Income Tax Act, 2025
Section 13: Sub-section (2) omitted by Act 4 of 1988, s. 50 (w.e.f. 11989).
13. Sub-section (2) omitted by Act 4 of 1988, s. 50 (w.e.f. 11989).
579
[144B. Reference to Deputy Commissioner in certain cases].—Omitted by the Direct Tax Laws
(Amendment) Act, 1987 (4 of 1988), s. 51 (w.e.f. 11989).]]
1[144BA. Reference to 2[Principal Commissioner orCommissioner] in certain cases.—(1) If, the
Assessing Officer, at any stage of the assessment or reassessment proceedings before him having regard
to the material and evidence available, considers that it is necessary to declare an arrangement as an
impermissible avoidance arrangement and to determine the consequence of such an arrangement within
the meaning of Chapter X-A, then, he may make a reference to the 2[Principal Commissioner
or Commissioner] in this regard.
(2) The 2[Principal Commissioner or Commissioner] shall, on receipt of a reference under sub-section
(1), if he is of the opinion that the provisions of Chapter X-A are required to be invoked, issue a notice to
the assessee, setting out the reasons and basis of such opinion, for submitting objections, if any, and
providing an opportunity of being heard to the assessee within such period, not exceeding sixty days, as
may be specified in the notice.
(3) If the assessee does not furnish any objection to the notice within the time specified in the notice
issued under sub-section (2), the 2[Principal Commissioner or Commissioner] shall issue such directions
as he deems fit in respect of declaration of the arrangement to be an impermissible avoidance
arrangement.
(4) In case the assessee objects to the proposed action, and the 2[Principal Commissioner
or Commissioner] after hearing the assessee in the matter is not satisfied by the explanation of the
assessee, then, he shall make a reference in the matter to the Approving Panel for the purpose of
declaration of the arrangement as an impermissible avoidance arrangement.
(5) If the 2[Principal Commissioner or Commissioner] is satisfied, after having heard the assessee that
the provisions of Chapter X-A are not to be invoked, he shall by an order in writing, communicate the
same to the Assessing Officer with a copy to the assessee.
(6) The Approving Panel, on receipt of a reference from the 2[Principal Commissioner
or Commissioner] under sub-section (4), shall issue such directions, as it deems fit, in respect of the
declaration of the arrangement as an impermissible avoidance arrangement in accordance with the
provisions of Chapter X-A including specifying of the previous year or years to which such declaration of
an arrangement as an impermissible avoidance arrangement shall apply.
(7) No direction under sub-section (6) shall be issued unless an opportunity of being heard is given to
the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the
assessee or the interests of the revenue, as the case may be.
(8) The Approving Panel may, before issuing any direction under sub-section (6),—
(i) if it is of the opinion that any further inquiry in the matter is necessary, direct the 2[Principal
Commissioner or Commissioner] to make such inquiry or cause the inquiry to be made by any other
income-tax authority and furnish a report containing the result of such inquiry to it; or
(ii) call for and examine such records relating to the matter as it deems fit; or
(iii) require the assessee to furnish such documents and evidence as it may direct.
(9) If the members of the Approving Panel differ in opinion on any point, such point shall be decided
according to the opinion of the majority of the members.
(10) The Assessing Officer, on receipt of directions of the 2[Principal Commissioner
or Commissioner] under sub-section (3) or of the Approving Panel under sub-section (6), shall proceed to
complete the proceedings referred to in sub-section (1)in accordance with such directions and the
provisions of Chapter X-A.
1. Ins. by Act 17 of 2013, s. 39 (w.e.f. 12016). Earlier s. 144BA omitted by Act 17 of 2013, s. 38 (w.e.f. 12014) which
was inserted by Act 23 of 2012, s. 62 (w.e.f. 12014).
omitted by Act 4 of 1988, s. 50 (w.e.f. 11989).
579
[144B. Reference to Deputy Commissioner in certain cases].—Omitted by the Direct Tax Laws
Act, 1987 (4 of 1988), s. 51 (w.e.f. 11989).]]
1[144BA. Reference to 2[Principal Commissioner orCommissioner] in certain cases.—
If, the
Assessing Officer, at any stage of the assessment or reassessment proceedings before him having regard
to the material and evidence available, considers that it is necessary to declare an arrangement as an
impermissible avoidance arrangement and to determine the consequence of such an arrangement within
the meaning of Chapter X-A, then, he may make a reference to the 2[Principal Commissioner
or Commissioner] in this regard.
The 2[Principal Commissioner or Commissioner] shall, on receipt of a reference under sub-section
If the assessee does not furnish any objection to the notice within the time specified in the notice
issued under sub-section
In case the assessee objects to the proposed action, and the 2[Principal Commissioner
or Commissioner] after hearing the assessee in the matter is not satisfied by the explanation of the
assessee, then, he shall make a reference in the matter to the Approving Panel for the purpose of
declaration of the arrangement as an impermissible avoidance arrangement.
If the 2[Principal Commissioner or Commissioner] is satisfied, after having heard the assessee that
the provisions of Chapter X-A are not to be invoked, he shall by an order in writing, communicate the
same to the Assessing Officer with a copy to the assessee.
The Approving Panel, on receipt of a reference from the 2[Principal Commissioner
or Commissioner] under sub-section
No direction under sub-section
shall be issued unless an opportunity of being heard is given to
the assessee and the Assessing Officer on such directions which are prejudicial to the interest of the
assessee or the interests of the revenue, as the case may be.
The Approving Panel may, before issuing any direction under sub-section
if it is of the opinion that any further inquiry in the matter is necessary, direct the 2[Principal
Commissioner or Commissioner] to make such inquiry or cause the inquiry to be made by any other
income-tax authority and furnish a report containing the result of such inquiry to it; or
call for and examine such records relating to the matter as it deems fit; or
require the assessee to furnish such documents and evidence as it may direct.
If the members of the Approving Panel differ in opinion on any point, such point shall be decided
according to the opinion of the majority of the members.
The Assessing Officer, on receipt of directions of the 2[Principal Commissioner
or Commissioner] under sub-section
or of the Approving Panel under sub-section