India - Income Tax Act 2010 - Saarc

1.673 CH. XIV - PROCEDURE FOR ASSESSMENT S. 147Reopening of assessment at the instance of the assessee.146. 3 [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]4[Income escaping assessment.5147. If the 6 [Assessing] Officer 7 [has reason to believe 8 ] that any incomechargeable to tax has escaped assessment 8 for any assessment year, hemay, subject to the provisions of sections 148 to 153, assess or reassess 8 suchincome and also any other income chargeable to tax which has escapedassessment and which comes to his notice subsequently in the course of theproceedings under this section, or recompute the loss or the depreciationallowance or any other allowance, as the case may be, for the assessment yearconcerned (hereafter in this section and in sections 148 to 153 referred to as therelevant assessment year) :Provided that where an assessment under sub-section (3) of section 143 or thissection has been made for the relevant assessment year, no action shall be takenunder this section after the expiry of four years from the end of the relevantassessment year, unless any income chargeable to tax has escaped assessmentfor such assessment year by reason of the failure 9 on the part of the assessee tomake a return under section 139 or in response to a notice issued under subsection(1) of section 142 or section 148 or to disclose fully and truly all materialfacts 9 necessary for his assessment, for that assessment year:10[Provided further that the Assessing Officer may assess or reassess suchincome, other than the income involving matters which are the subject mattersof any appeal, reference or revision, which is chargeable to tax and has escapedassessment.]Explanation 1.—Production before the Assessing Officer of account books orother evidence from which material evidence could with due diligence havebeen discovered by the Assessing Officer will not necessarily 9 amount todisclosure within the meaning of the foregoing proviso.3. Prior to its omission, section 146 was amended by the Finance Act, 1963, w.e.f. 28-4-1963,Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1976 and Taxation Laws (Amendment)Act, 1984, w.e.f. 1-10-1984.4. Substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.5. See also Circular [F. No. 45A/180/52-IT], dated 6-12-1955. For details, see Taxmann’sMaster Guide to Income-tax Act.For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.6. Substituted for “Income-tax” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.7. Substituted for “, for reasons to be recorded by him in writing, is of the opinion” by theDirect Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.8. For the meaning of the terms/expressions “reason to believe”, “assessment”, “reassess” and“failure”, see Taxmann’s Direct Taxes Manual, Vol. 3.9. For the meaning of the expressions “failure”, “material facts” and “not necessarily”, seeTaxmann’s Direct Taxes Manual, Vol. 3.10. Inserted by the Finance Act, 2008, w.e.f. 1-4-2008.