(1)[Where, in respect of any completed assessment of a partner in a firm for the assessment year commencing on the 1st day of April, 1992, or any earlier assessment year,] [ Substituted by Act 18 of 1992, Section 62, for " Where, in respect of any completed assessment of a partner in a firm" (w.e.f. 1.4.1993).] it is found-(a)on the assessment or reassessment of the firm, or(b)on any reduction or enhancement made in the income of the firm under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, or(c)[ on any order passed under sub-section (4) of section 245-D on the application made by the firm,] [ Inserted by Act 67 of 1984, Section 30 (w.e.f. 1.10.1984).] that the share of the partner in the income of the firm has not been included in the assessment of the partner or, if included, is not correct, the Assessing Officer may amend the order of assessment of the partner with a view to the inclusion of the share in the assessment or the correction thereof, as the case may be; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned [from the end of the financial year in which the final order was passed] [ Substituted by Act 67 of 1984, Section 30, for " from the date of final order passed" (w.e.f. 1.10.1984).] in the case of the firm.[(1-A) Where in respect of any completed assessment of a firm it is found-(a)on the assessment or reassessment of the firm, or(b)on any reduction or enhancement made in the income of the firm under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, or(c)on any order passed under sub-section (4) of section 245-D on the application made by the firm, that any remuneration to any partner is not deductible under clause (b) of section 40, the Assessing Officer may amend the order of assessment of the partner with a view to adjusting the income of the partner to the extent of the amount not so deductible; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the firm.](2)Where in respect of any completed assessment of a member of an association of persons or of a body of individuals it is found-(a)on the assessment or reassessment of the association or body, or(b)on any reduction or enhancement made in the income of the association or body under this section, section 154, section 250, section 254, section 260, section 262, section 263 or section 264, [or] [ Inserted by Act 67 of 1984, Section 30 (w.e.f. 1.10.1984).](c)[ on any order passed under sub-section (4) of section 245-D on the application made by the association or body,] [Inserted by Act 67 of 1984, Section 30 (w.e.f. 1.10.1984).]that the share of the member in the income of the association or body, as the case may be, has not been included in the assessment of the member or, if included, is not correct, the Assessing Officer may amend the order of assessment of the member with a view to the inclusion of the share in the assessment or the correction thereof, as the case may be; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the final order was passed in the case of the association or body, as the case may be.[* * *] [ Sub-Section (3) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1989).](4)Where as a result of proceedings initiated under section 147, a loss or depreciation has been recomputed and in consequence thereof it is necessary to recompute the total income of the assessee for the succeeding year or years to which the loss or depreciation allowance has been carried forward and set off under the provisions of sub-section (1) of section 72, or sub-section (2) of section 73, [or sub-section (1) or sub-section (3) of section 74,] [ Substituted by Act 11 of 1987, Section 74, for " sub-section (1) of section 74" (w.e.f. 1.4.1988).] [or sub-section (3) of section 74-A,] [ Inserted by Act 20 of 1974, Section 13 (w.e.f. 1.4.1975).] the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] may proceed to recompute the total income in respect of such year or years and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned [from the end of the financial year in which the order was passed] [ Substituted by Act 67 of 1984, Section 30, for " from the date of the final order passed" (w.e.f. 1.10.1984).] under section 147.[(4-A) Where an allowance by way of investment allowance has been made wholly or partly to an assessee in respect of a ship or an aircraft or any machinery or plant in any assessment year under section 32-A and subsequently-(a)at any time before the expiry of eight years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the ship, aircraft, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (6) or sub-section (7) of section 32-A; or(b)at any time before the expiry of ten years from the end of the previous year in which the ship or aircraft was acquired or the machinery or plant was installed, the assessee does not utilise the amount credited to the reserve account under sub-section (4) of section 32-A for the purposes of acquiring a new ship or a new aircraft or new machinery or plant (other than machinery or plant of the nature referred to in clauses (a), (b) and (d) of ] [the second proviso] [ Substituted by Act 3 of 1989, Section 25, for " the proviso" (w.e.f. 1.4.1989).][to sub-section (1) of section 32-A) for the purposes of the business of the undertaking; or [Inserted by Act 66 of 1976, Section 21 (w.r.e.f. 1.4.1976).](c)at any time before the expiry of ten years referred to in clause (b), the assessee utilises the amount credited to the reserve account under sub-section (4) of section 32-A-(i)for distribution by way of dividends or profits; or(i)in a case referred to in clause (a), from the end of the previous year in which the sale or other transfer took place;(ii)in a case referred to in clause (b), from the end of the ten years referred to in that clause;(iii)in a case referred to in clause (c), from the end of the previous year in which the amount was utilised.(ii)for remittance outside India as profits or for the creation of any asset outside India; or(iii)for any other purpose which is not a purpose of the business of the undertaking, the investment allowance originally allowed shall be deemed to have been wrongly allowed, and the ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned,- [Inserted by Act 66 of 1976, Section 21 (w.r.e.f. 1.4.1976).]Explanation. - For the purposes of clause (b), "new ship" or "new aircraft" or "new machinery or plant" shall have the same meanings as in the ][Explanation below sub-section (2) of section 32-A] [ Substituted by Act 46 of 1986, Section 32, for " Explanation to clause (1) of section 32" (w.e.f. 1.4.1988).].](5)Where an allowance by way of development rebate has been made wholly or partly to an assessee in respect of a ship, machinery or plant installed after the 31st day of December, 1957, in any assessment year under section 33 or under the corresponding provisions of the Indian Income-tax Act, 1922 (11 of 1922), and subsequently-(i)at any time before the expiry of eight years from the end of the previous year in which the ship was acquired or the machinery or plant was installed, the ship, machinery or plant is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (3) or sub-section (4) of section 33; or(ii)at any time before the expiry of the eight years referred to in sub-section (3) of section 34, the assessee utilises the amount credited to the reserve account under clause (a) of that sub-section-(a)for distribution by way of dividends or profits; or(b)for remittance outside India as profits or for the creation of any asset outside India; or(c)for any other purpose which is not a purpose of the business of the undertaking, the development rebate originally allowed shall be deemed to have been wrongly allowed, and the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the sale or transfer took place or the money was so utilised.[(5-A) Where an allowance by way of development allowance has been made wholly or partly to an assessee in respect of the cost of planting in any area in any assessment year under section 33-A and subsequently-(i)at any time before the expiry of the eight years from the end of the previous year in which such allowance was made, the land is sold or otherwise transferred by the assessee to any person other than the Government, a local authority, a corporation established by a Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or in connection with any amalgamation or succession referred to in sub-section (5) or sub-section (6) of section 33-A; or(ii)at any time before the expiry of the eight years referred to in sub-section (3) of section 33-A, the assessee utilises the amount credited to the reserve account under clause (ii) of that sub-section-(a)for distribution by way of dividends or profits; or(b)for remittance outside India as profits or for the creation of any asset outside India; or(c)for any other purpose which is not a purpose of the business of the undertaking, the development allowance originally allowed shall be deemed to have been wrongly allowed, and the ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the sale or transfer took place or the money was so utilised.] [ Inserted by Act 10 of 1965, Section 39 (w.r.e.f. 1.4.1965).][Explanation. - For the purposes of this sub-section, where an assessee having any leasehold or other right of occupancy in any land transfers such right, he shall be deemed to have sold or otherwise transferred such land.] [ Inserted by Act 25 of 1975, Section 24 (w.r.e.f. 1.4.1975).][(5-B) Where any deduction in respect of any expenditure on scientific research has been made in any assessment year under sub-section (2-B) of section 35 and the assessee fails to furnish a certificate of completion of the programme obtained from the prescribed authority within one year of the period allowed for its completion by such authority, the deduction originally made in excess of the expenditure actually incurred shall be deemed to have been wrongly made, and the ] [ Restored by Act 3 of 1989, Section 95 (w.e.f. 1.4.1989).][Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the period allowed for the completion of the programme by the prescribed authority expired.] [ Restored by Act 3 of 1989, Section 95 (w.e.f. 1.4.1989).][ Inserted by Act 10 of 1965, Section 39 (w.r.e.f. 1.4.1965).][* * *] [ Sub-Section (6) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).](7)Where, as a result of any proceeding under this Act, in the assessment for any year of a company in whose case an order under section 104 has been made for that year, it is necessary to recompute the distributable income of that company, the [Assessing Officer] [ Restored by Act 3 of 1989, Section 95 (w.e.f. 1.4.1989).] may proceed to recompute the distributable income and determine [the tax] [ Substituted by Act 10 of 1965, Section 39, for " the super-tax" (w.r.e.f. 1.4.1965).] payable on the basis of such recomputation and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned [from the end of the financial year in which the final order was passed] [ Substituted by Act 67 of 1984, Section 30, for " from the date of the final order passed" (w.e.f. 1.10.1984).] in the case of the company in respect of that proceeding.[* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][(7-B) Where, in the assessment for any year, the capital gain arising from the transfer of a capital asset is not charged under section 45 by virtue of the provisions of clause (iv) or, as the case may be, clause (v) of section 47, but is deemed under section 47-A to be income chargeable under the head "Capital gains" of the previous year in which the transfer took place by reason of-(i)such capital asset being converted by the transferee company into, or being treated by it, as stock-in-trade of its business; or(ii)the parent company or its nominees or, as the case may be, the holding company ceasing to hold the whole of the share capital of the subsidiary company, at any time before the expiry of the period of eight years from the date of such transfer, the ] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][may, notwithstanding anything contained in this Act, recompute the total income of the transferrer company for the relevant previous year and make the necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the capital asset was so converted or treated or in which the parent company or its nominees or, as the case may be, the holding company ceased to hold the whole of the share capital of the subsidiary company.] [ Inserted by Act 67 of 1984, Section 30 (w.e.f. 1.4.1985).][* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][* * *] [ Sub-Sections (7-A), (8), (8-A), (9), (9-A) and (10) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][(10-A) Where in the assessment for any year, a capital gain arising from the transfer of a ] [Inserted by Act 29 of 1977, Section 25 (w.e.f. 1.4.1978).][long-term capital asset] [ Substituted by Act 11 of 1987, Section 74, for " capital asset, not being a short-term capital asset" (w.e.f. 1.4.1988).][is charged to tax and within a period of six months after the date of such transfer, the assessee has made any investment or deposit in any specified asset within the meaning of Explanation 1 to sub-section (1) of section 54-E, the ] [Inserted by Act 29 of 1977, Section 25 (w.e.f. 1.4.1978).] [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax ] [Inserted by Act 29 of 1977, Section 25 (w.e.f. 1.4.1978).][under the provisions of sub-section (1) of section 54-E] [ Substituted by Act 19 of 1978, Section 19, for " under the provisions of section 54-E" (w.r.e.f. 1.4.1978).][, and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being ] [Inserted by Act 29 of 1977, Section 25 (w.e.f. 1.4.1978).][reckoned from the end of the financial year in which the assessment was made] [ Substituted by Act 67 of 1984, Section 30, for " reckoned from the date of assessment" (w.e.f. 1.10.1984).].[* * *] [ Sub-Sections (10-B) and (10-C) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).][* * *] [ Sub-Sections (10-B) and (10-C) omitted by Act 4 of 1988, Section 61 (w.e.f. 1.4.1992).](11)[ Where in the assessment for any year, a capital gain arising from the transfer of any original asset as is referred to in section 54-H is charged to tax and within the period extended under that section the assessee acquires the new asset referred to in that section or, as the case may be, deposits or invests the amount of such capital gain within the period so extended, the Assessing Officer shall amend the order of assessment so as to exclude the amount of the capital gain not chargeable to tax under any of the sections referred to in section 54-H; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of section 154 being reckoned from the end of the previous year in which the compensation was received by the assessee.] [ Inserted by Act 49 of 1991, Section 48 (w.e.f. 1.10.1991).][(11-A) Where in the assessment for any year, the deduction under section 10-A or section 10-B or section 10-BA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 10-A or section 10-B or section 10-BA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India, and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into, India.] [ Inserted by Act 29 of 2006, Section 14 (w.e.f. 13.7.2006).](12)[ Where, in the assessment for any year commencing before the 1st day of April, 1988, the deduction under section 80-O in respect of any income, being the whole or any part of income by way of royalty, commission, fees or any similar payment as is referred to in that section, has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80-O in respect of such income or part thereof as is so received in, or brought into, India; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such income is so received in, or brought into, India; so, however, that the period from the 1st day of April, 1988 to the 30th day of September, 1991, shall be excluded in computing the period of four years.] [ Inserted by Act 49 of 1991, Section 48 (w.e.f. 1.10.1991).](13)[ Where in the assessment for any year, the deduction under section 80-HHB or section 80-HHC or section 80-HHD or section 80-HHE or section 80-O or section 80-R or section 80-RR or section 80-RRA has not been allowed on the ground that such income has not been received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, has not been brought into India, by or on behalf of the assessee with the approval of the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange and subsequently such income or part thereof has been or is received in, or brought into, India in the manner aforesaid, the Assessing Officer shall amend the order of assessment so as to allow deduction under section 80-HHB or section 80-HHC or section 80-HHD or section 80-HHE or section 80-O or section 80-R or section 80-RR or section 80-RRA, as the case may be, in respect of such income or part thereof as is so received in, or brought into, India; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which such income is so received in, or brought into, India.] [ Inserted by Act 27 of 1999, Section 66 (w.e.f. 1.6.1999).](14)[ Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year, ] [Inserted by Act 20 of 2002, Section 62 (w.e.f. 1.6.2002).][credit for tax deducted or collected in accordance with the provisions of section 199 or, as the case may be, section 206-C] [ Substituted by Act 21 of 2006, Section 39, for " credit for tax deducted in accordance with the provisions of section 199" (w.e.f. 1.4.2007).][has not been given on the ground that the certificate furnished under ] [Inserted by Act 20 of 2002, Section 62 (w.e.f. 1.6.2002).][section 203 or section 206-C] [ Substituted by Act 21 of 2006, Section 39, for " section 203" (w.e.f. 1.4.2007).] [was not filed with the return and subsequently such certificate is produced before the Assessing Officer within two years from the end of the assessment year in which such income is assessable, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto:Provided that nothing contained in this sub-section shall apply unless the ] [Inserted by Act 20 of 2002, Section 62 (w.e.f. 1.6.2002).] [income from which the tax has been deducted or income on which the tax has been collected] [ Substituted by Act 21 of 2006, Section 39, for " Income from which the tax has been deducted" (w.e.f. 1.4.2007).][has been disclosed in the return of income filed by the assessee for the relevant assessment year.(15)Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being land or building or both, is computed by taking the full value of the consideration received or accruing as a result of the transfer to be the value adopted or assessed by any authority of a State Government for the purpose of payment of stamp duty in accordance with sub-section (1) of section 50-C, and subsequently such value is revised in any appeal or revision or reference referred to in clause (b) of sub-section (2) of that section, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the full value of the consideration to be the value as so revised in such appeal or revision or reference; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order revising the value was passed in that appeal or revision or reference.] [Inserted by Act 20 of 2002, Section 62 (w.e.f. 1.6.2002).](16)[ Where in the assessment for any year, a capital gain arising from the transfer of a capital asset, being a transfer by way of compulsory acquisition under any law, or a transfer, the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, is computed by taking the compensation or consideration as referred to in clause (a) or, as the case may be, the compensation or consideration enhanced or further enhanced as referred to in clause (b) of sub-section (5) of section 45, to be the full value of consideration deemed to be received or accruing as a result of the transfer of the asset and subsequently such compensation or consideration is reduced by any Court, Tribunal or other authority, the Assessing Officer shall amend the order of assessment so as to compute the capital gain by taking the compensation or consideration as so reduced by the Court, Tribunal or any other authority to be the full value of consideration; and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years shall be reckoned from the end of the previous year in which the order reducing the compensation was passed by the Court, Tribunal or other authority.(17)Where a deduction has been allowed to an assessee in any assessment year under section 80-RRB in respect of any patent, and subsequently by an order of the Controller or the High Court under the Patents Act, 1970 (39 of 1970),-(i)the patent was revoked, or(ii)the name of the assessee was excluded from the patents register as patentee in respect of that patent, the deduction from the income by way of royalty attributable to the period during which the patent had been revoked or the period for which the assessee's name was excluded as patentee in respect of that patent, shall be deemed to have been wrongly allowed and the Assessing Officer may, notwithstanding anything contained in this Act, recompute the total income of the assessee for the relevant previous year and make necessary amendment; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which such order of the Controller referred to in clause (b) of sub-section (1), or the High Court referred to in clause (i) of sub-section (1) of section 2, of the Patents Act, 1970 (39 of 1970), as the case may be, was passed.][Explanation. - For the purposes of this section,-(a)"additional compensation" shall have the meaning assigned to it in clause (1) of the Explanation to sub-section (2) of section 54;(b)"additional consideration", in relation to the transfer of any capital asset the consideration for which was determined or approved by the Central Government or the Reserve Bank of India, means the difference between the amount of consideration for such transfer as enhanced by any Court, tribunal or other authority and the amount of consideration which would have been payable if such enhancement had not been made.]
