Income-tax Act,1961
Act No : 43
Section :
Other amendments
155. Other amendments (1) 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, 2[or] 3[(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 4[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 ----------------------------------------------------------------------- 1 Substituted for "Where, in respect of any completed assessment of a partner in a firm" by the Finance Act, 1992, w.e.f. 1-4-1993. Earlier, the above expression was substituted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 but was restored to its original form by the Direct Tax Laws (Amendment) Act, 1989, with effect from the same date. 2 Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10- 1984. 3 Ibid. 4 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------ 1.558 sub-section (7) of that section being reckoned 1[from the end of the financial year in which the final order was passed] in the case of the firm. 2[(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, 3[or] 4[(C) on any order passed under subsection (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 5[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 6[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. 7[ (3) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.] ----------------------------------------------------------------------- 1 Substituted for "from the date of the final order passed" by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 2 Inserted by-the Finance Act, 1992, w.e.f. 1-4-1993. 3 Inserted by the Taxation Laws, (Amendment) Act, 1984, w.e.f. 1-10-1984. 4 Ibid. 5 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 6 Substituted for "from the date of the final order, passed" by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 7 Prior to the omission, sub-section (3), as amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: -> -> ------------------------------------------------------------------------ 1.559 (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) 1[or sub-section (3)] of section 74, 2[or sub-section (3) of section 74A,] the 3[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 4 [from the end of the financial year in which the order was passed] under section 147. 5[(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 6 (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 -> -> "(3) Where the excess profits tax or the business profits tax payable by an assessee has been modified in appeal, revision or any other proceeding, or where any excess profits tax has been assessed after the completion of the corresponding .assessment for income-tax and in consequence thereof, it is necessary to amend the total income of the assessee chargeable to income-tax, the Assessing Officer may 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 date of the order making modifying the assessment of such excess profits tax or business profits tax, as the case may be. Explanation.-For the purposes of this sub-section, where the assessee is a firm, the provisions of sub-section (1) shall also apply as they apply to the amendment of the assessment of the partners of the firm." 1 Inserted by the Finance Act, 1987, w.e.f. 1-4-1988. 2 Inserted by the Finance Act, 1974, w.e.f. 1-4-1975. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Substituted for "from the date of the order passed" by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 5 Inserted by the Finance Act, 1976, w.e.f. 1-4-1976. 1.560 of the nature referred to in clauses (a), (b) and (d) of the 1[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 the 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 2[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 3[Explanation below sub-section (2) of section 32A].] 4(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 5 (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 ----------------------------------------------------------------------- 1 Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 2 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 3 Substituted for "Explanation to clause (vi) of sub-section (1) of section 32" by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 1.561 (ii) at any time before the expiry of the eight years referred to in subsection (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 1[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.] 2[(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 3 (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 subsection (3) of section 33A, the assessee utilises the amount credited to the reserve account under clause (ii) of that subsection- (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 under-taking, the development allowance originally allowed shall be deemed to have been wrongly allowed, and the 4 [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 ----------------------------------------------------------------------- 1 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 2 Inserted by the Finance Act, 1965, w.e.f. 1-4-1965. 4 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------ 1.562 from the end of the previous year in which the sale or transfer took place or the money was so utilised.] 1[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.] 2[(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 3[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.] 4[ (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 5[Assessing] Officer may proceed to recompute the distributable income. and determine the 6[ tax] payable on the basis of such recomputation and make the necessary ----------------------------------------------------------------------- 1 Inserted by the Finance Act, 1975, w.r.e.f. 1-4-1965. 2 Reintroduced by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, it was omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992. It was inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981. 3 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 4 Prior to the omission, sub-section (6), as amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "(6) Where any such debt or part of debt as is referred to in clause (vii) of subsection (1) of section 36 is written off as irrecoverable in the accounts of the assessee for a previous year and the Assessing Officer is satisfied that such debt or part thereof became a bad debt in an earlier previous year not falling beyond a period of four previous years immediately preceding the previous year in which the debt or part is written off, the Assessing Officer may, notwithstanding anything contained in this Act, allow such debt or part as a deduction for such earlier previous year, if the assessee accepts such a finding of the Assessing Officer, and recompute the total income of the assessee for such earlier 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 financial year in which the assessment relating to the previous year in which the debt is written off is made." 5 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. 6 Substituted for "super-tax" by the Finance Act, 1965, w.e.f. 1-4- 1965. ------------------------------------------------------------------------ 1.563 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 1[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. 2[(7A) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f 1-4-1992.] 3[(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 4[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.] ---------------------------------------------------------------------- 1 Substituted for "from the date of the final order passed" by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 2 Prior to the omission, sub-section (7A), as inserted by the Finance Act, 1978, w.r.e.f. 1-4-19-74 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "(7A) Where, in the assessment for any year, the 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 under section 48 and the compensation for such acquisition or the consideration for such transfer is enhanced or further enhanced by any court, tribunal or other authority, the computation or, as the case may be, computations made earlier shall be deemed to have been wrongly made and the Assessing Officer shall, notwithstanding anything contained in this Act, recompute, in accordance with section 48 the capital gain arising from such transfer by taking the compensation or the consideration enhanced or further enhanced, as the case may be, to be the full value of the consideration received or accruing as a result of such transfer and shall 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 subsection (7) of that section being reckoned from the end of the previous year in which the additional compensation or consideration was received by the assessee." 3 Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4- 1985. 4 Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------ 1.564 1[(8) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 2[(8A) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 3[(9) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 4[(9A)Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. ------------------------------------------------------------------------ 1 Prior to the omission, sub-section (8), as amended by the Finance Act, 1978, w.r.e.f. 1-4-1974; Finance Act, 1982, w.e.f. 1-4-1983; Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984; Finance Act, 1986, w.e.f. 1-4-1987 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "(8) Where, in the assessment for any year, a capital gain arising from the transfer of any such capital asset as is referred to in section 54 is charged to tax and within a period of two years after the date of the transfer, the assessee purchases, or within three years from that date constructs, a residential house, the Assessing Officer shall amend the order of assessment so as to exclude the amount of the capital pin not chargeable to tax under the provisions of sub-section (1) of section 54; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in subsection (7) of that section being reckoned from the end of the financial year in which the assessment was made." Prior to the omission, sub-section (8A), as inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974 and amended by the Finance Act, 1982, w.e.f. 1-4-1983; Finance Act, 1986, w.e.f. 1-4-1987 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under. "(8A) Where, in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition under any law of any such capital asset as is referred to in section 54 is charged to tax and if the compensation for such acquisition is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and the assessee purchases, within a period of two years after the date of receipt of the additional compensation or constructs, within a period of three years after that date, a residential house, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54; 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 additional compensation was received by the assessee." 3 Prior to the omission, sub-section (9), as inserted by the Finance Act, 1973, w.r.e.f. 1-4-1970 and amended by the Finance Act, 1978, w.r.e.f. 1-4-1974; Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4- 1988, read as under: "(9) Where, in the assessment year for any year, a capital gain arising from the transfer of any such capital asset as is referred to in section 54B is charged to tax and within a period of two years after the date of the transfer, the assessee purchases any other land for being used for agricultural purposes, the, Assessing Officer shall amend the order of assessment so as to exclude the amount to the capital gain not chargeable to tax under the provisions of sub-section (1) of section 54B; 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." 4 Prior to the omission, sub-section (9A), as inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under. "(9A) Where, in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition under any law of any such capital -> -> ----------------------------------------------------------------------- 1.565 1-4-1992.] 4[(10) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 2[( 10A) Where, in the assessment for any year, a capital gain arising from the transfer of a 3[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 4[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 ---------------------------------------------------------------------- -> > asset as is referred to in section 54B is charged to tax and if the compensation for such acquisition is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and within a period of two years after the receipt of the additional compensation, the assessee purchases any land for being used for agricultural purposes, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54B; 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 additional compensation was received by the assessee." 1 Prior to the omission, sub-section (10), as inserted by the Finance Act, 1973, w.e.f. 1-4-1974 and amended by the Finance Act, 1978, w.r.e.f. 1-4-1974; Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4- 1988, read as under: "(10)(a) Where, in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition of any such capital asset as is referred to in section 54D is charged to tax and within a period of three years after the date of the transfer, the assessee purchases any other land or building or any right in any other land or building or constructs any other building for the purposes of shifting or reestablishing the industrial undertaking referred to in that section or setting up another industrial undertaking, 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 54D; 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. (b) Where, in the assessment for any year, a capital gain arising from the transfer by way of compulsory acquisition of any such capital asset as is referred to in section 54D is charged to tax and if the compensation for such acquisition is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and within a period of three years after the date of receipt of the additional compensation, the assessee purchases any land or building or any right in any land or building or constructs any building for the purpose of shifting or re-establishing the undertaking referred to in sub-section (1) of that section or setting up any other industrial undertaking, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (2) of section 54D; 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 additional compensation was received by the assessee." Inserted by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978. Substituted for "capital asset, not being a short-term capital asset" by the Finance Act, 1987, w.e.f. 1-4-1988. Substituted for "Income-tax" by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988. ------------------------------------------------------------------------ 1.566 of 1[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 2[reckoned from the end of the financial year in which the assessment was made]. 3[(10B) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 4[(10C) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1992.] 5[(11) Where in the assessment for any year, a capital gain arising ----------------------------------------------------------------------- 1 Inserted by the Finance Act, 1978, w.r.e.f. 1-4-1974. 2 Substituted for "reckoned from the date of the assessment" by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984. 3 Prior to the omission, sub-section (10B), as inserted by the Finance Act, 1978, w.e.f. 1-4-1978 and amended by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "(10B) Where; in the assessment for any year, a capital gain arising from the transfer, being a transfer by way of compulsory acquisition or a transfer the ,consideration for which was determined or approved by the Central Government or the Reserve Bank of India, of any capital asset, not being a short-term capital asset, is charged to tax and if the compensation or, as the case may be, consideration for such transfer is enhanced or further enhanced, as the case may be, by any court, tribunal or other authority, and within a period of six months after the receipt of the additional compensation or consideration, the assessee invests or deposits the whole or any part of the additional compensation or consideration in any specified asset referred to in Explanation 1 of sub-section (1) of section 54E, the Assessing Officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under the provisions of sub-section (3) 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 previous year in which the additional compensation or consideration was received by the assessee." 4 Prior to the omission, sub-section (10C), as inserted by the Finance Act, 1982, w.e.f. 1-4-1983, and amended by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 and the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988, read as under: "(10C) Where in the assessment for any year a capital gain arising from the transfer of any such capital asset as is referred to in section 54F is charged to tax and within a period of one year after the late of the transfer the assessee purchases, or within three years from that date constructs, a residential house, the Assessing Officer shall amend the order of assessment so as to exclude the a mount of the capital gain not chargeable to tax under the provisions of sub- section (1) of section 54F; 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." 5 Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Earlier, sub-section (11) was inserted by the Finance Act, 1974, w.e.f. 1-4-1974 and was omitted by the Finance Act, 1985, w.e.f. 1-4- 1986. Prior to the omission, sub-section (1 1) read as under: "(11) Where in the assessment for any year, the deduction under section 8ON in respect of any income, being the whole or any part of income by way of dividends 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 I subsequently such income or part thereof is received in, or brought into India in the manner aforesaid, the Income-tax -> -> ---------------------------------------------------------------------- 1.567 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.] 1[(12) Where in the assessment for any year commencing before the 1st day of April, 1988, the deduction under section 80-0 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 80-0 in respect of such income or part thereof as is so received in, or brought info, 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, ---------------------------------------------------------------------- -> -> Officer shall amend the order of assessment so as to allow deduction under section 8ON 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 date on which such income is so received in, or brought into India." 1 Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Earlier sub-section (12) was inserted by the Finance Act, 1974, w.e.f. 1-4-1974 and was omitted by the Finance Act, 1987, w.e.f. 1-4-1988. Prior to the omission, sub-section (12) read as under: "(12) Where in the assessment for any year, the deduction under section 80-0 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 receive(. 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 pail thereof is received in, or brought into, India,. in the manner aforesaid, the Income-tax Officer shall amend the order of assessment so as to allow deduction under section 80-0 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 date on which such income is so received in or brought into, India." ---------------------------------------------------------------------- 1.568 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.] 1[(13) Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.] 2[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.]
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