Section 283 of Income Tax Act 2025
Provision for cases where assessment is in pursuance of an order on appeal, etc
60[Provision for cases where assessment is in pursuance of an order on appeal, etc.
- (1)Irrespective of anything contained in section 282, the notice under section 280 may be issued at any time for the purpose of making an assessment or reassessment or recomputation in consequence of, or to give effect to,—
- (a)any finding or direction contained in an order passed by any authority. Tribunal or Court in any proceeding under this Act or any other law; or
- (b)the directions issued by the Approving Panel under section 274(6).
- (2)The provisions of sub-section (1) shall not apply in any case, where the assessment or reassessment or recomputation as is referred to in that sub-section relates to a tax year in respect of which an assessment or reassessment or recomputation could not have been made under this Act due to it being time-barred, at the time when,—
- (a)the order, which was the subject-matter before any authority, Tribunal or Court, was made; or
- (b)the proceedings relating to assessment or reassessment or recomputation under this Act (other than those proceedings which have culminated in an order), which was the subject-matter before the Court, was initiated; or
- (c)the reference from the jurisdictional Principal Commissioner or Commissioner is made to the Approving Panel under section 274(4).
- (3)For the purposes of sub-section (1), notice under section 280 shall be issued within three months from the end of the quarter in which the certified copy of the order of the authority or the Court, as the case may be, is received by the jurisdictional Principal Commissioner or Commissioner.]
Summary
- This section overrides the standard time limits of Section 282 when a reassessment is needed to give effect to judicial orders or specific panel directions.
- A notice under Section 280 can be issued at any time, even if standard deadlines have expired, to comply with any finding or direction contained in an order passed by a tax authority, Tribunal, or Court.
- It can also be issued at any time to give effect to directions issued by the Approving Panel under section 274(6).
- However, this exception does not apply if the reassessment relates to a tax year that was already time-barred under Section 282 at the time the original disputed order was made or when the reference was sent to the Approving Panel.
- To initiate this process, the Section 280 notice must be issued within three months from the end of the quarter in which the certified copy of the order is received by the jurisdictional Principal Commissioner or Commissioner.
Practical examples
FAQ
1. Can a Section 280 notice be issued after the standard time limits have expired?
Yes, under Section 283(1), a notice can be issued at any time if it is done to give effect to a finding or direction from a court, tribunal, tax authority, or Approving Panel.
2. Is there any situation where the tax officer cannot use this section to reopen a case beyond standard limits?
Yes, under Section 283(2), if the tax year was already time-barred under Section 282 at the time the original subject-matter order was made, or when the reference was sent to the Approving Panel, the officer cannot issue a notice.
3. Within what timeframe must the Section 280 notice be issued after a court or tribunal order is received?
The notice must be issued within three months from the end of the quarter in which the certified copy of the order is received by the jurisdictional Principal Commissioner or Commissioner.
4. What specific entities can issue orders that trigger Section 283?
Any authority, Tribunal, or Court in any proceeding under this Act or any other law, as well as the Approving Panel under Section 274(6).
Test yourself
1.To give effect to a court order, a Section 280 notice must be issued within how many months from the end of the quarter in which the Commissioner receives the certified copy?
2.Section 283(1) allows notices to be issued bypassing standard time limits to give effect to directions issued by which body?
3.Under Section 283(2), why is a tax officer barred from issuing a notice if the tax year was already time-barred at the time the subject-matter order was passed?