Income Tax Act, 2025
Section 2: Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 11988).
2. Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 11988).
3. Subs. by s. 126, ibid., for “as a return under sub-section (2) of section 139” (w.e.f. 11989).
4. Subs. by s. 126, ibid., for “a notice issued under sub-section (2) of section 139” (w.e.f. 11989).
5. Subs. by s. 126, ibid., for “sub-section (2) of section 139 or sub-section (1) of” (w.e.f. 11989).
626
1[JA.—Association of persons or body of individuals or
artificial juridical person formed for a particular event or purpose
174A. Assessment of association of persons or body of individuals or artificial juridical person
formed for a particular event or purpose.—Notwithstanding anything contained in section 4, where it
appears to the Assessing Officer that any association of persons or a body of individuals or an artificial
juridical person, formed or established or incorporated for a particular event or purpose is likely to be
dissolved in the assessment year in which such association of persons or a body of individuals or an
artificial juridical person was formed or established or incorporated or immediately after such assessment
year, the total income of such association or body or juridical person for the period from the expiry of the
previous year for that assessment year up to the date of its dissolution shall be chargeable to tax in that
assessment year, and the provisions of sub-sections (2) to (6) of section 174 shall, so far as may be, apply
to any proceedings in the case of any such person as they apply in the case of persons leaving India.]
K.—Persons trying to alienate their assets
175. Assessment of persons likely to transfer property to avoid tax.—Notwithstanding anything
contained in section 4, if it appears to the 2[Assessing Officer] during any current assessment year that
any person is likely to charge, sell, transfer, dispose of or otherwise part with any of his assets with a view
to avoiding payment of any liability under the provisions of this Act, the total income of such person for
the period from the expiry of the previous year for that assessment year to the date when the
2[AssessingOfficer] commences proceedings under this section shall be chargeable to tax in that
assessment year, and the provisions of sub-sections (2), (3), (4), (5) and (6) of section 174 shall, so far as
may be, apply to any proceedings in the case of any such person as they apply in the case of persons
leaving India
L.—Discontinuance of business, or dissolution
176. Discontinued business.—(1) Notwithstanding anything contained in section 4, where any
business or profession is discontinued in any assessment year, the income of the period from the expiry of
the previous year for that assessment year up to the date of such discontinuance may, at the discretion of
the 2[Assessing Officer], be charged to tax in that assessment year.
(2) The total income of each completed previous year or part of any previous year included in such
period shall be chargeable to tax at the rate or rates in force in that assessment year, and separate
assessments shall be made in respect of each such completed previous year or part of any previous year.
(3) Any person discontinuing any business or profession shall give to the 2[Assessing Officer] notice
of such discontinuance within fifteen days thereof.
3[(3A) Where any business is discontinued in any year, any sum received after the discontinuance
shall be deemed to be the income of the recipient and charged to tax accordingly in the year of receipt, if
such sum would have been included in the total income of the person who carried on the business had
such sum been received before such discontinuance.]
(4) Where any profession is discontinued in any year on account of the cessation of the profession by,
or the retirement or death of, the person carrying on the profession, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged to tax accordingly in the
year of receipt, if such sum would have been included in the total income of the aforesaid person had it
been received before such discontinuance.
of section 139” (w.e.f. 11989).
4. Subs. by s. 126, ibid., for “a notice issued under sub-section
of section 139” (w.e.f. 11989).
5. Subs. by s. 126, ibid., for “sub-section
of section 139 or sub-section
of” (w.e.f. 11989).
626
1[JA.—Association of persons or body of individuals or
artificial juridical person formed for a particular event or purpose
174A. Assessment of association of persons or body of individuals or artificial juridical person
formed for a particular event or purpose.—Notwithstanding anything contained in section 4, where it
appears to the Assessing Officer that any association of persons or a body of individuals or an artificial
juridical person, formed or established or incorporated for a particular event or purpose is likely to be
dissolved in the assessment year in which such association of persons or a body of individuals or an
artificial juridical person was formed or established or incorporated or immediately after such assessment
year, the total income of such association or body or juridical person for the period from the expiry of the
previous year for that assessment year up to the date of its dissolution shall be chargeable to tax in that
assessment year, and the provisions of sub-sections
to
of section 174 shall, so far as may be, apply
to any proceedings in the case of any such person as they apply in the case of persons leaving India.]
K.—Persons trying to alienate their assets
175. Assessment of persons likely to transfer property to avoid tax.—Notwithstanding anything
contained in section 4, if it appears to the 2[Assessing Officer] during any current assessment year that
any person is likely to charge, sell, transfer, dispose of or otherwise part with any of his assets with a view
to avoiding payment of any liability under the provisions of this Act, the total income of such person for
the period from the expiry of the previous year for that assessment year to the date when the
2[AssessingOfficer] commences proceedings under this section shall be chargeable to tax in that
assessment year, and the provisions of sub-sections
and
of section 174 shall, so far as
may be, apply to any proceedings in the case of any such person as they apply in the case of persons
leaving India
L.—Discontinuance of business, or dissolution
176. Discontinued business.—
Notwithstanding anything contained in section 4, where any
business or profession is discontinued in any assessment year, the income of the period from the expiry of
the previous year for that assessment year up to the date of such discontinuance may, at the discretion of
the 2[Assessing Officer], be charged to tax in that assessment year.
The total income of each completed previous year or part of any previous year included in such
period shall be chargeable to tax at the rate or rates in force in that assessment year, and separate
assessments shall be made in respect of each such completed previous year or part of any previous year.
Any person discontinuing any business or profession shall give to the 2[Assessing Officer] notice
of such discontinuance within fifteen days thereof.
3[
Where any business is discontinued in any year, any sum received after the discontinuance
shall be deemed to be the income of the recipient and charged to tax accordingly in the year of receipt, if
such sum would have been included in the total income of the person who carried on the business had
such sum been received before such discontinuance.]
Where any profession is discontinued in any year on account of the cessation of the profession by,
or the retirement or death of, the person carrying on the profession, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged to tax accordingly in the
year of receipt, if such sum would have been included in the total income of the aforesaid person had it
been received before such discontinuance.