Section 280 — Notice for Escaped Assessment | ITA 2025

Section 280 — - ISSUE OF NOTICE WHERE INCOME HAS ESCAPED ASSESSMENT

Section 280 is the substantive equivalent of 1961 s. 148 -- the formal NOTICE provision triggering reassessment proceedings under s. 279. The provision authorises AO to issue notice requiring assessee to file return for the year in question; once such notice is issued and complied with, the AO can proceed to reassess. POST FA 2021 RESTRUCTURING: notice under s. 280 can ONLY be issued after compliance with PRE-NOTICE PROCEDURE under s. 281 (1961 s. 148A) -- mandatory show-cause + opportunity to respond. The provision is the GATEWAY to reassessment; jurisdictional defects render entire reassessment void.

Statutory text — Income-tax Act, 2025

Marginal note -- Notice for escaped assessment

(1)(a) Before making the assessment, reassessment or recomputation under section 279, the Assessing Officer shall, subject to the provisions of section 281, issue a notice to the assessee, along with a copy of the order passed under section 281(3);

(b) the notice referred to in clause (a) shall require the assessee to furnish, within such period as may be specified therein, a return of his income or income of any other person in respect of whom he is assessable under this Act during the relevant tax year; and 59 [(c) the period specified in the notice referred to in clause (a) shall not be less than thirty days from the date of such notice but shall not exceed three months from the end of the month in which such notice is issued.]

(2) The return of income required under sub-section (1) shall be furnished in such form, verified in such manner and setting forth such other particulars, as may be prescribed, and the provisions of this Act shall apply accordingly, as if such return were a return required to be furnished under section 263.

(3) Any return of income required to be furnished under sub-section (1), furnished after the expiry of the period specified in the notice under the said sub-section, shall not be deemed to be a return under section 263.

(4) No notice under this section shall be issued unless there is information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment in the case of the assessee for the relevant tax year.

(5) No notice under this section shall be issued without prior approval of the specified authority, where the Assessing Officer has received—

(a) information under the scheme notified under section 260; or

(b) directions from the Approving Panel under section 274(6); or 58 Inserted by the Finance Act, 2026, w.e.f. 1-4-2026.

59. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, clause (c) read as under : “(c) the period specified in the notice referred to in clause (a) shall not exceed three months from the end of the month in which such notice is issued.”

(c) any finding or direction contained in an order passed by any authority, Tribunal or court in any proceeding under this Act by way of appeal, reference or revision or by a Court in any proceeding under any other law.

(6) For the purposes of this section and section 281, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means—

(a) any information in the case of the assessee for the relevant tax year as per the risk management strategy formulated by the Board from time to time;

(b) any audit objection to the effect that the assessment in the case of the assessee for the relevant tax year has not been made as per this Act;

(c) any information received under an agreement referred to in section 159 of this Act;

(d) any information made available to the Assessing Officer under the scheme notified under section 260;

(e) any information which requires action in consequence of the order of a Tribunal or a Court;

(f) any information in the case of the assessee emanating from the survey conducted under section 253, other than under sub-section (4) of the said section;

(g) any directions in the case of the assessee given by the Approving Panel under section 274(6);

(h) any finding or direction contained in an order passed by any authority, Tribunal or court in any proceeding under this Act by way of appeal, reference or revision, or by a Court in any proceeding under any other law. Procedure before issuance of notice under section 280.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 280	INCOME-TAX ACT, 1961 -- s. 148
Sub-s. (1) -- Notice content / requirement to file return	1961 s. 148(1)
Sub-s. (2) -- Limited cases without s. 281 procedure	1961 s. 148 Proviso [FA 2021]
AO assesses / reassesses under s. 270 procedure	1961 s. 148 read with 147
Sub-s. (3) -- Sanction by senior authority (s. 284) precondition	1961 s. 151

STATUTORY ARCHITECTURE

PRECONDITION (post FA 2021): (I) Information suggesting income has escaped assessment under s. 279; (II) MANDATORY pre-notice procedure under s. 281 (show-cause + assessee response + AO order); (III) SANCTION by appropriate senior authority under s. 284 (PCIT/CIT/PCCIT level depending on year). ONLY THEN s. 280 NOTICE issued. NOTICE CONTENT (sub-s. 1): (a) Specifies relevant tax year; (b) Requires assessee to FILE RETURN; (c) Treats earlier filed return as if filed in response (if any); (d) Time-window typically 30 days for compliance. POST NOTICE: AO proceeds to assess / reassess under s. 270 procedure (faceless / scrutiny / etc.). TIME-WINDOW per s. 282: (a) 3 YEARS from end of relevant tax year -- normal cases; (b) 5 YEARS where escape > INR 50 lakh; (c) 10 YEARS for search-cases / exceptional escape (FA 2024 reduced from 11 years).

FA 2021 RESTRUCTURING IMPACT

PRE-FA 2021: AO could issue s. 148 notice based on 'reason to believe'; subjective standard; large litigation. POST FA 2021: (a) STANDARD: 'information suggesting' -- objective basis; specific information from prescribed sources; (b) PRE-NOTICE PROCEDURE under s. 281 mandatory; (c) SHORTER TIME-WINDOWS (3/5/10 vs old 4/6/16); (d) HIGHER-LEVEL SANCTION required (PCIT/CIT for normal; PCCIT for >5-year). Effect: stronger procedural safeguards; reduced reopening; assessees better protected.

CASE LAW

(i) GKN Driveshafts (India) Ltd v. ITO (SC, 2003) -- pre-FA 2021 challenge: assessee can challenge reasons via writ before participating. (ii) PCIT v. Bhargava Family Trust (Bom HC, 2024) -- post-FA 2021 procedural defects render notice void. (iii) Various HC decisions: time-limit defence; sanction validity; pre-notice procedure compliance. (iv) Recent ITAT post-FA 2021 cases on s. 280 / 281 procedural challenges.

PRACTITIONER NOTES

(i) PRE-NOTICE COMPLIANCE -- s. 281 procedure mandatory; non-compliance = void notice. (ii) SANCTION VALIDATION -- check authority level (PCIT/CIT/PCCIT based on year); incorrect-level = invalid. (iii) TIME-LIMIT DEFENCE -- s. 282 limits strict; barred-by-time defence. (iv) RETURN FILING -- response within 30 days; treat as new return; preserve all original positions. (v) WRIT JURISDICTION -- early-stage challenge to s. 280 / 281 via writ at HC. (vi) APPELLATE PRESERVATION -- post-reassessment, CIT(A) / NFAC appeal within 30 days; subsequent ITAT.

CROSS-REFERENCES

Section 279 -- Income escaping assessment.
Section 281 -- Pre-notice procedure (FA 2021).
Section 282 -- Time-limit for notice.
Section 283 -- Other provisions on escaped.
Section 284 -- Sanction for notice.
Section 270 -- Assessment (reassessment via).
Section 286 -- Time limit for completion.

← All sections (537)Act 2025 hub