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284

ITA 1961 · Section 284

Section 284 — Service of notice in the case of discontinued business

Chapter XXIII — MiscellaneousITA 1961Up to AY 2026-27

STATUTORY ARCHITECTURE — 18-ROW MAP

Function in the statutory architecture

Section 284 supports assessments of discontinued businesses under s. 176. Where such an assessment is to be made, the Assessing Officer may serve a notice on the person whose income is to be assessed, or, for a firm or association of persons, on any person who was a member of it at the time of discontinuance, or, for a company, on its principal officer.

The notice may contain all or any of the requirements that may be included in a notice under sub-section (2) of section 139, and the Act then applies, so far as may be, as if the notice had been issued under that section.

Operative consequences

  • The Assessing Officer may call for a return or other particulars from the persons named even though the business has ceased.
  • The notice carries the same legal effect as a notice under the provision of section 139 that it refers to, so the consequences of non-compliance with such a notice follow.
  • For a firm or association of persons, service on any one person who was a member at the time of discontinuance is sufficient.

Status

Section 284 is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.

The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 504.