CBDT has issued Corrigendum dated February 06, 2023 to Circular No. 23 of 2022 dated November 03, 2022 on the Explanatory Notes to the Finance Act 2022 regarding the amendments made in direct tax laws vide Finance Act, 2022
The Finance Act, 2022 as passed by the Parliament, received the assent of the President on March 30, 2022 and has been enacted as Act No. 6 of 2022. The Explanatory notes to the Finance Act, 2022, explaining the amendments made in direct tax laws vide the Finance Act, 2022 were issued vide Circular no. 23 of 2022 dated November 03, 2022. In the said circular, in sub-point (iii) of the point (I) of sub-paragraph (A) of paragraph 28.5, the words "two assessment years preceding such assessment year" shall be read as "any assessment year preceding such assessment year".
"28.5 Through this provision, taxpayers are given some more time under the Act to file particulars of their income for a previous year in an updated return. A payment of additional tax by persons opting to furnish their returns in the newly provided timelines is also required. An amount equal to twenty five percent or fifty percent as additional tax on the tax and interest due on the additional income furnished would be required to be paid. The following amendments to the Act are introduced for incorporating the above provisions:
A. A new sub-section (8A) in section 139 has been introduced to provide for furnishing of updated return under the new provisions.
![CBDT issued corrigendum explaining amendments made in direct tax laws vide Finance Act 2022 CBDT issued corrigendum explaining amendments made in direct tax laws vide Finance Act 2022](/img/preview/custom/20210227060400_format.jpg?imgver=22046)
I. in section 139, ––
(a) insertion of sub-section (8A) in section 139 of the Act to provide that: (i) any person, whether or not he has furnished a return under sub-section (1), sub-section (4) or sub-section (5), for an assessment year (herein referred to as the relevant assessment year), may furnish an updated return of his income or the income of any other person in respect of which he is assessable under the Act, for the previous year relevant to such assessment year, within twenty-four months from the end of the assessment year. Such return shall be furnished in the prescribed form and manner and shall contain prescribed particulars.
Accordingly, vide Notification no. 48/2022 (GSR 325E) dated 29.04.2022, Rule 12AC has been introduced in the Income-tax Rules prescribing the form ITR-U and the manner in which Updated return shall be furnished.
(ii) this sub-section (8A) of section 139 shall not apply, if the updated return, is a return of a loss or has the effect of decreasing the total tax liability determined on the basis of return furnished under sub-section (1), sub-section (4) or sub-section (5) or results in refund or increases the refund due on the basis of return furnished under sub-section (1), subsection (4) or sub-section (5), of such person under the Act for the relevant assessment year.
(iii) A person shall not be eligible to furnish an updated return under sub-section (8A) of section 139, if: ––
(a) search has been initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of such person, or
(b) a survey has been conducted under section 133A, other than sub-section (2A) of that section, in the case such person, or
(c) a notice has been issued to the effect that any money, bullion, jewellery or valuable article or thing, seized or requisitioned under section 132 or section 132A in the case of any other person belongs to such person, or
(d) a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person, pertain or pertains to, or any other information contained therein, relate to, such person, for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and two assessment years preceding such assessment year "any assessment year preceding such assessment year".
(iv) also, no updated return shall be furnished by any person for the relevant assessment year, where,
(a) an updated return has been furnished by him under sub-section (8A) of section 139 of the Act for that relevant assessment year, or
(b) any proceeding for assessment or reassessment or re-computation or revision of income under the Act is pending or has been completed for the relevant assessment year in his case, or
(c) the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Prevention of Money Laundering Act, 2002 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 or the Prohibition of Benami Property Transactions Act, 1988 or the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 and the same has been communicated to him, prior to the date of his filing of return under the proposed subsection (8A) of section 139 of the Act, or
(d) information for the relevant assessment has been received under an agreement referred to in sections 90 or 90A of the Act in respect of such person and the same has been communicated to him, prior to the date of his filing of return under sub-section (8A) of section 139 of the Act, or
(e) any prosecution proceedings under Chapter XXII of the Act have been initiated for the relevant assessment year in respect of such person, prior to the date of his filing of return under sub-section(8A) of section 139 of the Act, or
(f) he is a person or belongs to a class of persons, as maybe notified by the Board in this regard.
(v) if any person has sustained a loss in any previous year and has furnished a return of loss under sub-section (1) of section 139 of the Act and verified it in the prescribed manner, he shall be allowed to furnish an updated return where it is a return of income.
(vi) if the loss or any part thereof carried forward under Chapter VI or unabsorbed depreciation carried forward under sub-section (2) of section 32 or tax credit carried forward under section 115JAA or under section 115JD is to be reduced for any subsequent previous year as a result of furnishing updated return for a previous year, an updated return is required to be furnished for each such subsequent previous year.
(b) Sub-section (9) of section 139 provides that a return filed under sub-section (8A) of the said section 139 shall be defective unless such return is accompanied by the proof of payment of tax as required under the new section 140B."
The Corrigendum can be accessed here