Note on Income-tax (Eleventh Amendment) Rules, 2022.

Department : Income Tax

Notification reference : Notification No. 48/2022

Notification Date : 29^th April, 2022

INTRODUCTION :

The Income Tax Department inserted a new rule named 12AC (updated return of Income) and notified a new form “ITR-U” for Assessment Year 2020-2021 and subsequent assessment year(s).

By the insertion of the new rule 12AC, the assesses can now file an updated return for the A.Y.2020-21 and A.Y.2021-22. The updated return can be filed within twenty four months from the end of the relevant assessment year for e.g., for the A.Y. 2020-21 the updated return can be filed on or before 31^st March, 2023.

ANALYSIS OF NOTIFICATION NO.48/2022 AND SECTION 139(8A) :

1. As provided in Section 139(8A) the updated return cannot be filed in the following cases :
   1. i For the relevant assessment year, if :
      1. a. The updated return is a return of loss
         b. The updated return has the effect of decreasing the total tax liability determined in the return furnished under sub-section 1 or 4 or 5 of Section 139 which is filed earlier.
      2. c. The updated return results in refund or increases the refund due determined in the return furnished under sub-section 1 or 4 or 5 of Section 139 which is filed earlier
      3. d. The updated return has been furnished by him under this sub-section for the relevant assessment year;
      4. e. Any proceeding for assessment or reassessment or recomputation or revision of income under this Act is pending or has been completed for the relevant assessment year.
      5. f. the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 or the Prohibition of Benami Property Transactions Act, 1988 or the Prevention of Money-laundering Act, 2002 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and the same has been communicated to him, prior to the date of furnishing of the updated return.
      6. g. information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him, prior to the date of furnishing of the updated return.
      7. h. any prosecution proceedings under the Chapter XXII have been initiated for the relevant assessment year in respect of such person, prior to the date of furnishing of the updated return.
   2. ii The following persons are not eligible to file the updated return 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 :
      1. a. a search has been initiated under section 132 or books of account or other documents or any assets are requisitioned under section 132A in the case of such person(s).
         b. a survey has been conducted under section 133A, other than sub-section (2A) of that section in the case of such person(s)
         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
      2. 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.
   3. The updated return can be furnished in the following manner :

The online facility for the filing of the Form ITR-U has not been enabled as on 03/05/2022.