Section 16 - Amendment of section 143 - Direct Tax Laws (Second Amendment) Act, 1989

16. Amendment of section 143. In section 143 of the Income-tax Act, the following amendments shall be made and shall be deemed to have been made with effect from the 1st day of April, 1989, namely :- (a) in sub-section (1),- (i) in clause (a), - (1) after the first proviso, the following proviso shall be inserted, namely :- Provided further that where adjustments are made under the first proviso, an intimation shall be sent to the assessee, notwithstanding that no tax or interest is found due from him after making the said adjustments: ; (2) in the existing second proviso, for the words Provided further , the words Provided also shall be substituted; (ii) in clause (b), after the words an order made under , the words, brackets and figures sub-section (3) of this section or section 144 or shall be inserted; (iii) after clause (b), the following clause shall be inserted, namely :- (c) Where the assessee is a partner of a firm or a member of an association of persons or body of individuals and as a result of the adjustments made under the first proviso to clause (a) of sub-section (1) in the income or loss declared in the return made by the firm, association or body, as the case may be, or as a result of an order made under sub-section (3) of this section or section 144 or section 147 or section 154 or section 155 or sub-section (1) or sub-section (2) or sub- section (3) or sub-section (5) of section 185 or sub-section (1) or sub-section (2) of section 186 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, or any order of settlement made under sub-section (4) of section 245D, passed subsequent to the filing of the return referred to in clause (a), there is any variation in his share in the income or loss of the firm, association or body, as the case may be, or in the manner of inclusion of his share in the returned income, then,- (i) if any tax or interest is found due, an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly, and (ii) if any refund is due, it shall be granted to the assessee: Provided that an intimation for any tax or interest due under this clause shall not be sent after the expiry of four years from the end of the financial year in which any such adjustments were made or any such order was passed. ; (b) in sub-section (1A),- (i) in clause (a), for the words the proviso , the words the first proviso shall be substituted; (ii) in the Explanation, in clause (i), for the words the proviso , the words the first proviso shall be substituted; (c) in sub-section (2),- (i) in the opening portion, for the words, brackets and figure In a case referred to in sub-section (1), if the Assessing Officer , the words, figures and brackets Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer shall, if he shall be substituted; (ii) for the words he shall serve on the assessee , the words serve on the assessee shall be substituted; (d) after sub-section (3), the following sub-sections shall be inserted, namely :- (4) Where a regular assessment under sub-section (3) of this section or section 144 is made,- (a) any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment; (b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly. (5) The provisions of this section as they stood immediately before their amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply to and in relation to any assessment for the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year and references in this section to the other provisions of this Act shall be construed as references to those provisions as for the time being in force and applicable to the relevant assessment year. .