Chapter XVI of the Income-tax Act, 2025 — Procedure for Assessment

What this chapter does

Sections 268 to 278 carry inquiry before assessment, assessment, best judgment assessment, faceless assessment, the Dispute Resolution Panel and method of accounting. Sections 279 to 286 carry reassessment: income escaping assessment, the notice, the procedure that must precede the notice, the time limits and the sanction. Sections 292 to 301 carry block assessment in search cases. Sections 287 to 291 deal with rectification, notice of demand and intimation of loss.

What to watch

• Section 281 is a condition precedent to section 280 — the procedure comes before the notice, and skipping it is jurisdictional.
• Block assessment under sections 292 to 301 is a separate code; the ordinary reassessment time limits do not govern it.

The sections in this chapter

• Section 268 — Inquiry before assessment
• Section 269 — Estimation of value of assets by Valuation Officer
• Section 270 — Assessment read in full
• Section 271 — Best judgment assessment
• Section 272 — Power of Joint Commissioner to issue directions in certain cases
• Section 273 — Faceless Assessment
• Section 274 — Reference to Principal Commissioner or Commissioner in certain cases
• Section 275 — Reference to Dispute Resolution Panel
• Section 276 — Method of accounting
• Section 277 — Method of accounting in certain cases
• Section 278 — Taxability of certain income
• Section 279 — Income escaping assessment read in full
• Section 280 — Issue of notice where income has escaped assessment read in full
• Section 281 — Procedure before issuance of notice under section 280 read in full
• Section 282 — Time limit for notice under sections 280 and 281
• Section 283 — Provision for cases where assessment is in pursuance of an order on appeal, etc
• Section 284 — Sanction for issue of notice
• Section 285 — Other provision
• Section 286 — Time limit for completion of assessment, reassessment and recomputation
• Section 287 — Rectification of mistake
• Section 288 — Other amendments
• Section 289 — Notice of demand
• Section 290 — Modification and revision of notice in certain cases
• Section 291 — Intimation of loss
• Section 292 — Assessment of total undisclosed income as a result of search
• Section 293 — Computation of total undisclosed income of block period
• Section 294 — Procedure for block assessment
• Section 295 — Undisclosed income of any other person
• Section 296 — Time-limit for completion of block assessment
• Section 297 — Certain interests and penalties not to be levied or imposed
• Section 298 — Levy of interest and penalty in certain in cases
• Section 299 — Authority competent to make assessment of block period
• Section 300 — Application of other provisions of Act
• Section 301 — Interpretation