Comparison of section 285 "Other provisions." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ffect taxpayers and assessing officers; the effective date or decision date is Not stated in the document. Background & Scope Statutory hooks: section 279 (assessment, reassessment or recomputation procedures), and the enumerated related provisions referenced in sub-section (2)(b) and sub-section (3) - sections 356, 357, 378, 287, 288, 365(10), 368 and 377. The clause addresses (i) the rate at which tax is chargeable in assessments/reassessments/recomputations u/s 279, (ii) the conditions under which proceedings u/s 279 shall be dropped (or may be dropped), and (iii) the effect of a claim on the ability to reopen matters concluded by specified orders. The text contains no definitions or extended explanations beyond the three sub-sections.....

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....ording, however, suggests the following interpretive points grounded solely in the text: (a) sub-section (1) fixes the chargeable tax rate for section 279 actions by reference to the rates that would apply if the escaped income had been included; (b) sub-section (2) conditions the cessation of section 279 proceedings on a claim by the assessee satisfying two specified criteria; and (c) sub-section (3) imposes finality - an assessee who obtains relief under sub-section (2) relinquishes the right to reopen certain matters. Any legislative history, purposive statements or explanatory memorandum are Not stated in the document. Exceptions/Provisos No express provisos or carve-outs beyond the two-part condition in sub-section (2) and the non-en....

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....es section 279 as the triggering procedural provision; sections 356, 357 and 378 as bars to claiming the dropping of proceedings; and sections 287, 288, 365(10), 368 and 377 as matters that cannot be reopened once a claim under sub-section (2) is allowed. Any interaction with rules, notifications or circulars is Not stated in the document. Practical Implications * Compliance and risk areas : The assessee seeking to stop proceedings u/s 279 must be able to demonstrate both limbs in sub-section (2). The taxpayer should ensure no pending impugnment under the specified sections for the relevant year, because such impugnment precludes relief. * Record-keeping/evidence points suggested by the text: The assessee will need contemporaneous evid....

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.... Differences between the two provisions and Practical Impact Topic Clause 285 (Bill, Old Version) Section 285 (Act text) Operative verb/authority "The Assessing Officer may drop the proceedings initiated u/s 279 on a claim made by the assessee..." "The proceedings initiated u/s 279 shall be dropped on a claim made by the assessee and on his showing to the effect that..." Degree of discretion Affirms express discretion to the Assessing Officer ("may"). Removes the explicit grant of AO discretion in the operative clause and frames dropping as mandatory ("shall be dropped") on fulfilment of the claim conditions. Practical impact - taxpayers Under the Bill text, even if the assessee satisfies the two limbs, the AO retains ....