Section 155 of Income Tax Act "Other amendments"
155. (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,
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 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 in the case of the firm.
(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, or
(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 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.
(3) [***]
(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, or
sub-section (3) of section 74A, the 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 from the end of the
financial year in which the order was passed under section
147.
(4A) 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 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 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
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 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 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 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 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 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.
(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 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 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 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.
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.
(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 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) [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 Assessing Officer may proceed to recompute the
distributable income and determine the 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 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) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(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 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) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(8A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(9) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(9A) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(10) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(10A) Where in the assessment for any year, a capital gain
arising from the transfer of a 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
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 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 reckoned from the end
of the financial year in which the assessment was made.
(10B) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
w.e.f. 1-4-1992.]
(10C) [Omitted by the Direct Tax Laws (Amendment) Act, 1987,
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 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.
(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.
(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.
(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.
(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, 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 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
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.
[(14A) 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, credit for income-tax
paid in any country outside India or a specified territory
outside India referred to in section 90, section 90A or
section 91 has not been given on the ground that the payment
of such tax was under dispute, and if subsequently such
dispute is settled; and the assessee, within six months from
the end of the month in which the dispute is settled,
furnishes to the Assessing Officer evidence of settlement of
dispute and evidence of payment of such tax along with an
undertaking that no credit in respect of such amount has
directly or indirectly been claimed or shall be claimed for
any other assessment year, 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 the credit of tax which was under dispute
shall be allowed for the year in which such income is
offered to tax or assessed to tax in India.]
(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.
(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.
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.
156. 28[(1)] When any tax, interest, penalty, fine or any
other sum is payable in consequence of any order passed
under this Act, the Assessing Officer shall serve upon the
assessee a notice of demand in the prescribed form
specifying the sum so payable :
Provided that where any sum is determined to be payable by
the assessee or the deductor or the collector under
sub-section (1) of section 143 or sub-section (1) of section
200A or sub-section (1) of section 206CB, the intimation
under those sub-sections shall be deemed to be a notice of
demand for the purposes of this section.
29[(2) Where the income of the assessee of any assessment
year, beginning on or after the 1st day of April, 2021,
includes income of the nature specified in clause (vi) of
sub-section (2) of section 17 and such specified security or
sweat equity shares referred to in the said clause are
allotted or transferred directly or indirectly by the
current employer, being an eligible start-up referred to in
section 80-IAC, the tax or interest on such income included
in the notice of demand referred to in sub-section (1) shall
be payable by the assessee within fourteen days-
(i) after the expiry of forty-eight months from the end of
the relevant assessment year; or
(ii) from the date of the sale of such specified security or
sweat equity share by the assessee; or
(iii) from the date of the assessee ceasing to be the
employee of the employer who allotted or transferred him
such specified security or sweat equity share,
whichever is the earliest.]