Section 292B of the Income Tax Act

Income-tax Act, 2025: s.522

Section 292B of the Income-tax Act, 1961 corresponds to section 522 (Return of income, etc., not to be invalid on certain grounds) of the Income-tax Act, 2025.

Read section 522 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 292B is Commissioner of Customs v. Indian Oil Corporation Ltd. (267 ITR 272), cited in 501 of the 782 judgments on BharatTax that turn on this section.

Leading authorities on Section 292B

Commissioner of Customs v. Indian Oil Corporation Ltd.
267 ITR 272 · 2004 · Supreme Court
501
citing judgments

CBDT and CBEC circulars, along with administrative instructions, are binding on departmental authorities, who must not act in contravention of them. However, these circulars and instructions are not binding on courts or assessees.

PCIT v. Maruti Suzuki India Ltd.
416 ITR 613 · 2019 · Supreme Court
308
citing judgments

A notice issued under section 148 to a non-existent entity, such as an amalgamating company post-merger, is a substantive illegality, rendering assessment proceedings void ab initio. Participation in such proceedings does not estop the assessee from challenging the validity of the notice.

Spice Infotainment Ltd. v. CIT
247 CTR 500 · 2012 · High Court
114
citing judgments

An assessment framed in the name of a company that has ceased to exist due to amalgamation is invalid, even if the amalgamated company participated in the proceedings. Such a defect cannot be cured under section 292B of the Income-tax Act.

247 CTR 500 (Delhi), (c) CIT v. Dimension Apparels (P.) Ltd.
370 ITR 288 · 2015 · High Court
98
citing judgments
Savita Kapila v. ACIT
118 Taxmann.com 46 · 2020 · High Court
98
citing judgments

There is no legal requirement for a legal representative to report an assessee's death to the income tax department; consequently, a reassessment notice issued under Section 148 to a deceased person is invalid as it lacks proper jurisdiction.

PCIT v. Mahagun Realtors Pvt. Ltd.
443 ITR 194 · 2022 · Supreme Court
95
citing judgments

An assessment framed by the Assessing Officer in the name of a defunct transferor company is valid if the assessee failed to intimate the AO about the merger or amalgamation.

PCIT v. Maruti Suzuki India Ltd.
397 ITR 681 · 2017 · High Court
84
citing judgments

For claiming weighted deduction under section 35(2AB), the existence of recognition for a Research and Development (R&D) Centre is relevant, not necessarily the date of approval or recognition.

Saraswati Industrial Syndicate Ltd. v. CIT
186 ITR 278 · 1990 · Supreme Court
79
citing judgments

Upon amalgamation, the amalgamating company ceases to exist in the eyes of the law. Therefore, any assessment or proceeding initiated against a non-existent amalgamating company is invalid as it is no longer considered a 'person' under the Income-tax Act.

Sri Nath Suresh Chand Ram Naresh v. CIT
280 ITR 396 · 2006 · High Court
68
citing judgments

Section 292B of the Income Tax Act applies only to procedural irregularities and cannot cure fundamental jurisdictional defects, such as the non-issue of a mandatory Section 148 notice for reassessment or framing an assessment against a non-existing or dead person.

DCIT v. Sunita Finlease Ltd.
330 ITR 491 · 2011 · High Court
60
citing judgments

CBDT administrative instructions and circulars are binding on income tax authorities and departmental officers, who must follow them during the assessment process and cannot act in contravention, even though these instructions are not binding on courts or assessees.

Judgments on Section 292B

M/S. Philips Electronics Nederland B.V., Kolkata vs. A.C.I.T.(International Taxation), Circle - 2(1), Kolkata

In the result, appeal of the assessee is allowed

ITA 134/KOL/2023[2020-2021]Status: DisposedITAT Kolkata30 Apr 2025AY 2020-2021

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmaआयकर अपील सं/Ita No.134/Kol/2023 (नििाारण वर्ा / Assessment Year : 2020-2021) M/S Philips Electronics Vs Acit(International Taxation), Nederland B.V. Circle-2(1), Kolkata C/O Deloitte Haskins & Sells Llp Bengal Intelligent Park, Building Omega, 13Th& 14Th Floor, Block- Ep & Gp, Sector-V, Salt Lake Electronic Complex, Kolkata- 700091 Pan No. :Aafcp4361F (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररतीकीओरसे /Assessee By : Shri Ketan Ved, Ar राजस्वकीओरसे /Revenue By : Shri Guru Bhashyam, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 06/02/2025 घोषणा की तारीख/Date Of Pronouncement : 30/04/2025 आदेश / O R D E R Per Rajesh Kumar, Am: This Is An Appeal Filed By The Assessee Against The Order Dated 31.12.2022, Passed By The Acit, Circle-2(1), It, Kolkata Giving Effect To The Direction Given By The Dispute Resolution Panel-2, New Delhi(In Short The ‘Drp’), Dated 04.11.2022, Thereby Finalizing The Assessment Order In Accordance With The Provisions Of Section 144C(13) R.W.S. 143(3) Of The Act. 2. At The Outset, Ld. Ar Drew Our Attention To The Additional Ground Filed By The Assessee & Submitted That The Appeal Of The Assessee May Be Decided On The Following Additional Grounds Taken By The Assessee :-

For Appellant: Shri Ketan Ved, ARFor Respondent: Shri Guru Bhashyam, CIT-DR
Section 142(1)Section 143(2)Section 143(3)Section 144CSection 144C(13)Section 156Section 90(2)