Income escaping assessment
[Section-279 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 279(1) of Income Tax Act 2025
279(1) If, in the case of an assessee, any income chargeable to tax has escaped assessment for any tax year (hereinafter referred to as “the relevant tax year” in this section and sections 280 to 286, the Assessing Officer may, subject to the provisions of sections 280 to 286, for the relevant tax year,––
- (a) assess or reassess income;
- (b) recompute the loss or the depreciation allowance or any other allowance or deduction.
Section 279(2) of Income Tax Act 2025
279(2) For the purposes of the assessment or reassessment or recomputation under this section, Assessing Officer may assess or reassess––
- (a) the income which has escaped assessment;
- (b) income in respect of other issues which come to his notice subsequently in the course of the proceedings under this section, irrespective of the fact that the provisions of sections 280, 281 and 284 were not complied with.
FAQs on Section 279 of Income Tax Act 2025
What does “income escaping assessment” mean under Section 279 of the Income Tax Act, 2025?
It refers to a situation where income that was chargeable to tax was not assessed during the relevant tax year. Section 279 empowers the Assessing Officer to take action in such cases.
Who is authorized to initiate proceedings for income escaping assessment?
The Assessing Officer is authorized to initiate proceedings under Section 279, subject to compliance with Sections 280 to 286.
For which tax years can the Assessing Officer act under Section 279?
The Assessing Officer can act for any tax year where income has escaped assessment, referred to as the “relevant tax year.”
What actions can the Assessing Officer take under Section 279(1)?
The Assessing Officer may assess or reassess the income and also recompute losses, depreciation allowance, or other deductions.
Is the Assessing Officer restricted to assessing only the escaped income?
No. Under Section 279(2)(b), the Assessing Officer can also assess or reassess other issues that come to light during the proceedings, even if they do not comply with Sections 280, 281, or 284.
Does the Assessing Officer need to comply with Sections 280 to 286 for every issue reassessed?
Compliance is required for initiating action under Section 279(1), but Section 279(2)(b) allows reassessment of other issues even if Sections 280, 281, and 284 were not complied with.
Can losses or allowances already claimed be recomputed?
Yes, the Assessing Officer may recompute the loss, depreciation allowance, or any other allowance or deduction under Section 279(1)(b).
Does the term “escaped assessment” include underreported income?
Yes, income that was chargeable to tax but was either not assessed or under-assessed qualifies as having “escaped assessment.”
Can proceedings be initiated under Section 279 even if no return was filed?
Yes, if any income chargeable to tax was not assessed, the Assessing Officer can act under Section 279 even in cases where no return was filed.
Is prior approval required before initiating proceedings under Section 279?
While Section 279 itself does not specify prior approval, it is subject to the provisions of Sections 280 to 286, which may prescribe procedural safeguards.
Can reassessment include income already assessed in the original return?
Yes, if the Assessing Officer finds that income was under-assessed or allowed in excess, he may reassess that income under Section 279.
Are the powers under Section 279 limited to only income tax?
Section 279 applies to income chargeable to tax, including loss recomputation and disallowance adjustments relevant to the income tax assessment.
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