Revised IT Section 147: Income Escaping Assessment

As per Clause 35 of the Finance Bill 2021, Section 147 of the Income Tax relating to Income Escaping Assessment, is to be substituted, in view of proposed reduction in time limit for re-opening of assessment proceedings.

Proposed/ revised IT Section 147: Income Escaping Assessment

If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer may, subject to the provisions of sections 148 to 153, assess or reassess such income or re-compute the loss or the depreciation allowance or any other allowance or deduction for such assessment year (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year).

Explanation.- For the purpose of assessment or reassessment under this section, the Assessing Officer may assess or reassess the income in respect of any issue, which has escaped assessment, and such issue comes to his notice subsequently in the course of the proceedings under this section, irrespective of the fact that the provisions of section 148A have not been complied with.

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