Section 288 — Other amendments

(1) The Assessing Officer, may carry out such actions as are specified in
column B of the Table below for reasons mentioned therein, subject to the
conditions as specified in column C, within four years referred to in section 287(8)
which shall be reckoned from the time as specified in column D, and the provisions
of section 287 shall, so far as may be, apply to such amendment:—
TABLE
Sl.
No.
Actions Conditions Time
A B C D
1. Amendment of
order of assess -
ment of the part -
ner of a firm so
as to adjust the
income of the part-
ner corresponding
to the amount not
deductible under
section 35(e).
Where any remuneration to any
partner determined in completed
assessment of the firm is sub -
sequently found not deductible
under section 35(e) in terms of—
( a) assessment or reassess -
ment of the firm; or
( b) any reduction or enhance-
ment made in the income of
the firm under this section
or section 287 or 359 or 363
or 365 or 368 or 377 or 378;
or
( c) any order passed under
section 245D(4) of the
Income-tax Act, 1961
(43 of 1961) on the appli -
cation made by the firm.
From the end of the
financial year in
which the subsequent
order was passed in
the case of the firm.
2. Amendment of
order of assess -
ment of the mem -
ber of an associ -
ation of persons
or of a body of in-
dividuals; so as to
include the share
of the member in
the assessment or
the corrections
thereof.
Where the share of the member
in the income of the association
of persons or body of individuals
determined in completed assess-
ment is subsequently found not
included in the assessment of
the member or, if included, is not
correct in terms of—
( a) assessment or reassess -
ment of the association or
body;
( b) any reduction or enhance-
ment made in the income
of the association or body
under this section or sec -
tion 287 or 359 or 363 or
365 or 368 or 377 or 378;
or
( c) any order passed under
section 245D(4) of the
Income-tax Act, 1961 (43
From the end of the
financial year in
which the subsequent
order was passed in
the case of the asso -
ciation or body.
Sl.
No.
Actions Conditions Time
A B C D
of 1961) on the application
made by the association or
body.
3. Total income of the
assessee in respect
of succeeding year
or years referred
to in column C,
to be recomput -
ed and necessary
amendment made
consequent to pro-
ceedings initiated
under section 279
for any tax year.
Where there is recomputation of
loss or depreciation for any tax
year, and in consequence to such
recomputation, 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 section 111(1)
or 112(1) or 113(2) or 115(1) is
required to be recomputed.
From the end of the fi-
nancial year in which
the order under sec -
tion 279 was passed.
4. The total income
of the transferor
company for the
tax year referred
to in column C, to
be recomputed and
necessary amend -
ment made.
Where in the assessment for any
tax year,—
( a) the capital gain arising
from the transfer of a cap-
ital asset is not charged
under section 6717 in terms
of section 70(1)(c) or (d);
( b) such gains are deemed
under section 71(1) 19 as
“Capital gains” of the tax
year in which the transfer
took place at any time be-
fore the expiry of the period
of eight years from the date
of such transfer by reason
of—
( i) such capital asset be-
ing 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,
the holding company
ceasing to hold the
From the end of the
year—
( i) in which the
capital asset
was converted
or treated as
stock-in-trade;
or
( ii) in which the
parent compa -
ny or its nom -
inees or, the
holding com -
pany ceased
to hold the
whole of the
share capital of
the subsidiary
company.
Sl.
No.
Actions Conditions Time
A B C D
whole of the share
capital of the subsid-
iary company.
5. The order of as -
sessment to be
amended; so as to
exclude the capital
gain not charge -
able to tax under
any of the sections
referred to in sec -
tion 89.
Where in the assessment for any
tax year, a capital gain on transfer
of original asset, referred to in
section 89 is charged to tax and
within the period extended under
that section—
( a) the assessee acquires the
new asset referred to in
that section; or
( b) deposits or invests such
capital gain.
From the end of the fi-
nancial year in which
the compensation
was received by the
assessee.
6. The order of as -
sessment to be
amended to allow
deduction in re -
spect of such in -
come or part there-
of as is so received
in, or brought into,
India.
Where in the assessment for
any year, any deduction under
section 144 has not been allowed
on the ground that—
( a) such income has not been
received in convertible
foreign exchange in India;
or
( b) such income 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 regulat-
ing payments and dealings
in foreign exchange,
From the end of the fi-
nancial year in which
such income is so re-
ceived in, or brought
into, India.
Sl.
No.
Actions Conditions Time
A B C D
and subsequently such income
or part thereof has been or is re-
ceived in, or brought into, India
as required for the deduction.
7. The order of assess-
ment or any inti -
mation or deemed
intimation under
section 270(1), to
be amended, to
give credit for in -
come-tax for the
year in which such
income is offered
to tax or assessed
to tax in India.
Where in the assessment for any
tax year or in any intimation or
deemed intimation under section
270(1) for any tax year,—
( a) credit for income-tax paid
in any country outside In-
dia or a specified territory
outside India referred to in
Chapter IX-B has not been
given on the ground that
the payment of such tax
was under dispute; and
( b) 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—
( i) evidence of settle -
ment of dispute and
evidence of payment
of such tax; and
( ii) an undertaking that
no credit in respect
of such amount has
directly or indirectly
been claimed or shall
be claimed for any
other tax year.
From the end of the
financial year in
which such dispute
is settled.
8. The order of as -
sessment to be
amended to com -
pute the capital
gain by taking the
full value of the
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—

From the end of the fi-
nancial year in which
the order revising the
value was passed in
appeal or revision or
reference.
Sl.
No.
Actions Conditions Time
A B C D
consideration to
be the value as so
revised in appeal
or revision or ref -
erence.
( a) 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 Gov -
ernment for the purpose
of payment of stamp duty
as per section 78(1); and
( b) subsequently such value is
revised in any appeal or re-
vision or reference referred
to in section 78(2)(b).
9. The order of as -
sessment to be
amended to com -
pute 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.
( a) Where in the assessment
for any year, a capital gain
arising from the transfer
of a capital asset being
a transfer referred to in
clause (b) is computed—
( i) by taking the com -
pensation or consid-
eration as referred to
in section 67(12)( a)
or, as the case may
be, the compensa -
tion or consideration
enhanced or further
enhanced as referred
to in section 67(12)
(b), to be the full val-
ue of consideration
deemed to be re -
ceived or accruing as
a result of the transfer
of the asset; and
( ii) subsequently such
compensation or
consideration is re -
duced by any court,
Tribunal or other
authority.
From the end of the
financial year in
which the order re -
ducing the compen -
sation was passed by
the court, Tribunal or
other authority.
Sl.
No.
Actions Conditions Time
A B C D
( b) The transfer and consider-
ation referred to in clause
(a) shall be,—
( i) transfer by way of
compulsory acquisi-
tion under any law;
( ii) consideration that
was determined or
approved by the Cen-
tral Government or
the Reserve Bank of
India.
10. Recomputation of
the total income
to disallow the de-
duction allowed
under section 152.
Where a deduction has been
allowed to an assessee in any tax
year under section 152 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),—
( a) the patent was revoked, or
( b) 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 name of the as-
sessee was excluded as patentee
in respect of that patent, shall be
deemed to have been wrongly
allowed.
From the end of the
financial year in
which the order of
the Controller under
section 2(1)( b), or
the High Court under
section 2(1)(i), of the
Patents Act, 1970 (39
of 1970), was passed.
11. Amendment of the
order of assess -
ment or any inti -
mation to allow
credit of such tax
deducted at source
in the tax year re -
ferred to in column
C, and the credit of
such tax deducted
( a) Where any income has
been included in the return
of income furnished by an
assessee under section 263
for any tax year, and tax
on such income has been
deducted at source and
paid to the credit of the
Central Government as per
the provisions of Chapter
From the end of the fi-
nancial year in which
such tax has been
deducted.
Sl.
No.
Actions Conditions Time
A B C D
at source not to
be allowed in any
other tax year.
XIX-B in a subsequent tax year;
and
( b) an application is made by
an assessee in such form, as
may be prescribed, within
two years from the end of
the tax year in which such
tax was deducted at source.
(2)(a) Where the arm’s length price is determined in relation to an international
transaction or a specified domestic transaction under section 166(6) for any tax year
and the Transfer Pricing Officer has declared that an option exercised by the assessee
is valid under section 166(9) in respect of such transaction for two consecutive tax
years immediately following such tax year, the Assessing Officer shall proceed to
recompute the total income of the assessee for the said two consecutive tax years,
by amending the order of assessment or any intimation or deemed intimation under
section 270(1)31, as the case may be,—
( i) in conformity with the arm’s length price so determined by the Transfer
Pricing Officer under section 166(12) in respect of such transaction; and
( ii) taking into account the directions issued under section 275(5), if any, for
such tax year,
within three months from the end of the month in which the assessment is com -
pleted in the case of the assessee for such tax year, and the provisions of sections
165(7) and (8) shall apply thereto.
(b) Where the order of assessment or any intimation or deemed intimation under
section 270(1) as referred to in sub-section (1), for the said two consecutive tax years
is not made within the said three months, such recomputation shall be made within
three months from the end of the month in which such order of assessment or any
intimation or deemed intimation under section 270(1)31, as the case may be, is made.