Sec. 139: This Sec. relates to persons required
to furnish a return of income and those exempted. The Finance Bill,
2012 has proposed to insert a new proviso that a person who is a
resident and is not required to furnish a return of income and who
has any asset (including any financial interest in any entity)
located outside India or is a signing authority in any account
located outside India shall furnish a return of its income or loss
in the previous year.
Sec. 140A: This Sec. provides that an assessee
shall be liable to pay the amount of tax payable on the basis of
any return required to be furnished. However, such tax shall be
computed after taking into account the amounts mentioned in Sec.
140A(1)(i) to (v). The Finance Bill, 2012 has proposed an amendment
to Sec. 140A(1)(v) to include any amount of Alternate Minimum Tax
paid u/s 115JD. Corresponding amendments have also been proposed to
be made in Sec.s 140A(1A)(i)(e) and in clause (iv) in the
Explanation to Sec. 140A(1B). This amendment shall come into effect
from 1st April, 2013.
Sec. 143(1D): Sec. 143 provides the manner of
assessment and processing of the return of income of an assessee.
The proposed insertion which will be effective from 1st July, 2012,
provides that the processing of a return shall not be necessary if
the assessee has been served a notice of explaining any loss,
exemption, deduction, allowance or relief claimed in the return of
Application of GAAR
Sec. 144BA: This new Sec. has been proposed to
be introduced w.e.f. 1st April, 2013 to provide that at any stage
of assessment or reassessment, if the Assessing Officer is of the
opinion that any particular arrangement is for the avoidance of tax
and could fall within the ambit of Chapter X-A (GAAR), he may refer
such a case to the Commissioner of Income tax.
Dispute resolution panel
Sec. 144C: This Sec. provides for the manner of
referring an order of an AO to the Dispute Resolution Panel. The
Finance Bill, 2012 has made a proposed amendment to sub-Sec.s (4)
and (13) to include Sec. 153B along with Sec. 153 (search and
seizure). This amendment shall come into effect from 1st October,
An Explanation is being added to sub-Sec. (8) to say that the
power of the Dispute Resolution Panel to enhance the variations in
a draft order shall extend to any matter arising out of the
assessment proceedings, whether or not such matter had been raised
by the eligible assessee. This amendment shall come into effect
from 1st April, 2009. New sub-Sec. (14A) is proposed to be inserted
to provide that the provisions of this Sec. shall not apply to any
order of assessment or reassessment passed under Sec. 144BA(12).
This amendment shall come into effect from 1st April, 2013.
Reopening of assessment to last 16 years w.r.t foreign
Sec. 147: This Sec. provides for the manner in
which any income which has escaped assessment can be brought to
assessment upon the same coming to the notice of the AO. A new
proviso has been proposed to be inserted which will be effective
from 1st July, 2012 to provide that the limitation period of four
years for the end of the relevant assessment year, shall be
extended to 16 years if any income in relation to any asset
(including financial interest in any entity) located
outside India, chargeable to tax, has escaped assessment
for any assessment year.
It is further explained that the provisions of this Sec. as
proposed to be amended shall also apply to any assessment year
beginning on or before 1st April, 2012.
A similar amendment has also been made to Wealth tax assessment
Notice for reopening of assessment:
Sec. 149: Consequently Sec. 149 has been
amended, so that notice for reopening of assessment may be issued
as far back as sixteen years from the end of the relevant
assessment year. Notice of reopening of assessment u/s 148 may be
served on an agent of a non-resident u/s 163 as far back as six
years from the end of the relevant assessment year.
Assessment or reassessment in search
Sec. 153A: This Sec. provides for assessment
and reassessment of cases where a search is initiated or books of
accounts or any assets are requisitioned. A new proviso has been
proposed to be introduced whereby the Central Government may notify
the class or classes of cases where the Assessing Officer shall not
be required to issue notice under this section. New Sec. 153C also
empowers the Central Govt. to specify classes when such money and
documents belongs to any other person.
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