Section 156A of Income Tax Act for AY 2023-24

Provisions and rules related to section 156a of Income Tax Act as inserted by Finance Act 2022. Modification and revision of notice in certain cases.

Amended and updated notes on section 156A of Income Tax Act 1961 as inserted by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to modification and revision of notice in certain cases.

Chapter XIV (Sections 139 to 158) of the Income Tax Act 1961 deals with the provisions related to procedure for assessment. Section 156A of IT Act 1961 provides for modification and revision of notice in certain cases.

Recently, we have discussed in detail section 156 (Notice of Demand) of IT Act 1961-2022.

Today, we learn the provisions of section 156A of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 156A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 156A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-156A: Modification and revision of notice in certain cases

[Section 156A newly inserted w.e.f. 1-April-2022 by the Finance Act 2022]

Section 156A (1):

Where any tax, interest, penalty, fine or any other sum in respect of which a notice of demand has been issued under section 156, is reduced as a result of an order of the Adjudicating Authority as defined in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016, the Assessing Officer shall modify the demand payable in conformity with such order and shall thereafter serve on the assessee a notice of demand specifying the sum payable, if any, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall accordingly, apply in relation to such notice.

Section 156A (2):

Where the order referred to in sub-section (1) is modified by the National Company Law Appellate Tribunal or the Supreme Court, as the case may be, the modified notice of demand as referred to in sub-section (1), issued by the Assessing Officer shall be revised accordingly.


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