Section 285: other provisions relating to income escaping assessment

Rate of tax on reassessment

In an assessment, reassessment or recomputation made under section 279, tax is chargeable at the rate or rates that would have applied had the income not escaped assessment in the first place.

Dropping the proceedings

Proceedings initiated under section 279 must be dropped if the assessee makes a claim, and shows, that:

• the assessee had already been assessed at an amount not lower than what he would rightly be liable for even if the allegedly escaped income had been properly taken into account or the assessment/computation had been properly made; and
• the assessee has not challenged any part of the original assessment order for the relevant tax year under section 356, 357 or 378.

No reopening of matters already concluded

Where an assessee makes a claim under sub-section (2) to have the proceedings dropped, he is not entitled to reopen matters already concluded by an order under section 287, 288, 365(10), 368 or 377.

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