Other amendments.
155. (1) 2[Where, in respect of any completed
assessment3 of a partner in a firm
for the assessment year commencing on the 1st day of April, 1992, or any
earlier assessment year,] 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, 4[or]
4[(c) on any order passed under sub-section (4) of section 245D on the application made by the firm,]
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 5[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 6[from the end of
the financial year in which the final order was passed] in the case of the
firm.
7[(1A) 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 245D 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, 8[or]
8[(c) on any order passed under sub-section (4) of section 245D on the application made by the
association or body,]
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 9[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 10[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.
(3) 11[* * *]
(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) 12[or sub-section (3)] of section 74, 13[or
sub-section (3) of section 74A,] the 14[Assessing] Officer 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 15[from the end of the financial year in
which the order was passed] under section 147.
16[(4A) Where an allowance by way
of investment allowance has been made wholly or partly to an assessee17 in respect of a ship or an aircraft or
any machinery or plant in any assessment year under section
32A 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 18Government 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 32A ; 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 32A 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
19[second] proviso to sub-section
(1) of section 32A) for the purposes of the
business of the undertaking ; or
(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 32A—
(i) for distribution by way of dividends or
profits ; or
(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 20[Assessing]
Officer 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,—
(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.
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 21[Explanation below
sub-section (2) of section 32A].]
(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 transferred22 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 23Government 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 24[Assessing]
Officer 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.
25[(5A) 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 33A and subsequently—
(i) at any time before the expiry of 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 company26
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 33A ; or
(ii) at any time before the expiry of the eight
years referred to in sub-section (3) of section 33A,
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 27[Assessing]
Officer 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.]
28[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.]
29[(5B) Where any deduction in
respect of any expenditure on scientific research has been made in any
assessment year under sub-section (2B) 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 30[Assessing] Officer 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.]
(6) 31[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, 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 32[Assessing]
Officer may proceed to recompute the distributable income and determine the 33[tax] 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 34[from the end of the
financial year in which the final order was passed] in the case of the company
in respect of that proceeding.
(7A) 35[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
36[(7B) 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 47A 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 37[Assessing]
Officer may, notwithstanding anything contained in this Act, recompute the
total income of the transferor 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.]
(8) 38[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(8A) 39[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(9) 40[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(9A) 41[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(10) 42[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
43[(10A) Where in the assessment
for any year, a capital gain arising from the transfer of a 44[long-term capital asset], 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 54E, the 45[Assessing]
Officer shall amend the order of assessment so as to exclude the amount of the
capital gain not chargeable to tax under the provisions of 46[sub-section (1) of] section 54E ; 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 47[reckoned from the end of the financial
year in which the assessment was made.]
(10B) 48[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
(10C) 49[Omitted by the Direct
Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.]
50[(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 54H 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 54H; 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.]
51[(11A)
Where in the assessment for any year, the deduction under section 10A or section 10B
or section 10BA 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 10A or section
10B or section 10BA, 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.]
52[(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.]
53[(13)
Where in the assessment for any year, the deduction under section 80HHB or section
80HHC or section 80HHD or section 80HHE or section
80-O or section 80R or section 80RR or section
80RRA 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 80HHB or section 80HHC or section
80HHD or section 80HHE or section 80-O or section 80R
or section 80RR or section
80RRA, 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.]
54[(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, 55[credit
for tax deducted or collected in accordance with the provisions of section 199 or, as the case may be, section 206C] has not been given on the ground that
the certificate furnished under section 203 56[or section
206C] 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 income from which the tax has been deducted 56[or income on which the tax has been
collected] 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 50C,
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.]
57[(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
80RRB 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.]
58[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.]