su-section (B), intere.t -aya1le,
(i) under .ection '=9A shall e co0-uted on t*e a0ount

o) t*e ta8 on t*e total inco0e as declared in the return a.
reduced 1y the amount of,
(') ad!ance tax, if an", paid@
(b) an" tax deducted or collected at source@
(c)an" relief of tax or deduction of tax claimed under

section AC or section AB on account of tax paid in a countr"
outside *ndia@
(d) an" relief of tax claimed under section ACA on

account of tax paid in an" specified territor" outside *ndia
referred to in that section@ and
(e) an" tax credit claimed to e set off in accordance

with the pro!isions of section BB26AA@
(ii) under .ection ((BF& shall e computed on the amount

of ta8 on t*e ,alue o) t*e )rin5e 1ene)it. a. declared in
t*e return as reduced 1y t*e ad,ance ta8, paid, if an"E
-'L) A--'--9'+$
. .
Sec (96A (($) )or the purposes of su-section (B), intere.t

-aya1le under .ection '=9$ shall e computed on an
amount eGual to the a..e..ed ta8 or, as the case ma" e, on
t*e a0ount 1y +*ic* t*e ad,ance ta8 -aid )all. .*ort o)
t*e a..e..ed ta8E
953-'n'tion. )or the purposes of this su-section, assessed tax assessed tax
means the tax on the total income as declared in the return as
reduced " the amount of,
(i) ta8 deducted or collected at .ource, in accordance with the

pro!isions of 0hapter <=**, on an" income which is su#ect to such
deduction or collection and which is ta4en into account in computing
such total income@
(ii) an" relie) of tax or deduction of tax claimed under .ection >6
or .ection >( on account of tax paid in a countr" outside *ndia@
(iii) an" relie) of tax claimed under .ection >6A on account of tax
paid in an" specified territor" outside *ndia referred to in that section@
and
(i*) an" ta8 credit claimed to e set off in accordance with the
pro!isions of .ection ((B7AAE
(') A)ter a re5ular a..e..0ent under section BB2W' or

section BB2W) or section B43 or section B44 or an assessment
under section B23A or section B2?;0 has een made, an"
a0ount -aid under .u1/.ection (() .*all 1e dee0ed to
*a,e 1een -aid to+ard. .uc* re5ular a..e..0ent or
assessment, as the case ma" eE
-'L) A--'--9'+$
. .
Sec (96A (=) I) any a..e..ee )ail. to -ay t*e +*ole or any
-art o) .uc* ta8 or intere.t or oth in accordance with the
pro!isions of su-section (B), *e .*all, without pre#udice to an"
other conseGuences which he ma" incur, 1e dee0ed to 1e an
a..e..ee in de)ault in respect of the tax or interest or oth
remaining unpaid, and all the pro!isions of this Act shall appl"
accordingl"E
(9) $he pro!isions of this section as the" stood immediatel"

efore theiramend-ment " the Direct $ax Laws (Amendment)
Act, BA?> (4 of BA??), shall appl" to and in relation to an"
assessment for the assessment "ear commencing on the Bst
da" of April, BA??, or an" earlier assessment "ear and
references in this sectionto the other pro!isions of this Act
shall e construed as references to thosepro!isions as for the
time eing in force and applicale to the rele!ant assessment
"earE
-'L) A--'--9'+$
. .
Even th!u+h the statute uses the .!rd 5sha))8- since this is a taxin+ and
ena) r!visi!n- and s! a reas!nab)e !!rtunity !f bein+ heard sh!u)d be
+iven t! assessee bef!re a)icati!n !f 1B$" (9) and if the "O is satisfied
.ith the ex)anati!n !f he assessee- it may n!t be a)ied. 2n !ther .!rds-
"O has the discreti!n !f a)yin+ !r n!t a)yin+ the subsecti!n.
.Ramchandra 6esticieds 6 Ltd v. 02A (2$$') 1%% Aaxman 111 (Car)
In.,ir( be+ore assess-ent. In.,ir( be+ore assess-ent.
Sec (9'3 (() )or the purpose of ma4ing an assessment under

this Act, the A..e..in5 O))icer ma" .er,e on any -er.on
who has 0ade a return under .ection ((BFD or .ection
(=> or in whose case the ti0e allo+ed under .u1/.ection
(() o) .ection (=> )or )urni.*in5 t*e return *a. e8-ired a
notice notice reGuiring him, on a date to e therein specified,
(i) where such person has not made a return within the time
allowed under su-section (B) of section B3A or efore the end
of the rele!ant assessment "ear, to )urni.* a return of his
income or the income of an" other person in respect of which
he is assessale under this Act, in the prescried form and
!erified in the prescried manner and setting forth such other
particulars as ma" e prescried, or 7
!ro,ided that where an" notice has een ser!ed under this su-section
for the purposes of this clause after the end of the rele!ant
assessment "ear commencing on or after the Bst da" of April, BAAC to
a person who has not made a return within the time allowed under
su-section (B) of section B3A or efore the end of the rele!ant
assessment "ear, an" such notice issued to him shall e deemed to
ha!e een ser!ed in accordance with the pro!isions of this su-
section,
-ec B4D
. .
Sec (9'E (B) )or the purpose of ma4ing an assessment under this Act,
the Assessing &fficer ma" ser!e on an" person who has made a return
under section BB2WD or section B3A or in whose case the time allowed
under su-section (B) of section B3A for furnishing the return has
expired a notice reGuiring him, on a date to e therein specified,
(i) PPPPEE
(ii) to -roduce, or cau.e to 1e -roduced, .uc* account.

or docu0ent. a. t*e A..e..in5 O))icer 0ay reKuire, or
(iii) to )urni.* in +ritin5 and ,eri)ied in t*e -re.cri1ed

0anner in)or0ation in .uc* )or0 and on .uc* -oint. or
0atter. (including a statement of all assets and liailities of
the assessee, whether included in the accounts or not) a. t*e
A..e..in5 O))icer 0ay reKuire 7
!ro,ided that
(') the -re,iou. a--ro,al o) t*e 7oint Co00i..ioner

.*all 1e o1tained 1e)ore reKuirin5 t*e a..e..ee to
)urni.* a .tate0ent o) all a..et. and lia1ilitie. not
included in the accounts @
(b) the Assessing &fficer shall not reKuire t*e -roduction

o) any account. relatin5 to a -eriod 0ore t*an t*ree
year. -rior to t*e -re,iou. yearE
-ec B4D
. .
Sec (9'3(') )or the purpose of otaining full information in respect

of the income or loss of an" person, the A..e..in5 O))icer 0ay
0a@e .uc* inKuiry a. *e con.ider. nece..aryE
('A) *f, at an" stage of the proceedings efore him, the Assessing
&fficer, ha!ing regard to the nature and complexit"

of the accounts
of the assessee and the interests of the re!enue, is of the opinion
that it is necessar" so to do, he ma", with the -re,iou. a--ro,al
o) t*e C*ie) Co00i..ioner or Co00i..ioner, direct t*e
a..e..ee to 5et t*e account. audited 1y an accountant, as
defined in the 953-'n'tion elow su-section (D) of section D??,
no0inated 1y t*e C*ie) Co00i..ioner or Co00i..ioner in
this ehalf and to furnish a report of such audit in the prescried
form

dul" signed and !erified " such accountant and setting forth
such particulars as ma" e prescried and such other particulars as
the Assessing &fficer ma" reGuire 7
!ro,ided that the Assessing &fficer .*all not direct the assessee to
get the accounts so audited unle.. t*e a..e..ee *a. 1een 5i,en a
rea.ona1le o--ortunity o) 1ein5 *eardE
('$) $he pro!isions of su-section (DA) shall ha!e effect

not+it*.tandin5 t*at t*e account. o) t*e a..e..ee *a,e
1een audited under any ot*er la+ for the time eing in force or
otherwiseE
('C) '!er" re-ort under .u1/.ection ('A) shall e furnished "

the assessee to the Assessing &fficer +it*in .uc* -eriod a. 0ay
1e .-eci)ied 1y t*e A..e..in5 O))icer 7
-ec B4D
. .
Sec (9'E (D0) '!er" report under su-section (DA) shall e furnished "
the assessee to the Assessing &fficer within such period as ma" e
specified " the Assessing &fficer 7
!ro,ided that the A..e..in5 O))icer 0ay, .uo 0otu, or on an

a--lication made in this ehalf " the assessee and for an" good and
sufficient reason, e8tend t*e .aid -eriod " such further period or
periods a. *e t*in@. )it @ so, howe!er, that the a55re5ate o) t*e
-eriod ori5inally )i8ed and t*e -eriod or -eriod. .o e8tended
.*all not, in any ca.e, e8ceed one *undred and ei5*ty day.
from the date on which the direction under su-section (DA) is recei!ed
" the assesseeE
('D) $he e8-en.e. o), and incidental to, any audit under su-
section (DA) (including the remuneration of the accountant) shall e
deter0ined 1y t*e C*ie) Co00i..ioner or Co00i..ioner (which
determination shall e final) and -aid 1y t*e a..e..ee and in
de)ault o) .uc* -ay0ent, .*all 1e reco,era1le )ro0 t*e
a..e..ee in the manner pro!ided in 0hapter <=**-D for the reco!er" of
arrears of tax 7
!ro,ided that where an" direction for audit under su-section (DA) is
issued " the Assessing &fficer on or a)ter t*e (.t day o) 7une,
'664, the expenses of, and incidental to, such audit (including the
remuneration of the Accountant) .*all 1e deter0ined " the 0hief
0ommissioner or 0ommissioner in accordance +it* .uc*
5uideline. a. 0ay 1e -re.cri1ed and the expenses so determined
.*all 1e -aid 1y t*e Central o,ern0entE
-ec B4D
. .
Rule > 4
/,idelines +or the p,rposes o+ deter-inin* expenses +or

a,dit.
Rule (9$3 (() '!er" C*ie) Co00i..ioner .*all 0aintain a -anel o)

accountant., out of the persons referred to in the 'xplanation to su-
section (D) of section D??, for the purposes of su-section (DA) of
section B4DE
(') Where the Assessing &fficer directs for audit under su-section (DA)
of section B4D on or after the Bst da" of 6une, DCC>, the e8-en.e. o),
and incidental to, audit (includin5 t*e re0uneration o) t*e
Accountant, Kuali)ied A..i.tant., .e0i/Kuali)ied and ot*er
A..i.tant. +*o 0ay 1e en5a5ed 1y .uc* Accountant) .*all not
1e le.. t*an ru-ee. t*ree t*ou.and .e,en *undred and )i)ty
and not 0ore t*an ru-ee. .e,en t*ou.and and )i,e *undred
)or e,ery *our o) t*e -eriod as specified " the Assessing &fficer
under su-section (D0) of section B4DE
(=) $he -eriod re)erred to in .u1/rule (') .*all 1e .-eci)ied in

ter0. o) t*e nu01er o) *our. reKuired )or co0-letin5 t*e
re-ortE
(9) $he Accountant re)erred to in .u1/.ection ('A) o) .ection (9'

.*all 0aintain a ti0e/.*eet and .*all .u10it it to t*e C*ie)
Co00i..ioner or Co00i..ioner, along with the illE
(B) $he C*ie) Co00i..ioner or t*e Co00i..ioner .*all en.ure

t*at t*e nu01er o) *our. clai0ed )or 1illin5 -ur-o.e. i.
co00en.urate +it* t*e .iPe and Kuality o) t*e re-ort sumitted
" the Accountant
-ec B4D (ule B4;
. .
Sec (9'E (=) $he a..e..ee .*all, except where the assessment
is made under section B44, 1e 5i,en an o--ortunity o)
1ein5 *eard in re.-ect o) any 0aterial 5at*ered on t*e
1a.i. o) any inKuiry under .u1/.ection (') or any audit
under .u1/.ection ('A) and -ro-o.ed to 1e utili.ed )or
t*e -ur-o.e. o) t*e a..e..0entE
(4) $he pro!isions of this section as the" stood immediatel"

efore their amendment " the Direct $ax Laws (Amendment)
assessment for the assessment "ear commencing on the Bst
da" of April, BA??, or an" earlier assessment "ear and
references in this section to the other pro!isions of this Act
shall e construed as references to those pro!isions as for the
"earE
-ec B4D
. .
/UI0EINES -ade b( 1oard +or selection o+ cases +or Special

A,dit
In.truction No (64? dated ('343(>44
Re5ardin5 Co0-anie.C &nl" those cases where-

B (eports of gross neglect 1 reach of dut" of %rincipal &fficer1
Director
D -earch & -ei3ure conducted under * $ Act or )'(A
3 0o /a!ing foreign collaoration
4 0oJs principal is a foreign coE & deduction of expenses to /ead
&ff claimed
2 0o has import-export usiness & t1o of U (s one crore
8 Allegation sof sustantial tax e!asion
> A& has an" other information necessitating special audit
Re5ardin5 non/Co0-any a..e..ee. PPEE
$he actual selection should e confined for a few carefull"

selected casesE When a case is ta4en for special audit for a
particular area, it is desirale that inter!ening "ears as well as
latest A: should also e ta4en for special audit
-ec B4D
. .
SU""A!# OF 2U0ICIA P!ONOUNCE"ENTS ON SPECIA

AU0IT
!re/reKui.ite. )or orderin5 a S-ecial Audit uO. (9' ('A)
4 $he A& should form an opinion that the nature of the

accounts of the assessee is complex
4 $he interest of the re!enue will e ad!ersel" affected if the
special audit is not directed
4 $he opinion of the A& should e formed o#ecti!el" on the
asis of material efore him and should e ased on
rele!ant considerations
4 $he 0*$ 1 00*$ should grant appro!al for special audit after
appl"ing his mind to all he material considered " the
A& and placed " the A& efore him
4 $he guidelines issued " the 0;D$ !ide *nstruction +o
BC>8 dated BDE>EBA>8 are inding on the A&
-ec B4D
. .
B3?
-ec B4D
. .
(! (!
) )
2f a ers!n re,uired t! fi)e a return had fai)ed t!
fi)e it bef!re the end !f re)evant "#
NOTTC
l
Sc
c
!4
?
( (
! !
) )
TO lTll
RlT|RN
"cc!unts O?L# ut! 9 years bef!re
re)evant 6#
(! (!
) !) !
Tc prcducc
/ \CCO|NTS
DOC|MlNTS
4tatement !f "44EA4 7 L2"/2L2A2E4 !n)y
.ith ri!r ermissi!n !f D02A
(! (!
!! !!
) )
Tc urn!sh
TNlORM\TTO
N
(? (?
) )
lNO|TRTlS !n rcspcc! c !nccmc cr !css
c unv pcrscn
( ) ?\ ( ) ?\
( ) ?l ( ) ?l
( ) ?C ( ) ?C
( ) ?D ( ) ?D
GlT
\CCO|NTS
\|DTTlD
ri!r ermissi!n !f 02A(002A audit!r n!minated by 002A
On)y after +ivin+ an !!rtunity t! be heard t! assessee
Exense b!rne by 0entra) >!vt after 1.'.$E
Ru)e 1B/ Rs 9E%$ t! E%$$ (h!ur
6eri!d +iven(extended by "O ut! 1F$ days
(8 (8
) )
OllORT|NTTY Ol llTNG Hl\RD
(4 (4
) )
\pp!!cub!c !c pr!cr !c
!O8
B3A
-ec B4D
. .
lcs! Judmcn! \sscssmcn!
/ u s !44
/ ( )( ) lcnu!!v u s ?! ! b
, Rs !O OOO cr
l\CH u!!urc
/ lrcsccu!!cn u s ?GCC
Ordcr cr spcc!u! uud!! Ordcr cr spcc!u! uud!!
bcccmcs vc!d bcccmcs vc!d
"H\T H\lllNS Tl
lv \O
lcs! Judmcn! \sscssmcn!
/ u s !44
/ ( )( ) lcnu!!v u s ?! ! b
, Rs !O OOO
cr l\CH u!!urc
/ lrcsccu!!cn u s ?GD
F
A
I
L
U
R
E

o
f

(
O
?
$
L
I
A
N
(
E
B4C
-ec B4D
. .
4 0an inGuir" u1s B4D done after assessment:
2o t pr ss ssm nt n3u r
Amal Sr ,hata4 !E *$& (BA>B) >A *$( 42D (0al)
4 0an a reference to t eh !aluation cell u1s 22A e made u1s B4D) :
+o PPPPPPPPPPPPPPPPEE-mt Ami"a ;ala %aul !E 0*$

(DCC3) D8D *$( 4C> (-0)
4 Where A& gathers material from records pertaining to an earlier "ear,
is he ound to gi!e an opportunit" to e heard :
:es, as such material is co!ered u1s B4D (3)

PPPPE%on4ummam $raders !E Additional *$& (BA>D) ?3 *$( 2C? (Ser)
4 *f the notice u1s B4D (B) is accompanied " a letter as4ing for
information, whether non compliance of that letter amount to non-
compliance u1s B4D (B) :
+o PPPPPPPPPPPPPE 0alcutta 0hromot"pe % LtdE =E *$&

, (BA>B) >A *$( 44D (All)
4 *f the notice u1s B4D (B) called for information part of which was prior to
three "ears from the rele!ant %: then will the whole notice ecome
illegal :
+oE onl" the part pertaining to information prior to 3 "ears will

e illegal H if it is se!erale from the other parts PPP9urlidhar
9adanlal !E 0*$ (BA24) D8 *$( D3B (%at)
4 *s a comined notice as4ing for personal presence as well as production
of records a legal notice :
:esPPPP -E -i!aswa" 0hettiar !E 0*$ 4 *$0 DC> (9ad)

4
4
B4B
-ec B4D
. .
4 Who is to decide which oo4s are reGuired to e produced u1s B4D (B):
s t sol u $e#mal ;ho#ra# =E

0*$ (BA2D) DD *$( DC? (+ag)
4 0an A& as4 for special audit u1s B4D (DA) without loo4ing at the
accounts:
+oE An honest attempt must e made first to understand the

accounts of the assessee PPPPPPPPPEE-wadeshi 0otton 9ills 0o
Ltd =E 0*$ (BA??) B> *$( 834 (All)
4 0an special audit e as4ed for in a case where the accounts are alread"
audited:
:esPPPPE6ag#it -ugar 9ills 0o LtdE =E 0*$ (BAA4) DBC *$( 48?

(%un#&/ar)
4 0an the 0ommissioner issue an order for the special audit u1s B4D(DA):
+o E An order " 0*$ does not amount to appro!al as en!isaged

in the statutePPPPPPPPPE %eerless ,en )in & *n! 0o Ltd =E 0*$
(BAAA) BCD $axman 824 (0al)
4 *f the A& ma4es a proposal to the 0*$ for appointing an auditor u1s B4D
(DA) without sharing an" other information related with the case,
and if 0*$ nominates an auditor for the audit, does it amount to
compliance of sec B4D : *s the action !alid :
+oE Appro!al " the 0*$ must e specific and gi!en after
considering material on the asis of which A& has proposed the special
auditPPP %eerless ,en )in & *n! 0o Ltd =E 0*$ (BAAA) D38 *$( 8>B(0al)
4 *s Guantum of turno!er or receipts rele!ant for special audit :
+oPPPP 6t 0*$ =E *$0 Ltd (BAAA) D3A *$0 ADB (0al)

4
4
B4D
-ec B4D
. .
4 Would an A& e #ustified in ordering special audit on the ground that
there were man" litigations going etween the assessee and the (;*
:
2o , t s n rr l v nt
ons r t on %eerless ,en )in &
*n! 0o Ltd =E 0*$ (BAAA) D38 *$( 8>B(0al)
4 0an a special audit e ordered on the ground that the stoc4s could not
e reconciled " the auditors :
+oE PPPPPPPPPEE.% -tate /andloom 0orpL td =E 0*$ (DCCC)

D42 *$( BAD (All)
4 0an special audit e as4ed " A& if the assessee did not respond to his
Gueries regarding accounts :
+o $hat is not a reasonale ground en!isaged in sec B4D (DA)

PPPPE9othoottu 9ini Suries =E D" 0*$ (DCCB) D2C *$( 422 (Ser)
4 $he order u1s B4D (DA) did not disclose an" reason for special audit, nor
did records re!eal an" application of mind " A&E -useGuentl" th
eorder u1s B4D (DA) was challenged as eing ad in law and it was
sumitted " A& that special audit was ordered ecause of past
histor" of assessee, the fact that he offered income under =D*-
scheme and had not filed audited accounts as was reGuired u1s
44A;E Was th eorder of A& :
+o E -ince the reasons 1 application of mind were not apparent

in the order u1s B4D (DA) it is in!alidPPPPPPPPPE /% -tates )orest
0orp Ltd =E 60*$ (DCCB) D2D *$( ?33 (/%)
B43
-ec B4D
. .
4 *s A& reGuired to pro!ide an opportunit" to e heard to the assessee
efore ordering a special audit u1s B4D (DA) :
1 rov so u s (
ns rt n t #
t r t u m nt n s o "!
Fin Cor- #3 7CIT ('66B) (94 Ta80an '( (All) w+ic+ +e-d t+'t suc+ 'n
o33ortunit0 w's not re:uired 's 3er t+e st'tuteE
4 0an the A& issue a notice u1s B4D (B) calling for a return of income,
after the due date pro!ided in -ec B3A and efore the end of the
rele!ant assessment "ear:
:esPPPPPPPPPEEDepartmental circular +oE 2>D dated 3

rd

August BAAC
4 PPPE What is the intention ehind introduction of words or efore the
end of the rele!ant assessment "ear " )inance Act DCC8 :
Clari)icatory a0end0ent re5ardin5 t*e ti0e li0it )or i..ue o)

notice under .ection (9'
$he existing pro!isions contained in su-section (B) of said section, inter-

alia, pro!ide that for the purposes of ma4ing assessment in a case
where a person has not made a return of his income within the time
specified under su-section (B) of section B3A, the Assessing &fficer
ma" ser!e a notice under the said su-section on such person reGuiring
him to furnish the return of his income in the prescried form and
mannerE
*t is proposed to amend clause (i) of su-section (B) so as to pro!ide that in

a case where a person has not made a return of his income efore the
end of the rele!ant assessment "ear, the Assessing &fficer ma" ser!e a
notice after the end of the rele!ant assessment "ear under said su-
section reGuiring such person to furnish his return of incomeE
LMe0orandu0 to Finance Act ( , e8-lainin5 clau.e &3 4hich a-ended Sec

%56 7%87i89
B44
-ec B4D
\ ssc ssm c n ! l rc cc d u rc \ ssc ssm c n ! l rc cc d u rc
. .
4 Would an A& e #ustified in ordering special audit on the ground that
accounts or documents are !oluminous :
2o , t s not nou to m t
ounts ompl x or ust sp l
u t ;a#rang $extiles =E 0*$ (DCC4) 3
-&$ BB2 (6odh)
4 0an the A& ma4e a reference to an auditor to prepare oo4s of
accounts on the asis of records sei3ed during a search :
+oE PPPPPPPPPEE ;a#rang $extiles =E 0*$ (DCC4) 3 -&$ BB2

(6odh)
4 *s the audit report u1s B4D (DA) inding on the A&: 0an the A& re#ect
the same without assigning an" reason :
+oE *t is +&$ indingE /owe!er, the A& cannot re#ect the

special audit report without assigning an" reasonsPPPPE0*$ =sE
-ahara *ndia )in 0orp Ltd (DCC4) B32 $axman B24 (+ag)
4 *n case an assessee fails to file a return of income, is it mandator" for
the A& to issue a notice u1s B4D (B) :
+o
4 0an a est #udgment u1s B44 e completed in a case of non-filing of
return, without issuing a notice u1s B4D (B) for filing of a return u1s
B4D (B) (i) :
:esE *t is not mandator" to issue a notice u1s B4D(B) (i) in all

cases of non-filers or a necessar" part of assessment u1s B44, ut then
an opportunit" of eing heard will ha!e to e gi!en as per -ec B44E
Esti-ate b( :al,ation O++icer in certain cases
Sec (9'A3(() )or the -ur-o.e. o) 0a@in5 an a..e..0ent or

reassessment under this Act, where an estimate of the !alue of
an" in!estment referred to in section 8A or section 8A; or the
!alue of an" ullion, #eweller" or other !aluale article referred
to in section 8AA or section 8A; is reGuired to e made, the
A..e..in5 O))icer 0ay reKuire t*e #aluation O))icer to
0a@e an e.ti0ate o) .uc* ,alue and re-ort the same to
himE
(') $he #aluation O))icer to whom a reference is made under

su-section (B) shall, for the purposes of dealing with such
reference, ha!e all the -o+er. t*at *e *a. under .ection
=AA o) t*e Fealt*/ta8 Act, (>B4 ('4 o) (>B4)3
(=) &n receipt of the report from the =aluation &fficer, the
A..e..in5 O))icer 0ay, a)ter 5i,in5 t*e a..e..ee an
o--ortunity o) 1ein5 *eard, ta@e into account .uc*
re-ort in 0a@in5 .uc* a..e..0ent or rea..e..0ent7
!ro,ided that not*in5 contained in t*i. .ection .*all a--ly in

re.-ect o) an a..e..0ent 0ade on or 1e)ore t*e =6t* day
o) Se-te01er, '669, and where such assessment has ecome
final and conclusi!e on or efore that date, except in cases where a
reassessment is reGuired to e made in accordance with the
pro!isions of section B23AE
-ec B4D A
. .
Esti-ate b( :al,ation O++icer in certain cases
Sec (9'A DDDDDDDD
E8-lanation3 *n this section, =aluation &fficer has the same

meaning as in clause (r) of section D of the Wealth-tax Act,
BA2> (D> of BA2>)EO
-ec B4DA
. .
D c !n !!!c n c \ u !u u !!c n O !cc r !n " c u !!h Tu x \ c!
S c c ? (r) V.lu./io- Officer means a person appointed as a :aluation
7fficer under sec/io- 2A% and includes a !egional :aluation 7fficer% a
8istrict :aluation 7fficer% and an Assistant :aluation 7fficer .
W T Act A44(int'ent (" 3a,uati(n O""ice*s!
Sec 2A+ () he *entral ;overnment may appoint as many :aluation
7fficers as it thin<s fit.
(2) 9ub(ect to the rules and orders of the *entral ;overnment regulating the
conditions of service of persons in public services and posts% . 1e.l/05/.6
.u/0ori/: m.: .ppoi-/ .s m.-: o3erseers7 sur3e:ors .-d .ssessors
.s m.: be -ecess.r: /o .ssis/ /0e V.lu./io- Officers in the performance
of their functions.
-ec B4DA
. .
Wea,t) Ta& Act 1(e*s (" 3a,uati(n O""ice*, etc!
Sec 3&A+() 1or the purposes of this Act% a :aluation 7fficer or any
overseer% surveyor or assessor authorised by him in this behalf may%
sub(ect to any rules made in this behalf and at such reasonable times as
may be prescribed%
(a) e-/er .-: l.-d 'ithin the limits of the area assigned to the :aluation
7fficer% or
(b) e-/er .-: l.-d7 buildi-2 or o/0er pl.ce belo-2i-2 /o or occupied b:
.-: perso- i- co--ec/io- 1i/0 10ose .ssessme-/ . refere-ce has
been made under section #4A to the :aluation 7fficer% or
(c) i-spec/ .-: .sse/ i- respec/ of 10ic0 . refere-ce under section #4A
has been made to the :aluation 7fficer%
and re@uire .-: perso- i- c0.r2e of7 or i- occup./io- or possessio-
of7 suc0 l.-d7 buildi-2 or o/0er pl.ce or .sse/ /o .fford 0im /0e
-ecess.r: f.cili/: to survey or inspect such land% building or other place or
asset or estimate its value or inspect any boo<s of account% document or
record 'hich may be relevant for the valuation of such land% building or
other place or asset and gather other particulars relating to such land%
building or other place or asset:
-ec B4DA
. .
Sec 3&A+()**+
$ro3ided that -o V.lu./io- Officer7 o3erseer7 sur3e:or or .ssessor
s0.ll e-/er any building or place referred to in clause +b,% or i-spec/ any
asset referred to in clause +c, +u-less 1i/0 /0e co-se-/ of the person in
charge of% or in occupation or possession of% such building% place or asset,
1i/0ou/ pre3iousl: 2i3i-2 /o suc0 perso- ./ le.s/ /1o d.:s -o/ice i-
1ri/i-2 of his intention to do so.
+., If a person 'ho% under sub"section +#,% is re5uired to afford any facility
to the :aluation 7fficer or the overseer% surveyor or assessor% either refuses
or evades to afford such facility% the :aluation 7fficer shall have all the
po1ers u-der sub5sec/io-s () .-d (2) of sec/io- 3) for e-forci-2
compli.-ce of the re5uirements made.

-ec B4DA
. .
Sec 3) () he Assessing 7fficer% V.lu./io- Officer% 8eputy
*ommissioner +Appeals,% *ommissioner +Appeals,% *hief
*ommissioner or *ommissioner and the Appellate ribunal s0.ll7 for
/0e purposes of /0is Ac/7 0.3e /0e s.me po1ers .s .re 3es/ed i- .
cour/ u-der /0e (ode of (i3il $rocedure7,"& (A of ,"&)% 'hen
trying a suit in respect of the follo'ing matters% namely:
(a) disco3er: .-d i-spec/io-B
(b) e-forci-2 /0e .//e-d.-ce of .-: perso-7 i-cludi-2 .-:
officer of . b.-Ci-2 comp.-: .-d e6.mi-i-2 0im o- o./0B
(c) compelli-2 /0e produc/io- of booCs of .ccou-/ .-d o/0er
docume-/sB .-d
(d) issui-2 commissio-s+
Sec (9=3 (() Where a return has een made under section B3A,
or in response to a notice under su-section (B) of section B4D,
such return shall e -roce..ed in the following manner,
namel"7
(a) the total income or loss shall e computed after ma4ing the
following adQu.t0ent., namel"7
(i) an" arit*0etical error in the return@ or
(ii) an incorrect claim, if such incorrect clai0 i.

a--arent )ro0 any in)or0ation in t*e return@
(1) the ta8 and intere.t, i) any, .*all 1e co0-uted on t*e

1a.i. o) t*e total inco0e co0-uted under clause (a)@
(c) the .u0 -aya1le 1y, or t*e a0ount o) re)und due to,
t*e a..e..ee shall e deter0ined a)ter adQu.t0ent o) the
tax and interest, if an", computed under clause () " an" tax
deducted at source, an" tax collected at source, an" ad!ance
tax paid, an" relief allowale under an agreement under
section AC or section ACA, or an" relief allowale under section
AB, an" reate allowale under %art A of 0hapter =***, an" tax
paid on self-assessment and an" amount paid otherwise " wa"
of tax or interest@
-ec B43
. .
Sec (9=3 (() Where a return has een made under section B3A,
or in response to a notice under su-section (B) of section B4D,
such return shall e -roce..edin the following manner,
namel"7
(d) an inti0ation shall e -re-ared or 5enerated and .ent to

the assessee specif"ing the sum determined to e pa"ale ",
or the amount of refund due to, the assessee under clause (c)@
and
(e) the amount of re)und due to the assessee in pursuance of

the determination under clause (c) shall e 5ranted to the
assessee7
!ro,ided that an inti0ation .*all al.o 1e .ent to the

assessee in a case +*ere t*e lo.. declared in t*e return
1y t*e a..e..ee i. adQu.tedut no tax or interest is pa"ale
", or no refund is due to, him7
!ro,ided further that no inti0ation under this su-section shall

e sent a)ter t*e e8-iry o) one year )ro0 t*e end o) t*e
)inancial year in +*ic* t*e return i. 0ade3
-ec B43
. .
Sec (9=3 (() Where a return has een made under section B3A, or in response
to a notice under su-section (B) of section B4D, such return shall e
-roce..edin the following manner, namel"7
E8-lanation3 )or the purposes of this su-section,
(a) an incorrect clai0 a--arent )ro0 any in)or0ation in t*e

return shall mean a claim, on the asis of an entr", in the
return,
(i) of an ite0, +*ic* i. incon.i.tent +it* anot*er

entry of the same or some other item in such return@
(ii) in respect of which the in)or0ation reKuired to 1e

)urni.*ed under this Act to sustantiate such entr" *a. not
1een .o )urni.*ed@ or
(iii) in respect of a deduction, where such deduction

e8ceed. .-eci)ied .tatutory li0it which ma" ha!e een
expressed as monetar" amount or percentage or ratio or
fraction@
(1) the ac@no+led5e0ent of the return shall e dee0ed to 1e

t*e inti0ation in a case +*ere no .u0 i. -aya1le 1y, or
re)unda1le to, the assessee under clause (c), and +*ere no
adQu.t0ent *a. 1een 0ade under clause (a)E
-ec B43
. .
Sec (9=3 ((A) )or the purposes of processing of returns under

su-section (B), the $oard 0ay 0a@e a .c*e0e )or
centrali.ed -roce..in5 o) return. with a !iew to
expeditiousl" determining the tax pa"ale ", or the refund due
to, the assessee as reGuired under the said su-sectionE
(($) -a!e as otherwise expressl" pro!ided, for the purpose of

gi!ing effect to the sc+e#e sc+e#e made under su-section (BA), the
Central o,ern0ent 0ay, 1y noti)ication in t*e O))icial
aPette, direct t*at any o) t*e -ro,i.ion. o) t*i. Act
relatin5 to -roce..in5 o) return. .*all not a--ly or .*all
a--ly +it* .uc* e8ce-tion., 0odi)ication. and
ada-tation. a. 0ay 1e .-eci)ied in that notification@ so,
howe!er, that no direction shall e issued after the 3Bst da" of
9arch, DCBCE
((C) '!er" noti)ication i..ued under .u1/.ection (($), along

with the scheme made under su-section (BA), shall, as soon as
ma" e after the notification is issued, e laid 1e)ore eac*
%ou.e o) !arlia0entE
-ec B43
. .
Sec (9=3 (') Where a return has een furnished under section B3A,
or in response to a notice under su-section (B) of section B4D, the
Assessing &fficer shall,
(i) where he has rea.on to 1elie,e t*at any clai0 o) lo..,

e8e0-tion, deduction, allo+ance or relie) 0ade in t*e
return i. inad0i..i1le, ser!e on the assessee a notice
.-eci)yin5 -articular. o) .uc* clai0 o) lo.., e8e0-tion,
deduction, allo+ance or relie) and reKuire *i0, on a date to
1e .-eci)ied t*erein to -roduce, or cau.e to 1e -roduced,
any e,idence or -articular. .-eci)ied t*erein or on +*ic*
t*e a..e..ee 0ay rely, in .u--ort o) .uc* clai07
!ro,ided that no notice under t*i. clau.e .*all 1e .er,ed on

t*e a..e..ee on or a)ter t*e (.t day o) 7une, '66=@
(ii) notwithstanding an"thing contained in clause (i), if *e con.ider.

it nece..ary or e8-edient to en.ure t*at t*e a..e..ee *a.
not under.tated t*e inco0e or *a. not co0-uted e8ce..i,e
lo.. or *a. not under/-aid t*e ta8 in any 0anner, .er,e on
t*e a..e..ee a notice reKuirin5 *i0, on a date to e specified
therein, eit*er to attend *i. o))ice or to -roduce, or cau.e to
1e -roduced, any e,idence on +*ic* t*e a..e..ee 0ay rely
in .u--ort o) t*e return7
!ro,ided that no notice under clau.e (ii) .*all 1e .er,ed on

t*e a..e..ee a)ter t*e e8-iry o) .i8 0ont*. )ro0 t*e end o)
t*e )inancial year in +*ic* t*e return i. )urni.*edE
-ec B43
. .
Sec (9=3 (=) &n the day .-eci)ied in t*e notice,
(i) issued under clause (i) of su-section (D), or as soon afterwards

as ma" e, after hearing such e!idence and after ta4ing into
account such particulars as the assessee ma" produce, the
Assessing &fficer shall, " an order in writing, allow or re#ect
the claim or claims specified in such notice and ma4e an
assessment determining the total income or loss accordingl",
and determine the sum pa"ale " the assessee on the asis of
such assessment@
(ii) i..ued under clau.e (ii) o) .u1/.ection ('), or a. .oon

a)ter+ard. a. 0ay 1e, a)ter *earin5 .uc* e,idence a.
t*e a..e..ee 0ay -roduce and .uc* ot*er e,idence a.
t*e A..e..in5 O))icer 0ay reKuire on .-eci)ied -oint.,
and a)ter ta@in5 into account all rele,ant 0aterial +*ic*
*e *a. 5at*ered, the Assessing &fficer shall, " an order in
+ritin5, ma4e an a..e..0ent o) t*e total inco0e or lo..
of the assessee, and deter0ine t*e .u0 -aya1le 1y *i0 or
re)und of an" amount due to him on the asis of such
assessment7
-ec B43
. .
Sec (9=3 (=) 3333333333
!ro,ided that in t*e ca.e o) a (a) scientific research association

referred to in clause (DB) of section BC@ () news agenc" referred to in
clause (DD;) of section BC@ (c) association or institution referred to in
clause (D3A) of section BC@ (d) institution referred to in clause (D3;) of
section BC@ (e) fund or institution referred to in su-clause (i!) or trust
or institution referred to in su-clause (!) or an" uni!ersit" or other
educational institution referred to in su-clause (!i) or an" hospital or
other medical institution referred to in su-clause (!ia) of clause (D30)
of section BC, which is reKuired to )urni.* t*e return o) inco0e
under .u1/.ection (9C) o) .ection (=>, no order 0a@in5 an
a..e..0ent of the total income or loss of such scientific research
association, news agenc", association or institution or fund or trust or
uni!ersit" or other educational institution or an" hospital or other
medical institution, shall e made " the Assessing &fficer, +it*out
5i,in5 e))ect to t*e -ro,i.ion. o) .ection (6,
unle.. (i) the A..e..in5 O))icer *a. inti0ated t*e Central

o,ern0ent or t*e -re.cri1ed aut*ority t*e contra,ention o)
t*e -ro,i.ion. of clause (DB) or clause (DD;) or clause (D3A) or
clause (D3;) or su-clause (i!) or su-clause (!) or su-clause (!i) or
su-clause (!ia) of clause (D30) of section BC, as the case ma" e, 1y
.uc* scientific research association, news agenc", association or
institution or fund or trust or uni!ersit" or other educational institution
or an" hospital or other medical institution, +*ere in *i. ,ie+ .uc*
contra,ention *a. ta@en -lace@ and
-ec B43
. .
Sec (9=3 (=) 3333333333
%ro!idedPPPPPE
(ii) the a--ro,al 5ranted to .uc* scientific research association or

other association or fund or trust or institution or uni!ersit" or other
educational institution or hospital or other medical institution *a.
1een +it*dra+n or noti)ication i..ued in respect of such news
agenc" or fund or trust or institution *a. 1een re.cinded 7
!ro,ided further that +*ere t*e A..e..in5 O))icer i. .ati.)ied t*at

t*e acti,itie. of the uni!ersit", college or other institution referred to
in clau.e (ii) and clau.e (iii) o) .u1/.ection (() o) .ection =B are
not 1ein5 carried out in accordance +it* all or any o) t*e
condition. su#ect to which such uni!ersit", college or other
institution was appro!ed, *e 0ay, a)ter 5i,in5 a rea.ona1le
o--ortunity o) .*o+in5 cau.e a5ain.t t*e -ro-o.ed +it*dra+al
to the concerned uni!ersit", college or other institution, reco00end
to t*e Central o,ern0ent to +it*dra+ t*e a--ro,al and that
o,ern0ent 0ay 1y order, +it*dra+ t*e a--ro,al and forward a
cop" of the order to the concerned uni!ersit", college or other
institution and the Assessing &fficerE
-ec B43
. .
Sec (9=3 (9) Where a re5ular a..e..0ent under su-section

(3) of this section or section B44 is made,
(a) an" ta8 or intere.t -aid " the assessee under su-section
(B) shall e deemed to ha!e een -aid to+ard. .uc* re5ular
a..e..0ent @
() if no refund is due on regular assessment or the a0ount

re)unded under .u1/.ection (() e8ceed. t*e a0ount
re)unda1le on re5ular a..e..0ent, the +*ole or t*e
e8ce.. a0ount .o re)unded .*all 1e dee0ed to 1e ta8
-aya1le " the assessee and the pro!isions of this Act shall
appl" accordingl"E
-ec B43
. .
B2A
-ec B43
. .
(! (!
) )
\RTTHMlTTC lRRORS
TNCORRlCT Cl\TM \ll\RlNT lROM TNlORM\TTON TN
RlT|RN
lR
OC
lS
ST
NG
Sc
c
!4
8
( ) u ( ) u
\DJ|STMlNTS
TOTAL INCOME ( ) b ( ) b
& T\\
TNTlRlST
( ) c ( ) c
/ Sum puvub!c bv Rcund duc !c
\sscsscc
( ) d ( ) d
TNTTM\TT
ON
( ) c ( ) c
Rll|ND
4ent t! the assessee
lRO\TSO
!
lRO\TSO
?
INTIMATION SENT IN CASE OF A.8USTMENT OF LOSS
NO INTIMATION AFTER T0E EN. OF ONE 2EAR FROM
EN. OF F!2! IN W0IC0 RETURN WAS FILE.
(u
)
(b
)
#INCONSISTENT ENTRIES IN R/I
2INFORMATION RE6UIRE. NOT FURNIS0E.
9.E.UCTION E:CEE.S STATUTOR2 LIMIT
I" n( ad;ust'ent
AC<NOWLE.5EMENT .EEME. INTIMATION
l
\
l
l
\
N
\
T
T
O
N
S
B8C
-ec B43
. .
(! (!
) )
Sc
c
!4
8
( ) !\ ( ) !\
( ) !l ( ) !l
( ( !C !C) )
ClNTR\lTSlD
lROClSSTNG
Ol RlT|RNS
/!ard 6!.er f!r ma:in+ a 40=EGE f!r 0entra)ised r!cessin+
0entra) >!vt ?!tificati!n 2* any r!visi!ns !f "ct .i)) ?!t a)y
?!tificati!n t! be )aid bef!re the ar)iament
B8B
-ec B43
. .
(! (!
) )
Sc
c
!4
8
(? (?
) )
NOTTCl
/ Tl \O CONSTDlRS TT NlClSS\RY l\llDTlNT TO lNS|Rl TH\T
/ \SSlSSll H\S NOT |NDlRST\TlD HTS TNCOMl COMl|TlD l\ClSST\l
/ lOSSlS |NDlRl\TD T\\lS
(8 (8
) )
\SSlSSMlNT
(4 (4
) )
T\\lS DlD|CTlD l\TD TO ll T\|lN TNTO
\CCO|NT
/ / TO \TTlND HTS OllTCl lROD|Cl C\|Sl TO ll
lROD|ClD
\NY l\TDlNCl ON "HTCH Hl M\Y "TSH TO RllY
TN S|llORT
& Ol TOT\l TNCOMl DlTlRMTN\TTON Ol S|M
l\Y\lll cr Rll|ND D|l TO \SSlSSll bv
ORDlR TN "RTTTNG
\!cr Hl\RTNG l\TDlNCl TH\T \SSlSSll M\Y
/ & lROD|Cl \O M\Y RlO|TRl T\|TNG TNTO \CCCO|NT
\ll Rlll\\NT M\TlRT\l
B8D
-ec B43
. .
4 What should the A& do if due to some reason he is not ale to adhere
to the schedule of hearing for which a notice is alread" issued :
, ss ss s oul n orm n
v n t r t rou l tt r or
t rou t l p on # r v r poss l
Instruction ;o. 1$9% (F. ;o 201<2(<(1.I2.II) dt 1%.%.(1 (114

t+

!e3ort ((2.($) of t+e =28, 3.16.17)
4 0an an A& fix the hearing in case of man" assessees at the same time:
+oE A& should gi!e each assessee a different time

PPPPPPPPPPPPPPPP 8ircu-'r ;o 2$0 dt 27.10.77 ( F ;o
22%<109<77.I2.II)
4 *f during the hearing the A& comes to oser!e a relief or claim or
deduction that the assessee was entitled to ut has not claimed,
can the A& ad!ice the assessee to claim it:
:esE &fficers of the Department must not ta4e

ad!antage of the ignorance of the assesseeE Although the responsiilit"
of claiming refunds or reliefs rest with the assessee, the officers of the
Department should (i) draw their attention to an" refund or relief to
which the" appear to e clearl" entitled & (ii) freel" ad!ise, +*en
a--roac*ed 1y t*e0, aout their rights and liailities, and as to the
procedure to e adopted for claiming such refunds and reliefsE
.8ircu-'r ;o 14 (>7.$%) dt 11.4.%%

B83
-ec B43
. .
4 What is expected from the A& in an assessment:
x pt t t s oul v
pr n to t s s # r l l
to l mor r v nu t s oul not
o s ss # t u t ur s s
rt n u m nts to ompl t n n r
n s m r t # ll u t # n
# ompl t s t os s s n not
t xt nt to # s oll t s
u t st m t
Instruction ;o. $ of 1942 dt 16.1.42
$he assessment has to e made in a reasonale & fair manner

after ta4ing into account all rele!ant circumstances of the caseE '!en
when the assessment has to e made ex-parte, the information
a!ailale should e reasonal" weighed and a proper estimate made in
the exercise of est #udgment in the circumstancesE
.Instruction ;o %74 dt 27.7.7$ (19$

rd
!e3ort (($.(4) of t+e =28,
3.26.27)
4 0an the A& call for an affida!it:
.nless there is some material asis for suspicion, affida!its sworn

or affirmed efore a magistrate should not e called forE
Instruction ;o. $ of 1942 dt 16.1.42

4 *s a notice of demand of tax pa"ale on the asis of assessment !alid if
not accompanied with a cop" of the assessment order:
+oE As per the ;oardJs circular +o BCD, 0 +o A(DD)-*$14> dt

B2E4E4? a cop" of the assessment order should e supplied to the
assessee in each case along with the demand notice PPE=ri0'n?'
&et'-s = 7td @. 28I (2204) 270I! %(6, %(7.(( (&=)
B84
-ec B43
. .
4 0an the assessee as4 for an ad#ournment at the last minute : 0an the
reGuest of assessee for grant of an ad#ournment e refused " the
A&:
r t ss ss s lr t n
on ournm nt ut s r s not r
ournm nt t ss ss s oul m t
r 3u st or ournm nt # ll n v n so
s to n l m n s o r us l to
pr p r to pro on t ppo nt
8I @. 7'5#i ;'r'0'n "'drid's (19$7) % I! 170

(=8)
4 Will e!er" minor error !itiate the assessment proceeding:
+oE An assessment proceeding does not cease to e a proceeding

under the Act merel" " reason of a want of noticeE *t will e a
proceeding liale to e challenged and correctedE .9st'te of
7'te !'n4-'- A'Bodi' @. 8I (1971) 79 I! %0% ()8)
4 Will an error in the name of the assessee !itiate the assessment
proceeding:
+o .9st'te of 7'te !'n4-'- A'Bodi' @. 8I (1971) 79 I!

%0% ()8)
4 What is the rele!ance of admission of addition " the assessee:
Assessment is to e made not solel" on the asis of admission of

a personE A proper order of assessment should e made on the asis of
all facts & circumstances and on a correct application of the rele!ant
pro!ision of law PPE8I @. 2=='ru?utt0 &oo3i-'##' (19(4) 149 I!
1$1 (Cer)
B82
-ec B43
. .
4 -hould the A& alwa"s Kerr on the side of the re!enueL:
, x r s s 3u s u l po# rs
n n o n o t must t n r
m nn r n not n p rt s n m nn r
lt ou t s t r ut to nsur t t
no t x # s l t m t l u r m ns
un ov r t must lso not t n
m nn r t t m t n t t t t
s l s r # nst t ss ss
8I @. )i#on 8'r*es 7td (1976) 10% I! 212 ()8)

4 0an the A& re#ect the information pro!ided in return or the e!idence
gi!en in assessment:
:esE *t is an inherent power of A&E ."o#b'0 D'rdw're

)0ndic'te @. 8I (197$) 92 I! 160 (&'d)
4 While exercising a power !ested in him, if the A& refers to a wrong
section, then will the action ta4en e !oid :
+oE Where the power to proceed is actuall" there, the mere

reference to a wrong section will not !itiate the action ta4en
.Is+' "ee*i @. !E (197%) 101 I! 449 ()8)
4 )or a return of income for A: DCC2-C8, filed on 3BE3EC> H if the law was
amended wEeEfE BE4EC8, will the amended pro!isions appl" :
+oE $he law as it rules during the A: will appl"PPE!e-i'nce Aute

F Industries 7td @. 8I (1979) 20 I! 921 ()8)
B88
-ec B43
. .
4 *s an assessment u1s B43(3) !alid if the return filed was not signed :
2o ss ssm nt s on n nv l
r turn s nv l l l to
n ll
8I @. Cris+'n 7'- Go0'- (19(4) 14( I! 2($ (=unB

F D'r)
4 $he A& made an addition during the assessment wherein he relied on a
pro!ision of the *$ Act which was suseGuentl" held as ultra-!ires to
the constitutionE Will the assessment order is also null & !oid :
+oE *f the machiner" pro!ision used for assessment is !alid

.!'-ei4+ In*est#ent 8o. @. Go*ernor Gener'- in 8ounci-
(1947) 1% I! $$2 (=8)
4 $he assessee is ha!ing a dispute with a third part" on certain incomeE
-hould the A& necessaril" wait till the litigation is decided efore
passing the assessment order :
+oE *ncome-tax assessment has to made e!er" "ear and cannot

e held up until the final result of a legal proceeding which ma" pass
through se!eral courts.8I @. D DirBee (19%$) 2$ I! 427 ()8)
4 What if the A& does not sign the assessment order:
*n!alid order PPEC'-0'n ?u#'r !o0 @. 8I (1996) 219 I! 214

()8)
4 What if the A& does not state the computation of tax in the assessment
order, ut such computation was gi!en in the demand notice sent
along with the assessment order:
=alid order PPE)+'+'d'r' (/e-+i) )'+'r'n3ur 7i4+t !'i-w'0s 8o.

7td. @. 8I (1994) 20( I! ((2(C'-)
B8>
-ec B43
. .
4 Does the '!idence Act appl" in case of assessment :
, ou t prov s ons o t
v n t o not ppl to ss ssm nt
pro n # n t ut or t s r
ll upon to ons r t ts o
o um nt t n r l prov s ons
m o n o v n
t # ll ppl
2@; A'44' !ow @. 8I (19(7) 166 I! (62 (2=)

E7idence Act, #8=2 E7idence Act, #8=2
Sec ,+ E3ide-ce of /erms of co-/r.c/s7 2r.-/ .-d o/0er disposi/io-s of
proper/: reduced /o form of docume-/ 5 =hen the terms of a contract% or of a
grant% or of any other disposition of property have been reduced to the form of a
document% and in all cases in 'hich any matter is re5uired by la' to be reduced to
the form of a document% no evidence shall be given in proof of the terms of such
contract% grant or other disposition of property% or of such matter% except the
document itself% or secondary evidence of its contents in cases in 'hich secondary
evidence is admissible under the provisions herein before contained.

B8?
-ec B43
. .
,2+ E6clusio- of e3ide-ce or or.l .2reeme-/ 5 D0e- the terms of any such
contract% grant or other disposition of property% or any matter re5uired by la' to be
reduced to the form of a docume-/ 0.3e bee- pro3ed .ccordi-2 /o /0e l.s/
sec/io-% -o e3ide-ce of .-: or.l .2reeme-/ or s/./eme-/ s0.ll be .dmi//ed% as
bet'een the parties to any such instrument or their representatives in interest% for
/0e purpose of co-/r.dic/i-27 3.r:i-2 .ddi-2 /o7 or sub/r.c/i-2 from7 i/s /erm:
$ro3iso () " A-: f.c/ m.: be pro3ed 10ic0 1ould i-3.lid./e .-: docume-/% or
'hich 'ould entitle any person to any decree or order relating thereto% such as
fr.ud7 i-/imid./io-7 ille2.li/:7 1.-/ for due e6ecu/io-7 1.-/ of c.p.ci/: i- .-:
co-/r.c/i-2 p.r/:7 1.-/ or f.ilure of co-sider./io-7 or . mis/.Ce i- f.c/ or l.1.
$ro3iso (2) " he existence of any sep.r./e or.l .2reeme-/s /o m.//er o- 10ic0
. docume-/ is sile-/% and 'hich is not inconsistent 'ith its terms% m.: be pro3ed.
In considering 'hether or not this proviso applies% the *ourt shall have regard to the
degree of formality of the document.
$ro3iso (3) " he existence of any sep.r./e or.l .2reeme-/7 co-s/i/u/i-27 .
co-di/io- precede-/ /o /0e .//.c0i-2 of .-: obli2./io- under any such contract%
grant or disposition of property% may be proved.

B8A
-ec B43
. .
,2+ E6clusio- of e3ide-ce or or.l .2reeme-/
$ro3iso (>) " he existence of any sep.r./e or.l .2reeme-/7 co-s/i/u/i-27 .
co-di/io- precede-/ /o /0e .//.c0i-2 of .-: obli2./io- under any such contract%
grant or disposition of property% m.: be pro3ed% except in cases in 'hich such
contract% grant or disposition of property% is by la' re5uired to be in 'riting% or has
been registered according to the la' in force for the time being as to the registration
of documents.
$ro3iso (A) " Any us.2e or cus/om b: 10ic0 i-cide-/s -o/ e6pressl: me-/io-ed
i- .-: co-/r.c/ .re usu.ll: .--e6ed to contracts of that description may be proved.
$rovided that the annexing of such incident 'ould not be repugnant to% or inconsistent
'ith% the express terms of the contract.
$ro3iso (!) " Any f.c/ may be proved 'hich sho's in 'hat m.--er /0e l.-2u.2e of
. docume-/ is rel./ed /o e6is/i-2 f.c/s.
Sec ,>+ E6clusio- of e3ide-ce .2.i-s/ .pplic./io- of docume-/ of e6is/i-2 f.c/s
5 D0e- l.-2u.2e used i- . docume-/ is pl.i- i- i/self7 .-d 10e- i/ .pplies
.ccur./el: /o e6is/i-2 f.c/s% evidence may not be given to sho' that it 'as not
meant to apply to such facts.
B>C
-ec B43
. .
4 0an the A& ta4e circumstantial e!idence into account :
n s o t r umst nt l
v n t tot l t o r umst n s
s ot to t n nto ount n t
om n t o ll t r umst n s
s t rm n t v o t 3u st on s to
# t r or not p rt ul r t s
prov
8I @. !'#es+w'r =r's'd "'4-' (196() 6( I! 6%$

(2--)
4 0an the A& re#ect affida!its filed " the Assessee :
*t cannot e re#ected straightawa" on the ground that no material

e!idence is filed to pro!eE (e#ection of an affida!it is not #ustified unless
the assessee is either cross-examined or called upon to produce
documentar" e!idence in support of the affida!it sworn " him
.7 )o+'n 7'- Gu3t' @. 8I (19%() $$ I! 7(6 (2--)
4 0an the A& re#ect the documents filed " the assessee as e!idence H
on what ground :
:esE $he A& can loo4 into the genuineness & !alidit" of
documents filed " assessee and re#ect them if not found to e not
genuine or !alid .IE @. C A'0'r'#'n (19(7) 16( I! 7%7 (&'d)
$he taxing authorities are not reGuired to put up lin4ers while

loo4ing at the documents produced efore themE $he" are entitled to
loo4 into the surrounding circumstances to find out the realit" of the
recitals made in those documentsE .8I @. /ur4' =r's'd &ore
(1971) (2 I! %40 ()8)
B>B
-ec B43
. .
4 Assessee o#ected to the use of some material " the A& on the ground
that it was an e!idence not admissile in the court of law and the
A& has powers of a ci!il court s t o t on
v l:
ro n s un r t , t r not
u l pro n s s 2 , tt r
# t or oun t n l rul s out
v n ont n n t n n
v n t n s nt tl to t
on m t r l # m not pt l
s v n n ourt o l #
/+'n?es'ri 8otton &i--s @. 8I (19%4) 26 I! 77%

()8)
, s o s not m n t t # n t
t x n ut or t s r s rous o
nvo n t prov s ons o v n t
t r pr v nt rom o n so
8+u+'r#'- @. 8I 172 I! 2%0,2%% ()8)
, ss ssm nt o n om s m on t
s s o n r n on v n # n
r m n l or v l ust m
nsu nt
/ebi "ur#'n @. 8I '5 7! 4%2, 4%6.%7 (8'-)

4 Assessee filed an affida!it from a third part" confirming that a
particular transaction challenged m" A& did ta4e placeE 0an the A&
re#ect the affida!it :
A declaration in an affida!it cannot e re#ected in the asence

of an" e!idence to show that the declaration was ogus and unreliale
.7'?s+#i ;'r'0'n G'dodi' F 8o (194$) 91 I! 1( ()8)
Enus on 2E to s+ow t+'t it is unre-i'b-e &'teri'- to su33ort

3refer'b-e
+e re*enue c'nnot c+'--en4e un-ess 8!E)).9>2&I;2IE;

&e+t' ='ri?+ F 8o. (19%6) $0 I! 1(1 ()8), 8'n be +e-d unre-i'b-e
on b'sis of ot+er #'teri'-. )#t Gun'w'ti "'i @. 8I
(19($) 12 '5#'n (6 (&=)
B>D
-ec B43
. .
4 &n whom lies the urden of proof in the assessment proceedings T
4 )or estalishing that statement or information filed in return is not
correct :
n n st l s t s s o# n
t t (
information gi!en " assessee in return is not consistent with
other information, documents, accounts, explanations,
e!idence pro!ided " him
*nformation gi!en " assessee is false as estalished from other
material on record which assessee was confronted with, ut
could not explain satisfactoril"
)ailure of the assessee to pro!ide an" documentar" support of
claims made " him & failure to offer an" acceptale
explanation for such a failure
*nformation or explanation pro!ided " assessee pro!es that his
returned income is not computed as per law
0ircumstantial e!idence on record, after ta4ing explanation or
o#ections of assessee into consideration estalishes that his
returned income is not correct
$he income returned is not in conformit" with the oo4s of
accounts, and no acceptale explanation is offered " the
assessee
$he oo4s of accounts are re#ected after ta4ing into
consideration whate!er the assesee has to offer as explanation
or e!idence
;" estalishing that the documents sumitted " assessee are
not genuine or are fraudulent in nature, and no satisfactor"
explanation is offered " assessee
;" showing that the certain rele!ant facts were not disclosed "
the assessee nor an" explanation is offered in this regard
B>3
-ec B43
. .
4 &n whom lies the urden of proof in the assessment proceedings T
4 )or estalishing that statement or information filed in return is
correct :
n ss ss n st l s t s
(
%ro!iding details, documents, information reGuired " A&
0onfirmation of certain transactions from third parties
'xplanations aout missing information 1 documents
-howing lin4 etween income returned and oo4s of acounts
4 )or estalishing that an explanation sumitted " the assessee is not

acce-ta1le:
n n st l s t s
(
-%'AS*+, &(D'( detailing the reasons , iEeEE 9aterial and
logic ecause of which the explanation sumitted " the
assessee is not acceptale
4 )or estalishing that a document sumitted " the assessee is not

relia1le:
n n st l s t s
(
-%'AS*+, &(D'( detailing the reasons , iEeEE 9aterial and
logic ecause of which the document sumitted " the
assessee is not reliale
;" showing that the document is not genuine
;" pointing out inconsistencies in the document with other
materials or explanations sumitted " assessee, after gi!ing
the assessee an opportunit" to e heard
B>4
-ec B43
. .
4 0an the A& ta4e into account the statement of a third part":
1 s ut onl t r v n t ss ss
n opportun t o ross x m n n t
t r p rt , ross x m n t on o
t t r p rt t ss ss s oul
r or n pt on r or n u
ons r t on must v n to n
n ons st n s r s n out o su ross
x m n t on
.)t'te of Cer'-' @. C )+'du-i Yusuf (1977) $9 ) 47(

()8)
4 *f the A& does not mention the reasons for ma4ing an addition, is the
order !alid :
*t is *+=AL*D liale to e Guashed.&'+indr' F

&'+indr' @. HEI (2I!) (1979) )8 79(, (2$, 8I @. )under-'- (1974) 96
I! $10
4 0an the A& rel" on e!idence that has ne!er een rought to the notice
of the assessee:
+oE *t will !iolate the principles of natural #usticeE . &E

+o#'?utt0 @. 8I (19%() $4 I! %01 (Cer)
&pportunit" to assessee to reut material is

essential.=on?unn'# r'ders @. 2dd- IE (1972) ($ I! %0(
(Cer)
4 0an the A& ma4e an addition on the ground that the assessee has
een e!ading taxes in earlier "ears:
+oE Assessment should not e ased on irrele!ant materialE

. /+ir'B-'- Gird+'r-'- @. 8I (19%4) 26 I! 7$6 ()8)
Ti0e li0it )or co0-letion o) a..e..0ent. and rea..e..0ent.3 Ti0e li0it )or co0-letion o) a..e..0ent. and rea..e..0ent.3
Sec (B=3 (() No order o) a..e..0ent .*all 1e 0ade under

.ection (9= or .ection (99 at any ti0e a)ter t*e e8-iry o)
(a) t+o year. )ro0 t*e end o) t*e a..e..0ent year in
+*ic* t*e inco0e +a. )ir.t a..e..a1le @ or () one "ear from
the end of the financial "ear in which a return or a re!ised return
relating to the a..e..0ent year co00encin5 on t*e (.t day
o) A-ril, (>AA, or any earlier a..e..0ent year, is filed under
su-section (4) or su-section (2) of section B3A, whiche!er is
later 7
!ro,ided that in case the a..e..0ent year in which the income

was first assessale is the assessment "ear co00encin5 on
t*e (.t day o) A-ril, '669 or any .u1.eKuent a..e..0ent
year, the pro!isions of clause (a) shall ha!e effect a. i) )or t*e
+ord. t+o year., t*e +ord. t+enty/one 0ont*. *ad 1een
.u1.tituted7
!ro,ided further that in case the a..e..0ent year in which the income
was first assessale is the assessment "ear co00encin5 on t*e (.t day
o) A-ril, '66B or any .u1.eKuent a..e..0ent year and during the
course of the proceeding for the assessment of total income, a re)erence
under .u1/.ection (() o) .ection >'CA (i) +a. 0ade 1e)ore t*e (.t
day o) 7une, '664 1ut an order under .u1/.ection (=) o) t*at
.ection *a. not 1een 0ade 1e)ore .uc* date2 or (ii) i. 0ade on or
a)ter t*e (.t day o) 7une, '664, the pro!isions of clause (a) shall,
not+it*.tandin5 anyt*in5 contained in t*e )ir.t -ro,i.o, ha!e effect
a. i) )or t*e +ord. t+o year., t*e +ord. t*irty/t*ree 0ont*. had
een sustitutedE
-ec B43
. .
REFEREN(E TO TRANSFER $RI(IN% OFFI(ER
B>8
-ec B43
. .
lTlTNG Ol RlT|RN
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( ) / !8O 4
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. . 8O O
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- \Y ?OOO !O
. . 8! !?
!!
T
T
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T
AY 2009-10
FY 2010-11
FY 2010-11
/ ( ) ( )/ ( ) Nc!!cc u s !4? ! !! !!!
1est ;,d*-ent assess-ent 1est ;,d*-ent assess-ent
Sec (99 (() I) an" person
(a) )ail. to 0a@e t*e return reGuired under .u1/.ection (()

o) .ection (=> and has not made a return or a re!ised return
under .u1/.ection (9) or .u1/.ection (B) of that section, or
(b) )ail. to co0-ly +it* all t*e ter0. o) a notice issued

under .u1/.ection (() o) .ection (9' or fails to compl" with
a direction issued under .u1/.ection ('A) of that section, or
(c) ha!ing made a return, )ail. to co0-ly +it* all t*e

ter0. o) a notice issued under .u1/.ection (') o) .ection
(9=,
the Assessing &fficer, a)ter ta@in5 into account all rele,ant

0aterial which the Assessing &fficer has gathered, shall, a)ter
5i,in5 t*e a..e..ee an o--ortunity o) 1ein5 *eard, 0a@e
t*e a..e..0ent o) t*e total inco0e or lo.. to t*e 1e.t o)
*i. Qud50ent and deter0ine t*e .u0 -aya1le " the
assessee on the asis of such assessment 7
-ec B44
. .
Sec (99 DDD3
!ro,ided that .uc* o--ortunity .*all 1e 5i,en 1y t*e

A..e..in5 O))icer " ser!ing a notice callin5 u-on t*e
a..e..ee to .*o+ cau.e, on a date and ti0e to 1e
.-eci)ied in t*e notice, +*y t*e a..e..0ent .*ould not
1e co0-leted to t*e 1e.t o) *i. Qud50ent 7
!ro,ided )urt*er that it shall not e necessar" to gi!e such

opportunit" in a case +*ere a notice under .u1/.ection (()
o) .ection (9' *a. 1een i..ued -rior to t*e 0a@in5 o) an
a..e..0ent under t*i. .ectionE
(') $he pro!isions of this section as the" stood immediatel"

efore their amendment " the Direct $ax Laws (Amendment)
assessment for the a..e..0ent year co00encin5 on t*e
(.t day o) A-ril, (>AA, or any earlier a..e..0ent year
and references in this section to the other pro!isions of this Act
shall e construed as references to those pro!isions as for the
"earE
-ec B44
. .
Sec (99 (() I)an" person (a)DD3
(b) )ail. to co0-ly +it* )ail. to co0-ly +it* all t*e ter0. o) a notice all t*e ter0. o) a notice issued
under .u1/.ection (() o) .ection (9' or fails to compl" with a
direction issued under .u1/.ection ('A) of that section, or
(c) ha!ing made a return, )ail. to co0-ly +it* )ail. to co0-ly +it* all t*e ter0. all t*e ter0.
o) a notice o) a notice issued under .u1/.ection (') o) .ection (9=,
the Assessing &fficer, a)ter ta@in5 into account all rele,ant 0aterial
which the Assessing &fficer has gathered, shall, a)ter 5i,in5 t*e
a..e..ee an o--ortunity o) 1ein5 *eard, 0a@e t*e a..e..0ent
o) t*e total inco0e or lo.. to t*e 1e.t o) *i. Qud50ent and
deter0ine t*e .u0 -aya1le " the assessee on the asis of such
assessment 7
-ec B44
. .
c!m)ies .ith ?O?E !f the ten terms !f a n!tice u(s1B2 (1)(ii)7(iii)
OR
c!m)ies .ith ?2?E !f the ten terms !f a n!tice u(s1B2 (1)(ii)7(iii)
>>>>>>>>>
B?C
-ec B44
. .
K$he main contention of the assessee is that most of the oo4s which
were not produced were irrele!ant to the enGuir" and P*$&PE was in a
position to ma4e the assessment on information furnished " the
account oo4s which were actuall" produced PPconseGuentl" it could
not e said that there was an" non compliance with the terms of the
notice issued under su sec (4) of -ec DDE PPEE-u sec (4) of -ec D3
enacts that if an" person fails to compl" with all the terms of a notice fails to compl" with all the terms of a notice
issued under su section (4) of -ec DD, the *$& shall ma4e the
assessment to the est of his #udgmentE (eading these two pro!isions
of law together the onl" conclusion that can reasonal" e deduced is
that it is the reGuirement of the *$& which is to e satisfied " the
assessee under su sec (4) of sec DD and not what the assessee thin4s
the *$&, should, in the circumstances of the case, ha!e reGuiredE *n
other words, the final ariter of what is reGuired is the *$& and not the
assesseeE *f, therefore, there is an" non compliance with an" of the
terms of the notice issued under su sec (4) of -ec DD, the assessee
ma4es himself liale to e assessed under susec (4) of -ec D3E $o put
an" other construction on the clear wording of the -tatute as contained
in susec (4) of -ec DD or su sec (4) of -ec D3 would amount to
sustituting the assesses for the *$& to determine what materials are
necessar" to e produced in order to enale the *$& to arri!e at a #ust
estimate of an assesseeIsincomeE $his could ne!er ha!e een the
intention of the Legislature while enacting these pro!isionsEL
.u-sid's ;'4in 8+'nd@s. 8I, =unB'b , 6 I! $(%
B?B
-ec B44
. .
4 When the assessee does not compl" with notices u1s B4D(B) & 1 or
B43(D) and there is !er" little information a!ailale what should the
A& do: -hould he go for o!er assessment to protect the interest of
re!enue : 0an o!erassessment gi!e rise to an" prolem :
ult o t# n
prot t n nt r st o r v nu
r t n un oll t l m n
v r p t ss ssm nts s oul

vo
, t ro# up ost o pro l ms l

n l t on o m n n n r t on o
unn ss r n unpro u t v #or ,
n ss t o ur n t t n n on t
p rt o s to m p t
ss ssm nts n r s v un oll t l
m n s s n mp s s t o r
rom t m to t m sp t t s
nstru t ons t t n n s not n
m t , o r t r or s r s
t t su s oul vo m n su
t p o ss ssm nts
Instruction ;o. 767, d'ted 4.10.74

4 0an an order u1s B44 e passed in a case where assessee fails to
compl" with summons issued to him:
+oE $here has a specific non-compliance as pro!ided in -ec B44

(B) clause (a), A) or (c).&o+ini /ebi &'-3'ni @. IE
[1970]77 itr 674 (8'-)
B?D
-ec B44
. .
4 0an an order u1s B44 e passed where the assessee has filed a return
with all columns lan4 :
s n su s ss ss # ll
tr t s v n l to l r turn
o n om n or r u s n
p ss
!'#c+'nd /+unic+'nd of Guru "'I'r @. 8I $ I8

69 (7'+ore)
4 0an the A& resort to -ec B44 where the assessee has filed a return on
the asis of approximate figures without an" further details:
:esE E .2 ! 2 ; 8+etti'r Fir# @. 8I 2 I8 477

(!'n4oon)
4 *f the A& wants to appl" comparale ratios for passing an order u1s
B44, is he reGuired to gi!e a further opportunit" to the assessee of
eing heard in this matter :
:es.C "'-i'+ @. 8I (196%) %6 I! 1(2 (&0s)
4 What are the precautions to ta4e while ma4ing order u1s B44:
rel" on a!ailale material to the extent possile PPPPEE)t'te of

Cer'-' @ 8 @e-'?utt0 (1966) 60 I! 2$9 ()8)
estimate must e honest and fair PPPPPEE"riB "+us+'n 7'-

='rdu#'n Cu#'r @. 8I (197() 11% I! %24 ()8)
action must not e dishonest, !indicti!e or capricious.8I

@. 7'5#in'nr'0'n "'drid's (19$7) % I! 170 (=8)
Po4er o+ Po4er o+ 2oint Co--issioner to iss,e directions in certain 2oint Co--issioner to iss,e directions in certain
cases cases
Sec (99A A 7oint Co00i..ioner ma", on *i. o+n 0otion or

on a re)erence 1ein5 0ade to *i0 1y t*e A..e..in5
O))icer or on t*e a--lication o) an a..e..ee, call )or and
e8a0ine t*e record o) any -roceedin5 in +*ic* an
a..e..0ent i. -endin5 and, i) *e con.ider. that, ha!ing
regard to the nature of the case or the amount in!ol!ed or for
an" other reason, it i. nece..ary or e8-edient so to do, he
0ay i..ue .uc* direction. a. *e t*in@. )it )or t*e
5uidance o) t*e A..e..in5 O))icer to enale him to
complete the assessment and .uc* direction. .*all 1e
1indin5 on the Assessing &fficer 7
!ro,ided that no directions which are pre#udicial to the assessee

shall e issued efore an o--ortunity i. 5i,en to t*e
a..e..ee to 1e *eardE
Explanation. )or the purposes of this section no direction a. to

t*e line. on +*ic* an in,e.ti5ation connected +it* t*e
a..e..0ent .*ould 1e 0ade, .*all 1e dee0ed to 1e a
direction -reQudicial to t*e a..e..eeE
-ec B44A
. .
!e+erence to disp,te resol,tion panel !e+erence to disp,te resol,tion panel
Sec (99C (() T*e A..e..in5 O))icer .*all, not+it*.tandin5

anyt*in5 to the contrar" contained in this Act, in the first instance,
)or+ard a dra)t o) t*e -ro-o.ed order o) a..e..0ent
(hereafter in this section referred to as the draft order) to t*e
eli5i1le a..e..ee if if *e -ro-o.e. to 0a@e, on or after the Bst da"
of &ctoer, DCCA, any ,ariation in t*e inco0e or loss returned
which is pre#udicial to the interest of such assesseeE
(') &n receipt of the draft order, the eli5i1le a..e..ee .*all, +it*in
t*irty day. of the receipt " him of the draft order,
(a) file his acce-tance of the !ariations to the Assessing

&fficer@ or
(1) file his o1Qection., if an", to such !ariation with,
(i) the Di.-ute Re.olution !anel@ and
(ii) the A..e..in5 O))icerE
(=) $he Assessing &fficer .*all co0-lete t*e a..e..0ent on t*e

1a.i. o) t*e dra)t order, i)
(a) the assessee intimates to the Assessing &fficer t*e

acce-tance of the !ariation@ or
(1) no o1Qection. are recei,ed within the -eriod specified in

su-section (D)E
-ec B44 0
. .
Sec (99C (()
(9) $he A..e..in5 O))icer shall, notwithstanding an"thing contained in

section B23, pass the a..e..0ent order under .u1/.ection (=)
+it*in one 0ont* )ro0 t*e end o) t*e 0ont* in +*ic*,
(a) the acce-tance is recei!ed@ or
(1) the -eriod o) )ilin5 o) o1Qection. under su-section (D)

e8-ire.E
(B) $he Di.-ute Re.olution !anel .*all, in a case +*ere any

o1Qection i. recei,ed under su-section (D), i..ue .uc* direction.,
a. it t*in@. )it, )or t*e 5uidance o) t*e A..e..in5 O))icer to
enale him to complete the assessmentE
(?) $he Dispute (esolution %anel shall issue the directions referred to in
su-section (2), a)ter con.iderin5 the following, namel"7
(a) draft order@
(1) o#ections filed " the assessee@
(c) e!idence furnished " the assessee@
(d) report, if an", of the Assessing &fficer, =aluation &fficer or $ransfer

%ricing &fficer or an" other authorit"@
(e) records relating to the draft order@
()) e!idence collected ", or caused to e collected ", it@ and
(5) result of an" enGuir" made ", or caused to e made ", itE
-ec B44 0
. .
Sec (99C (()
(4) $he Di.-ute Re.olution !anel 0ay, efore issuing an" directions
referred to in su-section (2),
(a) ma4e such )urt*er enKuiry, as it thin4s fit@ or
(1) cau.e any )urt*er enKuiry to 1e 0ade 1y any inco0e/

ta8 aut*ority and re-ort the result of the same to itE
(A) $he Dispute (esolution %anel ma" con)ir0, reduce or en*ance t*e
,ariation. -ro-o.ed in t*e dra)t order so, howe!er, that it .*all
not .et a.ide any -ro-o.ed ,ariation or i..ue any direction
under .u1/.ection (B) )or )urt*er enKuiry and -a..in5 o) t*e
a..e..0ent order3
(>) *f the memers of the Dispute (esolution %anel differ in opinion on

an" point, the point shall e decided accordin5 to the opinion of the
0aQority of the memersE
((6) '!er" direction i..ued 1y t*e Di.-ute Re.olution !anel shall

e 1indin5 on t*e A..e..in5 O))icer3
((() No direction under su-section (2) shall e issued unle.. an

o--ortunity o) 1ein5 *eard i. 5i,en to t*e a..e..ee and t*e
A..e..in5 O))icer on such directions which are pre#udicial to the
interest of the assessee or the interest of the re!enue, respecti!el"E
((') No direction under su-section (2) shall e issued a)ter nine

0ont*. )ro0 t*e end o) t*e 0ont* in +*ic* t*e dra)t order i.
)or+arded to t*e eli5i1le a..e..eeE
-ec B44 0
. .
Sec (99C (()
((=) .pon receipt of the directions issued under su-section (2), the
A..e..in5 O))icer .*all, in conformit" with the directions, co0-lete,
notwithstanding an"thing to the contrar" contained in section B23, the
a..e..0ent +it*out -ro,idin5 any )urt*er o--ortunity o) 1ein5
*eard to t*e a..e..ee, +it*in one 0ont* )ro0 t*e end o) t*e
0ont* in +*ic* .uc* direction i. recei,ed3
((9) $he $oard 0ay 0a@e rule. for the purposes of the efficient
functioning of the Dispute (esolution %anel and expeditious disposal of
the o#ections filed under su-section (D) " the eligile assesseeE
((B) )or the purposes of this section,
(a) Di.-ute Re.olution !anel means a colle5iu0 co0-ri.in5

o) t*ree Co00i..ioner. o) Inco0e/ta8 con.tituted 1y t*e $oard
)or t*i. -ur-o.e@
(1) eli5i1le a..e..ee means,
(i) any -er.on in +*o.e ca.e t*e ,ariation referred

to in su-section (B) ari.e. as a con.eKuence o) t*e order o)
t*e Tran.)er !ricin5 O))icer passed under su-section (3) of
section AD0A@ and
(ii) any )orei5n co0-anyE

-ec B44 0
. .
Inco-e escapin* assess-ent Inco-e escapin* assess-ent
Sec (943 *f the A..e..in5 O))icer *a. rea.on to 1elie,e

that any inco0e c*ar5ea1le to ta8 *a. e.ca-ed
a..e..0ent )or any a..e..0ent year, *e 0ay, su#ect to
the pro!isions of sections B4? to B23, a..e.. or rea..e..
.uc* inco0e and al.o any ot*er inco0e c*ar5ea1le to
ta8 +*ic* *a. e.ca-ed a..e..0ent and +*ic* co0e. to
*i. notice .u1.eKuently in the course of the proceedings
under this section, or recompute the loss or the depreciation
allowance or an" other allowance, as the case ma" e, for the
assessment "ear concerned (hereafter in this section and in
sections B4? to B23 referred to as the rele!ant assessment
"ear) 7
!ro,ided that +*ere an a..e..0ent under .u1/.ection (=)

o) .ection (9= or t*i. .ection has een made for the
rele!ant assessment "ear, no action .*all 1e ta@en under
t*i. .ection a)ter t*e e8-iry o) )our year. )ro0 t*e end
o) t*e rele,ant a..e..0ent year, unle.. an" income
chargeale to tax has escaped assessment for such assessment
"ear " rea.on o) t*e )ailure on t*e -art o) t*e a..e..ee
to 0a@e a return under .ection (=> or in re.-on.e to a
notice i..ued under .u1/.ection (() o) .ection (9' or
.ection (9A or to di.clo.e )ully and truly all 0aterial
)act. nece..ary )or *i. a..e..0ent, )or t*at a..e..0ent
year7
-ec B4>
. .
Sec (943
!ro,ided )urt*er t+'t t+e 2ssessin4 Efficer -a( assess or

reassess s,ch inco-e, other than the inco-e in)ol)in*
-atters 4hich are the s,b;ect<-atter o+ an( appeal=
re+erence or re)ision, w+ic+ is c+'r4e'b-e to t'5 'nd +'s
esc'3ed 'ssess#ent.
Explanation %. !roduction efore the Assessing &fficer o)

account 1oo@. or ot*er e,idence from which material
e!idence could with due diligence ha!e een disco!ered " the
Assessing &fficer will not nece..arily a0ount to di.clo.ure
within the meaning of the foregoing pro!isoE
Explanation 6. )or the purposes of this section, the )ollo+in5

.*all al.o 1edee0ed to 1e ca.e. +*ere inco0e
c*ar5ea1le to ta8 *a. e.ca-ed a..e..0ent, namel" 7
.. (;9> )7I/9) .. (;9> )7I/9)
Explanation &. )or the purpose of assessment or reassessment

under this section, the Assessing &fficer 0ay a..e.. or
reassess t*e inco0e in re.-ect o) any i..ue, +*ic* *a.
e.ca-ed a..e..0ent, and such issue comes to his notice
suseGuentl" in the course of the proceedings under this
section, not+it*.tandin5 t*at t*e rea.on. )or .uc* i..ue
*a,e not 1een included in t*e rea.on. recorded under
su-section (D) of section B4?EE
-ec B4>
. .
Sec (943
Explanation 6. )or the purposes of this section, the )ollo+in5 .*all

al.o 1edee0ed to 1e ca.e. +*ere inco0e c*ar5ea1le to dee0ed to 1e ca.e. +*ere inco0e c*ar5ea1le to
ta8 *a. e.ca-ed a..e..0ent ta8 *a. e.ca-ed a..e..0ent, namel" 7
(a)where no return o) inco0e *a. 1een )urni.*ed " the
assessee although his total inco0e or the total income of
an" other person in respect of which he is assessale under
this Act during the pre!ious "ear e8ceeded t*e 0a8i0u0
a0ount +*ic* i. not c*ar5ea1le to inco0e/ta8 @
(b) where a return o) inco0e *a. 1een )urni.*ed " the

assessee ut no a..e..0ent has een made and it is noticed
1y t*e A..e..in5 O))icer t*at t*e a..e..ee *a.
under.tated t*e inco0e or has claimed excessi!e loss,
deduction, allowance or relief in the return @
(c) where an a..e..0ent *a. 1een 0ade, 1ut
(i) inco0e c*ar5ea1le to ta8 *a. 1een

undera..e..ed @ or
(ii) such income has een a..e..ed at too lo+ a rate @

or
(iii) such income has een made the su#ect of e8ce..i,e

relie) under this Act@ or
(i*) e8ce..i,e lo.. or de-reciation allo+ance or any

ot*er allo+ance under this Act has een computedE
-ec B4>
. .
Sec (9A3(() $e)ore 0a@in5 t*e a..e..0ent, rea..e..0ent or

reco0-utation under .ection (94, the A..e..in5 O))icer
.*all .er,e on t*e a..e..ee a notice reGuiring him to )urni.*
+it*in .uc* -eriod, a. 0ay 1e .-eci)ied in the notice, a
return o) *i. inco0e or the income of an" other person in
respect of which he is assessale under this Act during the
pre!ious "ear corresponding to the rele!ant assessment "ear, in
the prescried form and !erified in the prescried manner and
setting forth such other particulars as ma" e prescried@ and the
-ro,i.ion. o) t*i. Act shall, so far as ma" e, a--ly accordingl"
a. i) .uc* return +ere a return reKuired to 1e )urni.*ed
under .ection (=> 7
!ro,ided that in a case
(') where a return *a. 1een )urni.*ed durin5 t*e -eriod

commencing on the Bst da" of &ctoer, BAAB and ending on the
3Cth da" of -eptemer, DCC2 in response to a notice ser!ed under
this section, and
(b) suseGuentl" a notice *a. 1een .er,ed under .u1/.ection

(') o) .ection (9= a)ter t*e e8-iry o) t+el,e 0ont*.
.-eci)ied in t*e -ro,i.o to .u1/.ection (') o) .ection (9=, a.
it .tood i00ediately 1e)ore t*e a0end0ent o) .aid .u1/
.ection 1y t*e Finance Act, '66' ('6 o) '66') ut efore the
expir" of the time limit for ma4ing the assessment, re-assessment
or recomputation as specified in su-section (D) of section B23,
e,ery .uc* notice re)erred to in t*i. clau.e .*all 1e dee0ed
to 1e a ,alid noticeC
-ec B4?
. .
Sec (9AD33
!ro,ided )urt*er that in a case
(') where a return has een furnished during the period

commencing on the (.t day o) Octo1er, (>>( and endin5
on t*e =6t* day o) Se-te01er, '66B, in response to a
notice ser!ed under this section, and
(b) suseGuentl" a notice has een ser!ed under clau.e (ii)

o) .u1/.ection (') o) .ection (9= a)ter t*e e8-iry o)
t+el,e 0ont*. specified in the pro!iso to clause (ii) of su-
section (D) of section B43, ut efore the expir" of the time
limit for ma4ing the assessment, reassessment or
recomputation as specified in su-section (D) of section B23,
e,ery .uc* notice re)erred to in t*i. clau.e .*all 1e
dee0ed to 1e a ,alid noticeE
Explanation. )or the remo!al of douts, it is here" declared

that not*in5 contained in t*e )ir.t -ro,i.o or t*e .econd
-ro,i.o .*all a--ly to any return which has een
)urni.*ed on or a)ter t*e (.t day o) Octo1er, '66B in
response to a notice ser!ed under this sectionE
(') $he A..e..in5 O))icer .*all, 1e)ore i..uin5 any notice

under this section, record *i. rea.on. )or doin5 .oE
-ec B4?
. .
Ti-e li-it +or notice Ti-e li-it +or notice
Sec (9>3 (B) +o notice under section B4? shall e issued for
the rele!ant assessment "ear,
(a) i) )our year. *a,e ela-.ed from the end of the rele!ant
assessment "ear, unle.. the case falls under clause (b)@
(b) i) )our year., 1ut not 0ore t*an .i8 year., *a,e
ela-.ed from the end of the rele!ant assessment "ear unle..
the inco0e c*ar5ea1le to ta8 +*ic* *a. e.ca-ed
a..e..0ent amounts to or is li4el" to amount to one la@*
ru-ee. or 0ore for that "earE
Explanation. *n determining income chargeale to tax which has

escaped assessment for the purposes of this su-section, the
-ro,i.ion. o) Explanation 6 o) .ection (94 .*all a--ly as
the" appl" for the purposes of that sectionE
(') $he -ro,i.ion. o) .u1/.ection (() as to the issue of notice

shall e .u1Qect to t*e -ro,i.ion. o) .ection (B(E
-ec B4A
. .
Ti-e li-it +or notice Ti-e li-it +or notice
Sec (9>3 (=) *f the person on whom a notice under section

B4? is to e ser!ed is a -er.on treated a. t*e a5ent o) a
non/re.ident under .ection (?= and the a..e..0ent,
rea..e..0ent or reco0-utation to e made in pursuance
of the notice is to e made on him as the agent o) .uc* non/
re.ident, the notice .*all not 1e i..ued a)ter t*e e8-iry
o) a -eriod o) t+o year. from the end of the rele!ant
assessment "earE
-ec B4A
. .
!ro,i.ion )or ca.e. +*ere a..e..0ent i. in -ur.uance o) an order on !ro,i.ion )or ca.e. +*ere a..e..0ent i. in -ur.uance o) an order on
a--eal, etc3 a--eal, etc3
Sec (B63(() +otwithstanding an"thing contained in section

B4A, the notice under .ection (9A 0ay 1e i..ued at any
ti0e for the purpose of ma4ing an assessment or
reassessment or recomputation in con.eKuence o) or to
5i,e e))ect to any )indin5 or direction contained in an
order -a..ed 1y any aut*ority in any -roceedin5 under
t*i. Act " wa" of a--eal, re)erence or re,i.ion or 1y a
Court in any -roceedin5 under any ot*er la+E
(D) $he pro!isions of su-section (() .*all not a--ly in an"

case where an" such assessment, reassessment or
recomputation as is referred to in that su-section relates to
an assessment "ear in respect of which an assessment,
reassessment or recomputation could not ha!e een made at
the time the order which was the su#ect-matter of the
appeal, reference or re!ision, as the case ma" e, was made
1y rea.on o) any ot*er -ro,i.ion li0itin5 t*e ti0e
within which an" action for assessment, reassessment or
recomputation ma" e ta4enE
-ec B2C
. .
Sanction +or iss,e o+ notice Sanction +or iss,e o+ notice
Sec (B(3 (() *n a case where an a..e..0ent under .u1/.ection

(=) o) .ection (9= or .ection (94 *a. 1een 0ade for the
rele!ant assessment "ear, no notice .*all 1e i..ued under
.ection (9A " an Assessing &fficer, who is elow the ran4 of
Assistant 0ommissioner or Deput" 0ommissioner, unle.. t*e
7oint Co00i..ioner i. .ati.)ied on t*e rea.on. recorded
1y .uc* A..e..in5 O))icer t*at it i. a )it ca.e for the issue of
such notice 7
!ro,ided that, a)ter t*e e8-iry o) )our year. from the end of
the rele!ant assessment "ear, no .uc* notice shall e issued
unle.. t*e C*ie) Co00i..ioner or Co00i..ioner i.
.ati.)ied, on the reasons recorded " the Assessing &fficer
aforesaid, t*at it i. a )it ca.e for the issue of such noticeE
(') *n a case ot*er t*an a ca.e )allin5 under .u1/.ection ((),

no notice shall e issued under section B4? " an Assessing
&fficer, who is elow the ran4 of 6oint 0ommissioner, a)ter t*e
e8-iry o) )our year. from the end of the rele!ant assessment
"ear, unle.. t*e 7oint Co00i..ioner i. .ati.)ied, on the
reasons recorded " such Assessing &fficer, t*at it i. a )it ca.e
for the issue of such noticeE
E8-lanation3 For t+e re#o*'- of doubts, it is +ereb0 dec-'red t+'t

t+e Aoint 8o##issioner, t+e 8o##issioner or t+e 8+ief
8o##issioner, 's t+e c'se #'0 be, bein4 s'tisfied on t+e
re'sons recorded b0 t+e 2ssessin4 Efficer 'bout fitness of ' c'se
for t+e issue of notice under section 14(, need not iss,e s,ch
notice hi-sel+.
-ec B2B
. .
Sec (B'3(() *n an assessment, reassessment or recomputation

made under section B4>, the ta8 .*all 1e c*ar5ea1le at
t*e rate or rate. at +*ic* it +ould *a,e 1een c*ar5ed
*ad t*e inco0e not e.ca-ed a..e..0entE
(') F*ere an a..e..0ent i. reo-ened under .ection (94,

the a..e..ee 0ay, if he has not impugned an" part of the
original assessment order for that "ear either under sections
D48 to D4? or under section D84, clai0 t*at t*e
-roceedin5. under .ection (94 .*all 1e dro--ed on *i.
.*o+in5 t*at *e *ad 1een a..e..ed on an a0ount or
to a .u0 not lo+er t*an +*at *e +ould 1e ri5*tly
lia1le )or e!en if the income alleged to ha!e escaped
assessment had een ta4en into account, or the assessment
or computation had een properl" made 7
!ro,ided that in so doing he shall not 1e entitled to reo-en

0atter. concluded 1y an order under .ection (B9, (BB,
'?6, '?', or '?=E
-ec B2D
. .
Sec (B= (') No order o) a..e..0ent, rea..e..0ent or

reco0-utation shall e made under .ection (94 a)ter t*e
e8-iry o) one year )ro0 t*e end o) t*e )inancial year in
+*ic* t*e notice under .ection (9A +a. .er,ed 7
!ro,ided that where the notice under .ection (9A was ser!ed
on or after the (.t day o) A-ril, (>>> 1ut 1e)ore t*e (.t
day o) A-ril, '666, such assessment, reassessment or
recomputation ma" e made at an" time u- to t*e =(.t day
o) Marc*, '66' 7
!ro,ided further that where the notice under .ection (9A

+a. .er,ed on or a)ter the (.t day o) A-ril, '66B, the
pro!isions of this su-section shall ha!e effect a. i) )or t*e
+ord. one year, the words nine 0ont*. had een
sustituted 7
!ro,ided also that where the notice under .ection (9A +a.
.er,ed on or a)ter the (.t day o) A-ril, '66? and and during
the course of the proceedings for the assessment or
reassessment or recomputation of total income, a re)erence
under .u1/.ection (() o) .ection >'CA (i) was made
1e)ore t*e (.t day o) 7une, '664 ut an order under .u1/
.ection (=) o) t*at .ection has not 1een 0ade 1e)ore
.uc* date@ or (ii) is 0ade on or a)ter the Bst da" of 6une,
DCC>, the pro!isions of this su-section shall, notwithstanding
an"thing contained in the second pro!iso, ha!e effect a. i) )or
t*e +ord. one year, the words t+enty/one 0ont*. had
een sustitutedE
-ec B23 (D)
. .
Sec (B= ('A) +otwithstanding an"thing contained in su-

sections (B) , (BA), (B;) and (D), in relation to the assessment
"ear commencing on the Bst da" of April, BA>B, and an"
suseGuent assessment "ear, an order of fresh assessment in
pursuance of an order under section 'B6 or section 'B9 or
section '?= or section '?9, .ettin5 a.ide or cancellin5 an
a..e..0ent, ma" e made at an" time 1e)ore t*e e8-iry o)
one year )ro0 t*e end o) t*e )inancial year in +*ic* t*e
order under section D2C or section D24 i. recei,ed 1y t*e
C*ie) Co00i..ioner or Co00i..ioner or, as the case ma"
e, the order under section D83 or section D84 is -a..ed 1y
t*e C*ie) Co00i..ioner or Co00i..ioner7
%ro!ided that where the order under section D2C or section D24 is
recei!ed " the 0hief 0ommissioner or 0ommissioner or, as the case
ma" e, the order under section D83 or section D84 is passed " the
0hief 0ommissioner or 0ommissioner, on or after the Bst da" of April,
BAAA ut efore the Bst da" of April, DCCC, such an order of fresh
assessment ma" e made at an" time up to the 3Bst da" of 9arch,
DCCD 7
!ro,ided further that +*ere t*e order under section D24 is

recei,ed " the 0hief 0ommissioner or 0ommissioner or, as
the case ma" e, the order under section D83 or section D84 is
-a..ed 1y t*e Co00i..ioner on or a)ter t*e (.t day o)
A-ril, '66B, the pro!isions of this su-section shall ha!e
effect a. i) )or t*e +ord. one year, the words nine 0ont*.
had een sustituted7
-ec B23 (DA)
. .
Sec (B= ('A) DDD
!ro,ided also that where the order under section D24 is

recei!ed " the 0hief 0ommissioner or 0ommissioner or, as
the case ma" e, the order under section D83 or section D84 is
passed " the 0ommissioner on or after the Bst da" of April,
DCC8, and during the course of the proceedings for the fresh
assessment of total income, a reference under su-section (B)
of section AD0A (i) was made efore the Bst da" of 6une, DCC>
ut an order under su-section (3) of section AD0A has not
een made efore such date@ or (ii) is made on or after the Bst
da" of 6une, DCC>, the pro!isions of this su-section shall,
notwithstanding an"thing contained in the second pro!iso,
ha!e effect as if for the words one "ear, the words twent"-one
months had een sustitutedE
-ec B23 (DA)
. .
Sec (B= (=) $he pro!isions of su-sections (() , ((A), (($) and
(') .*all not a--ly to the following classes of assessments,
reassessments and recomputations which ma", su#ect to the
pro!isions of su-section (DA), e completed at an" time
B
(ii) where the assessment, reassessment or recomputation is

made on the assessee or an" person in conseGuence of or to
gi!e effect to an" finding or direction contained in an order
under section D2C, D24, D8C, D8D, D83, or D84 or in an order
of an" court in a proceeding otherwise than " wa" of appeal
or reference under this Act @
(iii) where, in t*e ca.e o) a )ir0, an a..e..0ent i. 0ade on

a -artner of the firm in conseGuence of an assessment
made on the firm under section B4>E
-ec B23 (3)
. .
E8-lanation (3 In co0-utin5 t*e -eriod o) li0itation )or t*e

-ur-o.e. o) t*i. .ection D3 fo--owin4 .*all 1e e8cluded
(i) the ti0e ta@en in reo-enin5 t*e +*ole or any -art o) t*e
-roceedin5 or in gi!ing an opportunit" to the assessee to e re-
heard under the pro!iso to .ection ('>, or
(ii) the -eriod during which the assessment proceeding is .tayed 1y an

order or inQunction o) any court, or
(iia) the -eriod co00encin5 )ro0 t*e date on +*ic* t*e

A..e..in5 O))icer inti0ate. t*e Central o,ern0ent or t*e
-re.cri1ed aut*ority, the contra!ention of the pro!isions of clause (DB) or
clause (DD;) or clause (D3A) or clause (D3;) or su-clause (i!) or su-clause (!)
or su-clause (!i) or su-clause (!ia) of clause (D30) of section BC, under
clau.e (i) o) t*e -ro,i.o to .u1/.ection (=) o) .ection (9= and
endin5 +it* t*e date on +*ic* t*e co-y o) t*e order
+it*dra+in5 t*e a--ro,al or re.cindin5 t*e noti)ication, a.
t*e ca.e 0ay 1e, under t*o.e clau.e. i. recei,ed " the
Assessing &fficer@
(iii) the -eriod commencing from the date on which the Assessing
&fficer directs the assessee to get his account. audited under .u1/
.ection ('A) o) .ection (9' and endin5 +it* t*e la.t date on
+*ic* t*e a..e..ee i. reKuired to )urni.* a re-ort of such audit
under that su-section, or
(i!)
-ec B23
. .

(i!a) the period (not exceeding sixt" da"s) commencing from the date on which
the Assessing &fficer recei!ed the declaration under su-section (B) of section
B2?A and ending with the date on which the order under su-section (3) of that
section is made " him, or
(!) in a case where an a--lication 0ade 1e)ore t*e Inco0e/ta8

Settle0ent Co00i..ion under .ection '9BC is reQected " it or
is not allowed to e proceeded with " it, the period commencing
from the date on +*ic* .uc* a--lication is made and ending with
the date on +*ic* t*e order under su-section (B) of section D42D
is recei!ed " the 0ommissioner under su-section (D) of that section,
or
(!i) the period commencing from the date on which an application is

made efore the Aut*ority )or Ad,ance Rulin5. under su-section
(B) of section '9BR and ending with the date on which the order
re#ecting the application is recei!ed " the 0ommissioner under su-
section (3) of section D42(, or (!ii) the period commencing from the
date on which an application is made efore the Authorit" for Ad!ance
(ulings under su-section (B) of section D425 and ending with the
date on which the ad!ance ruling pronounced " it is recei!ed " the
0ommissioner under su-section (>) of section D42(,
E
-ec B23
. .

!ro,ided that +*ere i00ediately a)ter t*e e8clu.ion o)

t*e a)ore.aid ti0e or -eriod, the -eriod o) li0itation
referred to in su-sections (B), (BA), (B;), (D), (DA) and (4)
a,aila1le to t*e A..e..in5 O))icer )or 0a@in5 an order
o) a..e..0ent, rea..e..0ent or reco0-utation, as the
case ma" e, i. le.. t*an .i8ty day., such remaining period
.*all 1e e8tended to .i8ty day. and the aforesaid period of
limitation shall e deemed to e extended accordingl"7
!ro,ided further that where a proceeding efore the

Settle0ent Co00i..ion aates under section D42/A, the
period of limitation a!ailale under this section to the
Assessing &fficer for ma4ing an order of assessment,
reassessment or re-computation, as the case ma" e, shall,
after the exclusion of the period under su-section (4) of
section D42/A, e not less than one "ear@ and where such
period of limitation is less than one "ear, it shall e dee0ed
to *a,e 1een e8tended to one year@ and for the purposes
of determining the period of limitation under sections B4A,
B23;, B24, B22, B2?;' and D3B and for the purposes of
pa"ment of interest under section D43 or section D44 or, as the
case ma" e, section D44A, this pro!iso shall also appl"
accordingl"E
-ec B23
. .
E8-lanation '3 Where, 1y an order re)erred to in clau.e (ii)

o) .u1/.ection (=), an" inco0e i. e8cluded )ro0 t*e total
inco0e o) t*e a..e..ee for an assessment "ear, then, an
a..e..0ent o) .uc* inco0e )or anot*er a..e..0ent
year shall, for the purposes of section B2C and this section, e
dee0ed to 1e one 0ade in con.eKuence o) or to 5i,e
e))ect to any )indin5 or direction contained in t*e .aid
order3
E8-lanation =3 Where, 1y an order re)erred to in clau.e (ii)

o) .u1/.ection (=), an" inco0e i. e8cluded )ro0 t*e total
inco0e o) one -er.on and *eld to 1e t*e inco0e o)
anot*er -er.on, then, an a..e..0ent o) .uc* inco0e on
.uc* ot*er -er.on shall, for the purposes of section B2C and
this section, e dee0ed to 1e one 0ade in con.eKuence
o) or to 5i,e e))ect to any )indin5 or direction contained
in the said order, pro!ided such other person was gi!en an
opportunit" of eing heard efore the said order was passedE
-ec B23
. .
section .>3% .>0% .43% .4.% .4/% or .40
('&%'+*+, &) A-'--'9'+$
. .
|lTO 4 Yl\RS 4 TO G Yl\RS \lTlR G
Yl\RS
TTO
/ \C D
C
JC
Sunc!!cn bv
JC
Sunc!!cn bv
CTT
Sunc!!cn bv
JC
Sunc!!cn bv
JC
\nv umcun! . , , Rs ! OO OOO cr mcrc
RlO|TRlD
CONDTTTON
S
lscupcd
!nccmc
\sscsscc s
u!!urc
\sscsscd
/ ( ) u s !48 8
Nc!
usscsscd
cur!!cr
\sscsscd
/ ( ) u s !48 8
Nc!
usscsscd
cur!!cr
NO Sunc!!cn
NO Sunc!!cn NO Sunc!!cn
NO Sunc!!cn NO Sunc!!cn NO Sunc!!cn
\sscsscd
/ u s !48
( ) 8
Nc!
usscssc
d
RlO|TRlD
\nv umcun!
\
s
s
c
s
s
!
n

O
!
c
c
r
\O mus! huvc Rcuscn !c bc!!cvc !hu! !nccmc hus cscupcd usscssmcn!
\O mus! rcccrd rcuscns bccrc !ssu!n nc!!cc undcr Scc !48 Tssuc
nc!!cc undcr Scc !48 !!h!n !!mc !!m!!
lRl
RlO|TSTTlS
- TTMl
lTMTT
Time limi/ for issue of -o/ice u=s >& c.lcul./ed from /0e e-d of /0e rele3.-/ AE
Time limi/ for comple/io- of re.ssessme-/
-i-e mo-/0s from /0e e-d of FE i- 10ic0 -o/ice u-der is >& is ser3ed
Sunc!!cn bv
CTT
Sunc!!cn bv
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Sunc!!
cn bv
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Sunc!!
cn bv
JC
Sunc!!
cn bv
JC
Sunc!!
cn bv
CTT
Sunc!!
cn bv
CTT
NO
Sunc!!
cn
ONlY ON
lTNDTNG
OR
DTRlCTTON
TN
, \lll\l
Rl\TSTON
OR
CO|RT S
ORDlR
. . l Y . . \ Y . . l Y
A-'--'9'+$7 A -.99A(:
. .
TNCOMl
RlT|RN
Slll
\SSlSSMlNT
TDS
\D\\NCl T\\ ( & ) Slll \SSlSSMlNT T\\ TNTlRlST
D|l D\Tl
( ) !8O !
|p!c ! vcur
u!cr \Y
( ) / !8O 4
( ) 5
/ ( ) ( ) Nc!!cc u s !4? ! !
/ Nc!!cc u s !48
. . l Y . . l Y . . l Y . . l Y . . l Y . . l Y . . l Y
/ Nc!!cc u s!48
. . r !5O
NOTTCl TO lTll \ RlT|RN
. . l Y
. . l Y . . \ Y . . l Y
A-'--'9'+$7 A -.99A(:
. .
RlT|RN
D|l D\Tl
( ) !8O !
|p!c ! vcur
u!cr \Y
( ) / !8O 4
( ) 5
. . l Y . . l Y . . l Y . . l Y . . l Y . . l Y . . l Y
& lROClSSTNG
TNTTM\TTON
. . l Y
. . l Y . . \ Y . . l Y
A-'--'9'+$7 A -.99A(:
. .
RlT|RN
D|l D\Tl
( ) !8O !
|p!c ! vcur
u!cr \Y
( ) / !8O 4
( ) 5
\SSlSSMlNT
. . l Y . . l Y . . l Y . . l Y . . l Y . . l Y . . l Y
/ ( ) NOTTCl | S !48 ?
. . l Y
/ ( ) NOTTCl | S !4? !
/ ( ) / ORDlR | S !48 8 !44
. . l Y . . \ Y . . l Y
('A-'--'9'+$7 A -.99A(:
. .
RlT|RN
D|l D\Tl
( ) !8O !
. . l Y . . l Y . . l Y . . l Y . . l Y . . l Y . . l Y . . l Y
/ NOTTCl | S !48
Rl\SSlSSMlNT
/ ORDlR | S
( ) / !48 8
!44
for A(IT for A(IT
Ut! B years B&' years
/ ( ) NOTTCl | S !4? !
. . l Y . . \ Y . . l Y
('A-'--'9'+$7 A -.99A(:
. .
RlT|RN
D|l D\Tl
( ) !8O ! TN RlSlONSl
/ TO NOTTCl | S
!48
/ . . ORDlR | S !4 r
( ) !48 8
/ NOTTCl | S !48
Rl\SSlSSMlNT
/ ORDlR | S
( ) / !48 8
!44
for A(IT for A(IT
/ ( ) NOTTCl | S !48 ?
. . l Y
DBD
('A--'--9'+$
. .
4 0an the A& lea!e certain in!estigations for a suseGuent re-
assessment :
s oul 2 , m n p m l
ss ssm nt or m n o s rv t ons n t
ours o ss ssm nt pro n s t t som
ss ss l n om t x st n o #
s n t r no#l # ll su t to
ss ssm nt su s 3u ntl u s
8ircu-'r 1 F ;o. 4%2<1(0<%2.I dt 6.12.%%

4 0an the assessee challenge the reopening of assessment " Writ
%etition:
:esE *t can e!en though it was open for him to challenge it efore
A& 1 0*$E .8'-cutt' /iscount 8o 7td @ IE (1961) 41 I! 191
4 *s a reassessment done on the direction of the super!isor" officer
!alid :
:es, so far as the statutor" pro!isions are satisfied, iEeEE $he A& has
applied his own mind and had reasons to elie!e that income has
escaped assessment (there must e nothing on record to show that the
A& himself elie!ed otherwise) .8I @. 2bdu-
C+'der 2+#ed (2006) 1%6 '5#'n 206 (Cer)
4 0an the assessee reGuest for reassessment :
+oE -ec B4> is onl" for the enefit of the re!enue

PPPPPEE8I @. )un 9n4ineerin4 Jor?s (=) 7td (1992) 19( I! 297
()8)
4 0an the assessee ma4e new claims of deduction in reassessment:
&nl" deductions with reference to income that has escaped

assessment and is sought to e assessed in reassessment (can not
open issues alread" decided) PPPPPEE8I @. 8'i5' 9cono#ic'
de God (1994) 119 8! ("o#)
DB3
('A--'--9'+$
. .
4 0an the A& issue notice u1s B4? on the asis of suspicion :
2o t s to on t s s o r sons
to l v not susp t
IE @. 7'?+#'ni &ew'- /'s (1976) 10$ I! 4$7

()8)
4 0an the A& assess income other than that which he elie!ed to ha!e
escaped assessment at the time of reopening:
:esE &nce !alid proceedings are started u1s B4> the A& not onl"
has #urisdiction ut it is dut" to le!" tax on the entire income that has
escaped assessment during that "ear.@ A'4'n &o+'n !'o @.
8I (1970) 7% I! 7$ ()8)
4 *n the light of @ A'4'n &o+'n !'o @. 8I (1970) 7% I! 7$ ()8) should
the assessee repeat the whole exercise of assessment once again :
+oE /e should restrict assessment to underassessedincome in !iew

of the -0 #udgement .&et'-
I#3orts = 7td @. 8I (1994) 72 '5#'n $7% (8'-)
4 -hould the A& gi!e an opportunit" to the assessee of eing heard
efore issuing notice u1s B4? :
+ot reGuiredE PPPPPEE8I @.

&'+'-i!'# !'#Bid's (1940) ( I! 442 (=8)
4 *f the successi!e A& differ in opinion from his predecessor (facts eing
the same) can it e the ground for reopening case for
reassessment:
+o, not sufficientPPPPPEE8I @. "+'nBi 7'*Bi (1971) 79 I!

%(2()8)
DB4
('A--'--9'+$
. .
4 0an the A& who realises that he made a mista4e during an assessment
later reopen the case for reassessment u1s B4> :
2o nor n o l # s not n x us
or r op n n
8entur0 9n?'7td @. IE (19($) 14$ I! 629 (8'-)

4 0an the A& reopen the case u1s B4> later if a particular point of law is
clarified " -0:
+oE not if the facts ha!e remained unchanged.Indr' 8o

7td. @. IE (1971) (0 I! %%9 (8'-)
4 0an the A& reopen the case u1s B4> if he at the time of original
assessment he was not aware of a ;oard circular :
+oE ./r D D'bic+t @. &'?+iB' (19(%) %4 I! %%2 ("o#)

4 *f the A& passed the initial order without ma4ing a particular addition,
in spite of the assessee ha!ing supplied the facts, as it was getting
time arred, can he later reassess that income u1s B4> :
+oE +ot if the facts efore the A& ha!e not changed
PPPPPEEG = 24'rw'- @ 28I (1994) 20( I! 79% (2--)
4 0an the assessee claim a loss (not originall" claimed in the return) and
see4 to carr" it forward on the asis of the reassessment:
+oPPPPPEE8I @ )t'te 24ro /e*e-o3#ent 8or3 (2001) 24( 4(7

(AFC)
DB2
('A--'--9'+$
. .
4 0an the A& reassess the income in a case where the intimation u1s B43
(B) was issued without an" addition and no new facts are there : *s
it a change of opinion :
1 s t ll ot r p r3u s t s or
r ss ssm nt r s t s 5, s s not
n o op n on us ( s not
ss ssm nt6
28I @ !'Bes+ A+'weri )toc? "ro?ers = 7td (2007)

291 I! %00 ()8)
4 *f the A& accepted the returned income u1s B43 (3), can he later issue
notice u1s B4? for reassessment on the asis of material that comes
to his notice during the assessment of the next "ear :
:esE /e can.9ss 9ss C'0 9n4ineerin4 8o = 7td @ 8I

(2001) 247 I! (1( ()8)
4 0an the A& ha!e reasons to elie!e on the asis of rumours or gossip:
+oE reason to elie!e can e ased on circumstantial e!idence ut

not on asis of rumours, gossip or suspicion.)+eo ;'t+ )in4+ @
228 (1971) (2 I! 147 ()8)
4 0an the assessee e said to ha!e disclosed all facts full" when the
transaction under Guestion itself is ogus:
+oE *t cannot e said to e true disclosure

PPPPPEE=+oo- 8+'nd "'Br'n4 7'- @ IE (199$) 20$ I! 4%6 ()8)
4 0an the A& resort to reassessment, without an" new e!idence, on an
issue which was not a part of the original assessment order:
:esE *f was considered in original

assessmentPPPPPEE8onso-id'ted =+otos F Fin*est 7td @ 28I (2006)
1%1 '5#'n 41 (/e-+i)
DB8
('A--'--9'+$
. .
4 *n a case of non-filing of return, what is the earliest point of time for
issue of notice u1s B4? :
s soon s t 1 s ov r n no r turn s
l t ss ss nor n not s
ssu to m u s ( ( n om
#oul v s p ss ssm nt t m r
t t t ss ss n l r turn u s
( t o s not ollo# t t no n om
n s to v s p ss ssm nt
unt l p r o pr s r u s ( s
ov r o# v r n ss ss volunt r l
l s r turn u s ( t nnot
pro u s 5 or lur to l
r turn xpl n t on ( o 6
&otoro-' Inc. @ 8I (200%) 147 '5#'n $9

4 0an an A& reopen an assessment u1s B4> to in!estigate a matter that
was not in!estigated during the original assessment :
:esE $here * s nothing in -ec B4> to suggest that the A& cannot do
so 5 o# v r t on t ons or r ss ssm nt
n to s t s 6 .!'#
=r's'd @ IE (199%) (2 '5#'n 199 (2--)
4 *f the assessee disclosed all facts ut claimed enefit on the asis of a
wrong interpretation of law, does it amount to failure in disclosing all
facts:
+oE not till he !oluntaril" disclosed all facts rele!ant to

assessment.)i#3-e5 8oncrete =i-es 7td (2004) 1$4 '5#'n 74
(8'-)
4 Will &taining relief " an incorrect ratio of a /0 1 -0 decision amount
to failure to trul" disclose all material:
+oE PPPPPEECuberd's D'r4o*'nd's &odi @ IE (1972) ($ I!

7($ (GuB)
4
DB>
('A--'--9'+$
. .
RECORDIN OF REASONS M COMM"NICATIN T%EM TO ASSESSEE RECORDIN OF REASONS M COMM"NICATIN T%EM TO ASSESSEE
4 0an the assessee challenge the VeliefJ of the A&:
, x st n o l n
ll n t ss ss ut # t r
t s roun s ( or r sons r 3u t
or not s not m tt r or t ourt to
nv st t
) ;'r'0'n'33' @ 8I (1967) 6$ I! 219 ()8)
While #udging the !alidit" of notice u1s B4? the court has to
restrict itself to the record 'di?ond' !'#u-u @ IE
(1990) (6 I! 14( (2=)
$he court is reGuired to examine whether some material existed

on record , utPsufficienc" of grounds are not
#usticiale Hnited 9-ectric 8o = 7td @ 8I (2002) 2%(
I! $17 (/e-)
$he assessee cannot challenge sufficienc" of

elief IE @ 7'?+#'ni &ew'- /'d (1976) 10$ I! 4$7
()8)
Whether there is prima facie material on record P $he sufficienc"

or correctness is not a thing to e considered at this
stage !'0#ond Joo--en &i--s @ IE (1999) 2$6 I! $4
()8)
4 *s there a limit on the numer of times a reassessment can e done :
+o, there is no limit E A& has power to do an" numer of

reassessmentsE .8I @. ))!G 2rt+'n'risw'#0
(19(2) 1$6 I! 147 (&'d)
4 0an a second notice u1s B4? e issued when a reassessment is pending
completion:
+oE .2))= F 8o @ 8I (19(() 172 I! 274 (&'d)

DB?
('A--'--9'+$
. .
4 When can a court ta4e the !iew that A& had no reasons:
n v r ss ss ll n s t
v l t o not u s t ourt
s oul ll or t r or s
t r r no r sons on r or t not
s n l #
8o##unid'do of 8+ic'-in@ IE (2000) ()8)

4 0an the assessee as4 for suppl" of reasons :
:esE /e canE A& and assessee should follow the following

procedure7
*n response to the notice u1s B4?, the assess can either file a fresh return
of income &( reGuest that his return filed u1s B3A ma" e treated as his
return filed in response to notice u1sB4?E
-imultaneousl" with filing of return, assessee should reGuest A& to

pro!ide the reasons for reopening assessmentE
$hen assessee ma" file his o#ections against reopening of assessment,

and the A& 9.-$ dispose his o#ections " wa" of a spea4ing order,
and if A& re#ects it, he should not proceed with reassessment till four
wee4s ..(D/F8 @ 8I (2007) 16% '5#'n ( ("o#)
*f A& does not dispose his o#ections and goes ahead with assessment,
assessee should file u1s B44A with the 60*$, and if his application is
re#ected " 60*$, he should file a Writ petitionE
.GC; /ri*e )+'fts Indi' 7td @ IE (200$) 2%9

I! 19 ()8)
DBA
('A--'--9'+$
. .
4 Whether sanction gi!en " 0*$ in a case falling u1s B2B (D) is !alid :
2o r J s mpo# r to v
s n t on s n t on , #oul nv l
! = Gu3t' F )ons(DHF) @ IE (2006) 1%7 '5#'n

1%( (/e-)
4 What will happen if the notice u1s B4? is in!alid :
$he entire reassessment proceedings will e

in!alid.8I @ Curb'n Duss'in Ibr'+i#Bi &it+iborw'-' (1971)
(2 I! (21 ()8)
4 What happens if the there are two entities " the same name and
address and it is not clear as to which one of them is addressed :
$he notice would e in!alid .IE @ 8+'ndi =r's'd &odi

( 1979) 119 I! $40 (8'-)
4 What happens if the notice is returned " postal department with
noting that addressee refused to accept it:
*t is presumpti!e proof of ser!ice PPPPPEE8I @

D'ri =r's'd (19(9) 17( I! %91 (=FD)
4 *s the 0*$ (or 60*$) reGuired to gi!e the assessee an opportunit" of
eing heard:
:es PPPPPEEC'#'-' =ro3erties @ I28 1994 '5 7! 46(

(8'-)KKKKKKKKKKKKKKKKKKKK
DDC
('- 6.D*0A$A
. .
4 Does the concept of V(es 6udicataJ appl" in case of assessments:
2o n 1 s s l ont n
ss ssm nt p r o n s on n on 1
o s not or n r l op r t s r s
u t n r sp t o m tt r
n n su s 3u nt r or t s not
ourt n s not pr lu rom
rr v n t on lus on n ons st nt # t
s on lus on n not r r
At f'#i-0 of Hd'0'n 8+inub+'i @ 8I (1967) 6$ I!

416 ()8) , /w'r?'d's Ces'rdeo &ur'r?' @ 8I (1962) 44 I! %29 ()8)
, ou t pr n pl s o r s
u t o not ppl to n om t x
pro n s # n 3u st on o l # or
t # s n t ss ss s o#n s
or n rl r ss ssm nt r n n
nt l 3u st on om s up ons r t on
or l t r r ,r un l # ll
ust n pl n r l n on t
rl r s on
8I @ @e-i#'-'i !ubber 8E 7td (1990) 4( '5#'n

$6%6 (Cer)
*n matter relating to properties and rights ( which do not !ar"

from "ear to "ear) res #udicata will appl"E .8I @ = Cris+n'
J'rrior (1994) 20( I! (2$ (Cer)
$hough res #udicata does not appl" PPPPE#udicial propriet"

reGuires consistenc"8I @ ;'tion'- "e'rin4 8o -td (1994) 20(
I! (72 (!'B)
DDB
'-$&%%'L
. .
4 Does the concept of V'-$&%%'LJ appl" in case of assessments:
2o r t pr t opt
t ss ss n pt t , x
ut or t s n rl r rs r oun to
str tl not n or n # t l #
t n t t x ut or t s r oun to
t t v # # s n or n # t
l # n t r not stopp t r
on u t rom ns st n on r nt
pr t ons st nt # t l #
8I @ +'ntirust (19(2) 1$7 I! 7$% (&'d)
!ecti+ication o+ -ista>e !ecti+ication o+ -ista>e
Sec (B93 (() With a !iew to recti)yin5 any 0i.ta@e

a--arent )ro0 t*e record an income-tax authorit" referred
to in section BB8 ma",
(a) a0end any order passed " it under the pro!isions

of this Act @
(1) a0end any inti0ation or dee0ed inti0ation

under su-section (B) of section B43E
((A) F*ere any 0atter *a. 1een con.idered and decided

in an" proceeding " wa" of a--eal or re,i.ion relating to
an order referred to in su-section (B), the authorit" passing
such order ma", notwithstanding an"thing contained in an"
law for the time eing in force, a0end the order under that
su-section in relation to any 0atter ot*er t*an t*e
0atter +*ic* *a. 1een .o con.idered and decidedE
(') -u#ect to the other pro!isions of this section, the authorit"

concerned
(a) ma" ma4e an amendment under su-section (B) o)

it. o+n 0otion, and
(1) shall ma4e such amendment for rectif"ing an" such

mista4e which has een 1rou5*t to it. notice 1y the
a..e..ee, and where the authorit" concerned is the
0ommissioner (Appeals), " the A..e..in5 O))icer al.oE
('0$*)*0A$*&+
. .
Sec (B93 DD
(=) An amendment, which has the effect of enhancing an

assessment or reducing a refund or otherwise increasing the
liailit" of the assessee, shall not e made under this section
unless the authorit" concerned has gi!en notice to t*e
a..e..ee o) it. intention so to do and has allo+ed t*e
a..e..ee a rea.ona1le o--ortunity o) 1ein5 *eardE
(9) Where an amendment is made under this section, an order

shall e passed in +ritin5 " the income-tax authorit"
concernedE
(B) -u#ect to the pro!isions of section D4B, where an" such

amendment has the effect of reducing the assessment, the
Assessing &fficer shall 0a@e any re)und which ma" e due
to such assesseeE
(?) Where an" such amendment has the effect of en*ancin5

t*e a..e..0ent or reducin5 a re)und already 0ade, the
Assessing &fficer shall ser!e on the assessee a notice o)
de0and in the -re.cri1ed )or0 specif"ing the sum
pa"ale, and such notice of demand shall e deemed to e
issued under section B28 and the pro!isions of this Act shall
appl" accordingl"E
('0$*)*0A$*&+
. .
-ec B24E PP
(>) -a!e as otherwise pro!ided in section B22 or su-section (4)

of section B?8 no a0end0ent under t*i. .ection .*all 1e
0ade a)ter t*e e8-iry o) )our year. )ro0 t*e end o) t*e
)inancial year in +*ic* t*e order sought to e amended
+a. -a..edE
(?) Without pre#udice to the pro!isions of su-section (>), where

an application for amendment under this section is made "
the assessee on or after the Bst da" of 6une, DCCB to an
income-tax authorit" referred to in su-section (B), the
authorit" .*all -a.. an order, +it*in a -eriod o) .i8
0ont*. )ro0 t*e end o) t*e 0ont* in +*ic* t*e
a--lication i. recei,ed " it, (a) ma4ing the amendment@
or () refusing to allow the claimE
('0$*)*0A$*&+
. .
Thc uu!hcr!!!cs m uk!n rcc!!!cu!!cn urc uu!hcr!scd bv hc l curd !c
d!spcsc c un upp!!cu!!cn cvcn u!cr !hc cxp!rv c !!m c !!m !! ! u vu!!d
upp!!cu!!cn hus bccn !!cd bv !hc usscsscc !!h!n !hc s!u!u!crv !!m !!
bu! us nc! d!spcscd c bv !hc ccnccrncd uu!hcr!!v !!h!n !hc
. ucrcsu!d !!m c !!m !!
.0ircu)ar ?! E9 dated E.1.1HE2
DD2
('0$*)*0A$*&+
. .
4 0an order u1s B24 e made in a case where the A& wants to change his
decision on a deatale issue :
2o m st pp r nt rom r or
must n o v ous n p t nt m st n
not som t n # n st l s
# o lon r #n r son n )
"'-'r'# @ IE (1971) (2 I! %0 ()8)
4 *f the A& made a mista4e in law, can it e corrected u1s B24:
:esE *f a mista4e of facts can e corrected there is no reason wh" a

0i.ta@e o) la+ +*ic* i. 5larin5 and o1,iou. cannot e corrected
u1s B24 . IE @ "o#b'0 /0ein4 F &f4 8o 7td.
(19%() $4 14$ ()8)
4 0an an A& in!estigate a matter that he did not during the assessment
u1s B24 :
+oE PA point that was not examined on fact or in law cannot e dealt
as a mista4e apparent on the record
.8I @ Dero 80c-es = 7td (1997) 94 '5#'n 271 I! 46$ ()8)
4 *s issuing a notice for -ec B24 mandator" in all cases of rectification:
+oE PPonl" where the assessment is enhanced or refund is

reduced PPPEE&'+'r'n' &i--s = 7td IE (19%9) $6 I! $%0 ()8)
4 *s it mandator" for the A& to respond to a reGuest for rectification:
:esE PPthe power to rectif" the order is conferred upon him is to

ensure that in#ustice to the assessee or the re!enue is a!oidedPEto do
#ustice it shall e exercised PPPEE7 Dird'0 ;'r'in @ IE (1970) 7( I!
26 ()8)
4
DD8
('0$*)*0A$*&+
. .
4 0an the A& loo4 at the record of earlier "ears for ma4ing an order u1s
B24:
1 s , r or or t purpos o s
( s t r or v l l to t
ut or t s t t n t t on o
pro n s or r t t on n not
m r l t r or o t or n l
pro n s sou t to r t
8I @ & ! & =-'nt'tion = 7td (1999) 240 I! 660
(&'d)
It c'nnot s'id to be record of one 3'rticu-'r 0e'r but t+e entire

record of t+e 'sessee re-'tin4 to '-- 2Ys H3's'n' Dos3
F ;ursin4 Do#e @ 8I (2002) 2%$ I! %07 (Cer)
4 0an the A& rectif" an order passed u1s B24 :
:es PEE V&rderJ includes amended rectified order also

. Dind Jire Industries 7td @ 8I (199%) 212 I! 6$9 ()8)
4 *n a case of reassessment, which order will e rectified H original
assessment or reassessment:
(eassessment order .8I @

&0sore Iron F )tee- (19(6) 1%7 I! %$1 (C'r)
4 0an an ad#ustment that can not e done u1s B43 (B) e done u1s B24:
+o PEwhate!er can not e done u1s B43 (B) (a) can also not e
done u1s B24 read with sec B43 (B) (a)
PPPEE8I @ )ei#ens 2G (2004) 90 I/ 117 (&u#)
DD>
('0$*)*0A$*&+
. .
4 What is meant " Vmista4eJ:
*t has to e an o!ious mista4e
*t has to e o!ious from record
*t ma" e a mista4e of facts or of law
'xamples of mista4e include 7 (i) error of law@ (i) error of fact@ (iii)
clerical or arithmetical error@ (i!) error in determining written down
!alue@ (!) o!erloo4ing the oligator" pro!isions of the legislature@ (!i)
mista4es arising as a result of suseGuent retrospecti!e amendment of
law
PPPEE)out+ern Industri'- 8or3n 7td @ 8I (2002) 2%( I! 4(1

(&'d)
fresh determination of facts should not e in!ol!ed
PPPEEEi- Indi' 7td @ 8I (1990) 1($ I! 412 (8'-)
4 0an an assessee claim deductions u1s B24:
&nl" with reference to that income which is added " wa" of

rectificationPPPEE2ssoci'ted Dote-s 7td @ 8I (200%) 2 )E 9$ (&u#)
4
DD?
('0$*)*0A$*&+
. .
4 0an the A& do a rectification on the ehest of his superior officers:
2o r t t on s on t
not # n t t t
r t t on # s propos s p r
omm ss on rs nstru t ons #oul
nv l !'B3ut'n' &inin4 24encies
@ IE (1979) 11( I! %(% (!'B)
4 *f an A& has made a rectification, can his successor cancel it :
+oPE A successor cannot sit in appeal o!er the order of his

predecessor . IE @ "o#b'0 /0ein4 F &f4 8o
7td. (19%() $4 14$ ()8)
4 0an the notice for rectification of intimation e issued after issuing a
notice u1s B43(D):
+oE P .7'?+'n3'- ;'tion'- 7td

@ /8I (1997) 90 '5#'n $9% (&=)
4 What is meant " VrecordJ:
V (ecordJ referred to it sec B24 does not mean onl" the order of
assessment ut it comprises all proceedings on which the assessment
order is ased and the *$& is entitled for the purpose of exercising his
#urisdiction u1s B24 to loo4 into the whole e!idence and the law
applicale to ascertain whether there was an error
PPPEE&'+'r'n' &i--s = 7td IE (19%9) $6 I! $%0 ()8)
$hings which accompan" return are also part of record

PPPEE2nn'#'-is 24encies @ 8I (200$) 260 I! 47( (&'d)
4
;otice of de#'nd ;otice of de#'nd
Sec (B?3 When any ta8, intere.t, -enalty, )ine or any

ot*er .u0 i. -aya1le in con.eKuence o) any order
passed under this Act, the A..e..in5 O))icer .*all .er,e
u-on t*e a..e..ee a notice o) de0and in the -re.cri1ed
)or0

specif"ing the sum so pa"ale7
!ro,ided t+'t w+ere 'n0 su# is deter#ined to be 3'0'b-e b0

t+e 'ssessee under sub.section 7%8 o+ section %5&, t+e
inti-ation under t+'t sub.section s+'-- be dee-ed to be a
notice o+ de-and for t+e 3ur3oses of t+is section.
D'9A+D
. .
D3C
D'9A+D
. .
4 0an the notice u1s B28 e issued in an" format :
2o t must n orm pr s r
t -ul s IE @ )e4+u
"uc+'i'+ )ett0 (1994) %2 I! %$( ()8)
4 After the appellate order is it necessar" to issue a fresh order:
:esE Pthe appellate 1 re!isional order Pthat will hold the field
under the Doctrine of mergerE $herefore it is the dut" of the A& to issue
a fresh notice of demand . IE @ )e4+u "uc+'i'+
)ett0 (1994) %2 I! %$( ()8)
4 When the notice u1s B28 is issued is the A& reGuired to compute tax in
the assessment order also:
+oE Put t*e order to c*ar5e intere.t 0u.t 1e clear +it*

re)erence to t*e -articular .ection.3
-ec B28 ma4es it clear that notice of demand claiming interest

can e issued onl" when there is an order in the assessment order
le!"ing VinterestJE $o use the expression Vcharge interest, if an"J or
Vcharge interest as per rulesJ or Vcharge interest under all aforesaid
sectionsJ cannot e read to mean that the A& has passed ordersE $he
order to charge interest has to e specific and clearPE*t is a different
thing when there is an order le!"ing interest ut it left the calculation
to the officeE $he assessee must e made to 4now that the A& after
appl"ing his mind has ordered the charging of interest and under which
of the sec of the AcE When the assessment order is silent if an" interest
is le!iale, notice of demand cannot go e"ond the assessment order
and the assessee cannot e ser!ed an" such notice demanding
interestE -uch a notice is to e GuashedE Hd'0 &'st'n'
"+'nd'r F 8o#3-e5 @ (1996) 222 I! 44 (='t).2ffir#ed b0 )8
Inti-ation o+ loss Inti-ation o+ loss
Sec (B4E When, in t*e cour.e o) t*e a..e..0ent of the total

income of an" assessee, it is e.ta1li.*ed t*at a lo.. *a.
ta@en -lace +*ic* t*e a..e..ee i. entitled to *a,e
carried )or+ard and .et o)) under the pro!isions of su-
section (B) of section >D, su-section (D) of section >3, su-
section (B) or su-section (3) of section >4 or su-section (3)
of section >4A, the A..e..in5 O))icer .*all noti)y to t*e
a..e..ee 1y an order in +ritin5 t*e a0ount o) t*e lo..
as computed " him for the purposes of su-section (B) of
section >D, su-section (D) of section >3, su-section (B) or
su-section (3) of section >4 or su-section (3) of section >4AE
-ec B2>
. .
Inti-ation o+ assess-ent o+ +ir- Inti-ation o+ assess-ent o+ +ir-
Sec (BA3 Whene!er, in respect of the a..e..0ent year

co00encin5 on t*e (.t day o) A-ril, (>>', or any
earlier a..e..0ent year, a registered firm is assessed, or
an unregistered firm is assessed under the pro!isions of
clause () of section B?3, the Assessing &fficer shall notif" to
the firm " an order in writing the amount of its total income
assessed and the apportionment thereof etween the se!eral
partnersE
-ec B2?
. .
Sec (B4E ((A) Where in re.-ect o) any co0-leted

a..e..0ent o) a )ir0 it is found
(a) on t*e a..e..0ent or rea..e..0ent o) t*e )ir0, or
() on an" reduction or enhancement made in the inco0e

o) t*e )ir0 under t*i. .ection, section (B9, section 'B6,
section 'B9, section '?6, section '?', section '?= or
section '?9, or
(c)on any order -a..ed under .u1/.ection (9) o) .ection
'9BD on the application made " the firm,
that any re0uneration to any -artner i. not

deducti1le under clau.e (1) o) .ection 96, the
A..e..in5 O))icer 0ay a0end t*e order o) a..e..0ent
o) t*e -artner with a !iew to adQu.tin5 t*e inco0e o)
t*e -artner to the extent of the amount not so deductile @
and the pro!isions of section (B9 shall, so far as ma" e,
appl" thereto, the -eriod o) )our year. .-eci)ied in su-
section (>) of that section eing rec@oned )ro0 t*e end o)
t*e )inancial year in +*ic* t*e )inal order +a. -a..ed
in t*e ca.e o) t*e )ir0E
-ec B22 (BA)
. .
Sec (B43 (') Where in respect of an" co0-leted a..e..0ent

o) a 0e01er o) an a..ociation o) -er.on. or o) a 1ody
o) indi,idual. it is found
(a) on the a..e..0ent or rea..e..0ent o) t*e

a..ociation or 1ody, or
(1) on an" reduction or enhancement made in the inco0e

o) t*e a..ociation or 1ody under t*i. .ection, section
(B9, section 'B6, section 'B9, section '?6, section '?',
section '?= or section '?9, or
(c) on an" order passed under su-section (9) o) .ection '9BD

on the application made " the association or od",
that the .*are o) t*e 0e01er in t*e inco0e o) t*e

a..ociation or 1ody, a. t*e ca.e 0ay 1e, *a. not 1een
included in t*e a..e..0ent o) t*e 0e01er or, if
included, is not correct, the A..e..in5 O))icer 0ay
a0end t*e order o) a..e..0ent o) t*e 0e01er with a
!iew to the inclusion of the share in the assessment or the
correction thereof, as the case ma" e @ and the pro!isions of
section (B9 .*all, so far as ma" e, a--ly thereto, the
period of )our year. specified in su-section (>) of that
section eing rec@oned )ro0 t*e end o) t*e )inancial
year in +*ic* t*e )inal order +a. -a..ed in t*e ca.e o)
t*e a..ociation or 1ody, as the case ma" eE
-ec B22 (D)
. .

Assessement Procedure in Indian Income Tax

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Assessement Procedure in Indian Income Tax

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by

Dr Vinay Kumar Singh

*+$'(%('$A$*&+ &) -$A$.$'

%(*+0*%L'- &) +A$.(AL

L*9*$A$*&+ &) $*9'

L*9*$A$*&+ &) *+$'(%('$A$*&+

Sec '( o) INDIAN !ENAL CODE

Sec3 ' (4A) A..e..in5 O))icer means

and the Additional 0ommissioner or

Sec3 ('6 7uri.diction o) inco0e/ta8 aut*oritie.

(() *ncome-tax authorities shall exercise all or an" of the

Explanation. )or the remo!al of douts, it is here"

(') $he directions of the ;oard under su-section (B) ma"

Sec3 ('6 7uri.diction o) inco0e/ta8 aut*oritie.

9) Without pre#udice to the pro!isions of su-sections (B) and (D), the

(a) authorise an" Director ,eneral or Director to perform such

(b) empower the Director ,eneral or 0hief 0ommissioner or

T*e Additional CIT +a. not t*e

Sec3 '('BA) India means the territor" of

cu!cr cdc c !hc ccn!!ncn!u!

%"F %"F H not defined in *E$E Act, reference in /indu Law

-includes 6ainsPPENBA34OD *$( 483

-co!ers oth Da"aagh & 9ita4sharaschool NBA>4O A> *$( 4A3

-reGuires presence of male memerPPPNDCCBO D4? *$( DCB(-0)

Nu!uru! humun bc!n . [ ] |dhum S!nh vs CTT !O88

Sec3 '((4 Sec3 '((4) ) compan" means compan" means

(i) an" (i) an" Indian co0-any Indian co0-any, or , or

Sec3 '('?) Indian co0-any 0ean. a co0-any )or0ed and

(ia) a cor-oration e.ta1li.*ed 1y or under a Central, State or !ro,incial Act 2

(i1) any in.titution, a..ociation or 1ody +*ic* i. declared 1y t*e $oard to 1e

Co0-anie. Act, (>B? Co0-anie. Act, (>B?

Sec =3 De)inition. o) co0-any, e8i.tin5 co0-any, !ri,ate

(() *n this Act, unless the context otherwise reGuires, the

(i) Qco0-anyQ means a compan" formed and registered under

(ii) Qe8i.tin5 co0-anyQ means a compan" formed and

(a) an" Act or Acts relating to companies in force efore the

() the *ndian 0ompanies Act, B?88 (BCC8 BA88)@

(c) the *ndian 0ompanies Act, B??D ( 8 of B??D)@

(d) the *ndian 0ompanies Act, BAB3 (> of BAB3)@

(e) the (egistration of $ransferred 0ompanies &rdinance, BA4D

(f) an" law corresponding to an" of the Act or the &rdinance

Co0-anie. Act, (>B? Co0-anie. Act, (>B?

Sec =3 De)inition. o) co0-any, e8i.tin5 co0-any, !ri,ate co0-any and

.subsection (1) Dcontd.

(iii) Q-ri,ate co0-anyQ means a compan" which, " its articles,

(a) restricts the right to transfer its shares, if an"@

() limits the numer of its memers to fift" not including

(i) persons who are in the emplo"ment of the compan",

(ii) persons who ha!ing een formerl" in the

(c) prohiits an" in!itation to the pulic to suscrie for

%ro!ided that where two or more persons hold one or more

(i!) Q-u1lic co0-anyQ means a compan" which is not a pri!ate

Co0-anie. Act, (>B? Co0-anie. Act, (>B?

Section ('3 MODE OF FORMIN INCOR!ORATED COM!ANY

(B) An" se!en or more persons, or where the compan" to e

(D) -uch a compan" ma" e either R

(a) a compan" ha!ing the liailit" of its memers limited

() a compan" ha!ing the liailit" of its memers limited

(c) a compan" not ha!ing an" limit on the liailit" of its

I3T3Act, (>?( I3T3Act, (>?(

Section ' (''A) do0e.tic co0-any means an *ndian

Section BA4E $he principal officer of an *ndian compan" or a compan"

. . T T Ru!c ? . . T T Ru!c ? lrcscr!bcd urruncmcn!s cr dcc!uru!!cn und

I3T3Act, (>?( I3T3Act, (>?(

+$'(%('$A$&+ &) -$A$.$'

%(+0%L'- &) +A$.(AL

L9$A$&+ &) $9'

L9$A$&+ &) +$'(%('$A$*&+

Te Additional CIT +a. not te

(i1) any in.titution, a..ociation or 1ody +ic i. declared 1y t*e $oard to 1e

Section((A) co0-any in +ic t*e -u1lic are .u1.tantially

Section((A) co0-any in +ic t*e -u1lic are .u1.tantially

E8-lanation3 n its application to an ndian compan" whose usiness consists mainl"

(iii) -artner.i- -artner.i- shall ha!e the

Sec A6$ In ti. ca-ter /

of of +0&9' $A< +0&9' $A<