Provision for cases where assessment is in pursuance of an order on appeal, etc.
[Section-283 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 283(1) of Income Tax Act 2025
283(1) Irrespective of anything contained in sections 280 and 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 by way of appeal, reference or revision or by a Court in any proceeding under any other law; or
- (b) the directions issued by the Approving Panel under section 274(6).
Section 283(2) of Income Tax Act 2025
283(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).
FAQs on Section 283 of Income Tax Act 2025
What is the main purpose of Section 283 of the Income Tax Act, 2025?
Section 283 provides special provisions for issuing a notice under Section 280 to make an assessment, reassessment, or recomputation in consequence of or to give effect to certain orders, even if the standard timelines under Sections 280 and 282 do not allow it.
Can an assessment be initiated at any time under Section 283(1)?
Yes, under Section 283(1), a notice under Section 280 can be issued at any time if it is required to give effect to a finding or direction from specified appellate or judicial proceedings.
What types of orders allow for issuance of notice under Section 283(1)?
Notices can be issued to give effect to orders passed by any authority, Tribunal, or court under this Act by way of appeal, reference, or revision, or orders by a Court in proceedings under any other law. It also includes directions from the Approving Panel under Section 274(6).
Is Section 283(1) applicable despite time limitations in Sections 280 and 282?
Yes, Section 283(1) overrides the time limitations mentioned in Sections 280 and 282 for the specific cases it covers.
Does Section 283 apply if the Approving Panel issues directions under Section 274(6)?
Yes, if the Approving Panel issues directions under Section 274(6), the notice under Section 280 may be issued at any time for assessment or recomputation.
Are there any restrictions on applying Section 283(1)?
Yes, under Section 283(2), the provision does not apply if the relevant assessment, reassessment, or recomputation could not have been made due to expiry of the permissible time limits at the point when the appellate or reference order was passed or when the reference to the Approving Panel was made.
What is the significance of Section 283(2) in relation to Section 283(1)?
Section 283(2) acts as a safeguard to ensure that Section 283(1) is not misused where action was already time-barred at the point when the appellate or panel reference occurred.
What does clause (a) of Section 283(2) refer to?
Clause (a) refers to situations where the original order that led to the appeal, reference, or revision had already made the assessment time-barred under other provisions.
What does clause (b) of Section 283(2) cover?
Clause (b) addresses scenarios where a reference was made to the Approving Panel under Section 274(4), and at that time, the limitation for assessment or recomputation had already expired.
Does Section 283 allow for unlimited time for reopening assessments?
Not entirely. While Section 283(1) provides flexibility, Section 283(2) limits its applicability where the opportunity for assessment had already expired by the time the appellate or reference process was initiated.
What kind of findings or directions can trigger Section 283(1)?
Findings or directions must be included in a formal order from appellate authorities, Tribunals, courts, or the Approving Panel, and must require some form of assessment action.
Can Section 283 be invoked without a formal direction from an appellate or judicial body?
No, Section 283 can only be invoked when there is a formal finding or direction in an order as specified under subsection (1).
Does Section 283 affect assessments under other sections of the Act?
Section 283 specifically overrides the provisions of Sections 280 and 282 but does not impact other unrelated sections unless directly connected.
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