Section 279 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 279 is the power section for reopening a tax year. It lets the Assessing Officer assess or reassess income chargeable to tax that has escaped assessment, or recompute a loss, a depreciation allowance or any other allowance or deduction. This article explains the section as per the Income-tax Act, 2025 as amended by the Finance Act, 2026; later amendments, rules and notifications should be checked separately.
Under section 279(1), where income chargeable to tax has escaped assessment for a tax year (the relevant tax year), the Assessing Officer may assess, reassess or recompute, subject to sections 280 to 286. Under section 279(2) he may also take up any further issue that comes to his notice during these proceedings, even though section 281 was not complied with for that issue. Section 279(3), inserted by the Finance Act, 2026, says who the "Assessing Officer" is for sections 280 and 281: not the National Faceless Assessment Centre or an assessment unit referred to in section 273(3).
Where section 279 sits
Section 279 opens the group of provisions on income escaping assessment in Chapter XVI (Procedure for assessment). It is the power; the conditions for using it are in the sections that follow. Section 280 deals with the notice, section 281 with the procedure the officer must follow before the notice, and section 282 with time limits. The section itself says that "relevant tax year" is used in section 279 and in sections 280 to 286.
You can read our overview of the Chapter in the Chapter XVI guide. If a notice has reached you, our legal dispute resolution service can help you read it against the Act.
Section 279(1): the power to assess or reassess
The sub-section applies "in the case of an assessee" where "any income chargeable to tax has escaped assessment for any tax year". The Act then gives the officer three things he may do for the relevant tax year, subject to sections 280 to 286:
| What the officer may do | Wording of the sub-section |
|---|---|
| Assess or reassess income | "assess or reassess such income" |
| Recompute a loss | "recompute the loss" |
| Recompute allowances | "the depreciation allowance or any other allowance or deduction" |
Three points follow from the text.
- The power is exercised for one tax year at a time, the relevant tax year.
- It is made subject to sections 280 to 286. The section does not by itself allow an assessment; the notice, the procedure and the time limits in those sections must also be met.
- The sub-section speaks of income "chargeable to tax". Income that is exempt from tax or not included in total income is not covered by the words.
The Act does not define "escaped assessment" in this section. What counts as information suggesting escaped income is spelled out in section 280(6); see our article on section 280.
Section 279(2): further issues found during the proceedings
Sub-section (2) deals with what happens once the assessment under sub-section (1) is under way. The Assessing Officer may assess or reassess the income in respect of any issue which has escaped assessment and which "comes to his notice subsequently in the course of the proceedings under this section".
The sub-section adds that this may be done "irrespective of the fact that the provisions of section 281 have not been complied with". In plain words, an issue found during the proceedings does not need its own run through the section 281 procedure. Two limits are visible in the words:
- The issue must come to the officer's notice in the course of proceedings under section 279. The sub-section does not allow the officer to start with an issue he already knew about and skip section 281.
- The exemption is only from section 281. The Act does not say that sections 280, 282 or 286 may be ignored.
Our note on section 281 explains the procedure that precedes the notice.
Section 279(3): which Assessing Officer
Sub-section (3) reads that the "Assessing Officer" for the purposes of sections 280 and 281 "shall mean to be an Assessing Officer other than the National Faceless Assessment Centre or any assessment unit referred to in section 273(3)". Faceless assessment is dealt with in section 273; see section 273 of the Income-tax Act, 2025.
What the Finance Act, 2026 changed
The footnote to section 279(3) in the consolidated Act says the sub-section was inserted by the Finance Act, 2026, w.e.f. 1-4-2026. Sections 279(1) and (2) carry no footnote of their own in the text consulted. Section 280(1)(c), which is the next section, was substituted on the same date, as the next article explains.
Worked example
Rohan Traders, an invented partnership firm, has been assessed for a tax year. The Assessing Officer receives information that income chargeable to tax has escaped assessment for that relevant tax year. All amounts below are assumed.
- Following sections 281 and 280, the officer issues the notice. The assessment is then made under section 279(1).
- While the proceedings run, the officer notices a separate issue, a Rs. 3,00,000 receipt not shown by the firm, that was not in the information he started with.
- Under section 279(2) he may assess that issue in the same proceedings, even though section 281 was not followed for that particular issue.
- If the firm shows that it has an unabsorbed loss for the relevant tax year, section 279(1) lets the officer recompute the loss as part of the same exercise.
The figure of Rs. 3,00,000 is invented for the illustration; the Act prints no amount in this section.
Common mistakes
- Reading section 279 as a notice section. It is the power; the notice is under section 280.
- Overlooking that the power is "subject to" sections 280 to 286.
- Assuming that section 279(2) removes every procedural requirement. It removes only compliance with section 281 for the further issue.
- Forgetting the position in section 279(3): where the officer is the National Faceless Assessment Centre or an assessment unit referred to in section 273(3), that officer is outside the meaning of "Assessing Officer" for sections 280 and 281.
Related provisions
| Provision | Subject |
|---|---|
| Section 280 | Notice where income has escaped assessment |
| Section 281 | Procedure before the notice is issued |
| Section 282 | Time limits for the notice |
| Sections 283 to 285 | Assessment after appeal orders, sanction and other provisions |
| Section 286 | Time limits for completing assessment and reassessment |
For a first look at where unexplained credits and investments are charged, see sections 101 to 103 of the Act.
Need help with a reassessment?
If you have received a notice for a past tax year, the first step is to check which sub-section of sections 279 to 286 it relies on. Our team at TaxClue legal consultation can walk through the notice with you, and the income tax return filing page covers the return you may be asked to furnish.
Key takeaways
- Section 279(1) lets the Assessing Officer assess, reassess or recompute for the relevant tax year, subject to sections 280 to 286.
- Section 279(2) allows a further issue found during the proceedings to be assessed even though section 281 was not followed for it.
- Section 279(3) was inserted by the Finance Act, 2026, w.e.f. 1-4-2026.
- The sub-section carries no time limit and no amount of its own; those are in the sections that follow.
Read next
- Section 280: the reassessment notice
- Section 281: show cause before a reassessment notice
- Section 282: reassessment time limits
- Section 270: processing, intimation and assessment
- Sections 283 to 285: assessment after appeal orders and other provisions
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.