Section 285 — Other Provisions | ITA 2025

Section 285 — - PROVISIONS FOR ASSESSING OF ESCAPED ASSESSMENT

Section 285 is the substantive equivalent of 1961 s. 152 -- the provision dealing with provisions for assessing of escaped assessment within the assessment procedure framework under Chapter XVI. Critical provision in tax-administration for: (a) inquiry / scrutiny mechanics; (b) assessment determination; (c) re-assessment of escaped income; (d) time-limits and procedural safeguards; (e) rectification / appeals interaction. The 2025 Act preserves the substantive 1961 framework with FA 2020-onwards faceless / digital amendments incorporated.

Statutory text — Income-tax Act, 2025

Marginal note -- Provisions for assessing of escaped assessment

(1) In an assessment, reassessment or recomputation made under section 279, the tax shall be chargeable at the rate or rates at which it would have been charged had the income not escaped assessment.

(2) The proceedings initiated under section 279 shall be dropped on a claim made by the assessee and on his showing to the effect that—

(a) the assessee had been assessed on an amount not lower than what he would be rightly liable for, even if the income alleged to have escaped assessment had been taken into account, or the assessment or compu- tation had been properly made; and

(b) he has not impugned any part of the original assessment order for the relevant tax year under section 356 or 357 or 378. (Contd. from page 402)

(2) The provisions of sub-section (1) shall not apply in any case where any such assessment, reassessment or recomputation as is referred to in that sub-section relates to a tax year in respect of which an assessment, reassessment or recomputation could not have been made, by reason of any other provisions limiting the time within which any action for assessment, reassessment or recomputation may be taken, at the time when,—

(a) the order which was the subject-matter of the appeal, reference or revision, as the case may be, was made; or

(b) the reference from the jurisdictional Principal Commissioner or Commissioner is made to the Approving Panel under section 274(4).”

(3) Where a claim has been made by an assessee under sub-section (2), he shall not be entitled to reopen matters concluded by an order under section 287 or 288 or 365(10) or 368 or 377. Time limit for completion of assessment, reassessment and recomputation.

STATUTORY ARCHITECTURE: Provisions for assessing of escaped assessment is integral to the assessment framework under Chapter XVI. The provision establishes legal basis for procedural mechanics. Practitioner: (i) compliance with statutory time limits; (ii) procedural fairness; (iii) appellate/writ remedies for procedural violations; (iv) faceless framework integration post FA 2020 / FA 2021. POST-FA 2020: faceless assessment scheme has substantially shifted assessment from physical to digital format; National Faceless Assessment Centre (NFAC) coordinates with Regional Faceless Assessment Centres (ReFACs); communications via e-filing portal.

PRACTITIONER NOTES

Compliance with this provision is critical for: (i) timely response to AO communications; (ii) preserving appellate rights; (iii) avoiding adverse inferences. Procedural violations may give rise to remedy via CIT(A) / NFAC / ITAT / writ jurisdiction. Recent FA 2021 changes to ss. 279-282 (escaped assessment) introduced significant procedural safeguards including pre-notice inquiry under s. 281 (1961 s. 148A) -- mandatory show-cause before reassessment notice.

CROSS-REFERENCES

Section 268 -- Inquiry before assessment.
Section 270 -- Assessment.
Section 273 -- Faceless Assessment.
Section 286 -- Time limits.
Section 287 -- Rectification.
Income-tax Rules, 2026 -- procedural rules.

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 285	INCOME-TAX ACT, 1961 -- s. 152
Provisions for assessing of escaped assessment	1961 s. 152