§ 435
Chapter XX — Refunds
Refund on appeal, etc
Income-tax Act, 2025
If a tax refund becomes payable because of an order in an appeal or other proceeding, the Assessing Officer must refund the amount automatically, without the taxpayer needing to claim it.
However, if the order sets aside or cancels the original assessment and directs a fresh assessment, the refund is payable only after that new assessment is completed. If the assessment is annulled, a refund is due only for any tax paid in excess of the tax that would be chargeable on the income the taxpayer returns.
📜 Official text of the section +
435. (1) Where, as a result of any order passed in appeal or other proceeding
under this Act, refund of any amount becomes due to the assessee, the As -
sessing Officer shall, except as otherwise provided in this Act, refund the amount
to the assessee without his having to make any claim in that behalf.
(2) Where, by the order as referred to in sub-section (1),—
( a) an assessment is set aside or cancelled and an order of fresh assessment
is directed to be made, the refund, if any, shall become due only on the
making of such fresh assessment;
( b) the assessment is annulled, the refund shall become due only of the
amount, if any, of the tax paid in excess of the tax chargeable on the total
income returned by the assessee.
Correctness of assessment not to be questioned.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.