Section 28 - Amendment of section 16 - Direct Tax Laws (Second Amendment) Act, 1989

28. Amendment of section 16. In section 16 of the Wealth-lax Act, the following amendments shall be made and shall be deemed to have been made will 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), atter the words an order made under , the words, brackets and figures sub-section (3) or sub-section (5) of this section or shall be inserted, (b) in sub-section (1A), in clause (a), 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 14 or section 15, or in response to a notice under clause (2) of sub-section (4) of this section, 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 (5), the following sub-sections shall be inserted, namely :- (6) Where a regular assessment under sub-section (3) or sub-section (5) 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. - (7) 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 for the time being in force and applicable to the relevant assessment year. .