ITR-U Cannot Be Filed After Assessment Is Completed: Understanding Section 139(8A)

Section 139(8A) permits a taxpayer to furnish an updated return for an assessment year even if the taxpayer did not originally file a return, or had filed an original, belated or revised return.

The Finance Act, 2025 extended the general time limit for filing an updated return from 24 months to 48 months from the end of the relevant assessment year, subject to the applicable conditions. The objective is an additional opportunity to voluntarily disclose income and pay the applicable tax and additional tax.

ITR-U is not an unrestricted mechanism for modifying a return after the Income Tax Department has already initiated or completed proceedings for that assessment year.

The third proviso to Section 139(8A) specifies circumstances in which an updated return cannot be furnished. Clause (b) of that proviso provides that an updated return cannot be furnished where any proceeding for assessment, reassessment, recomputation or revision of income under the Act is pending or has been completed for the relevant assessment year in the taxpayer’s case, subject to the specific statutory exception.

1. Assessment proceedings are pending

If assessment or reassessment proceedings are already pending for the relevant assessment year, the taxpayer cannot ordinarily use ITR-U to make a fresh disclosure for that year.

Example: AY 2024-25 is selected for scrutiny, a notice under Section 143(2) is issued, and assessment is underway. If the taxpayer then discovers additional income and tries to file ITR-U for AY 2024-25, Section 139(8A) may prevent that filing because assessment proceedings are already pending.

2. Assessment proceedings have already been completed

The restriction is not limited to pending proceedings. The statute also covers cases where the proceeding “has been completed.”

Once an assessment, reassessment, recomputation or revision proceeding covered by the provision has been completed for that year, the taxpayer cannot ordinarily go back and use ITR-U. The assumption “the assessment is already over, so I can now voluntarily disclose through ITR-U” is the opposite of what the proviso says.

For AY 2024-25, a taxpayer may ordinarily have an extended window under Section 139(8A). But if an assessment proceeding for that year is initiated before ITR-U is filed, the taxpayer cannot simply argue that time remains under the 48-month limit.

The 48-month period is only the outer time limit. The taxpayer must also satisfy the eligibility conditions under Section 139(8A). Time limit plus eligibility conditions equals a valid ITR-U. Both must be satisfied.

If a covered assessment, reassessment, recomputation or revision has already been completed, do not assume ITR-U can still be filed merely because additional income has been discovered, the assessment did not deal with that income, the order has already been received, or the 48-month period has not expired.

The statutory wording refers to proceedings that are pending or have been completed. The appropriate remedy may sit in assessment, rectification, revision or appeal — not in an updated return the proviso has already shut.

The restriction relating to assessment proceedings is in clause (b) of the third proviso. Clause (e) of the same proviso is a different situation: where prosecution proceedings under Chapter XXII have been initiated for the relevant assessment year before the updated return is furnished.

When discussing the inability to file ITR-U because assessment proceedings are pending or completed, the correct statutory reference is Section 139(8A) — third proviso — clause (b), and not clause (e).

Before filing an ITR-U, check more than the due date. A proper eligibility review should include:

• 1Whether an original, belated or revised return was filed.
• 2Whether an ITR-U has already been filed for the assessment year.
• 3Whether assessment proceedings are pending.
• 4Whether any assessment or reassessment proceeding has already been completed.
• 5Whether any recomputation or revision proceeding has been undertaken.
• 6Whether there has been a search or survey triggering the relevant restrictions.
• 7Whether information covered by the specified provisions has already been communicated to the taxpayer.
• 8Whether prosecution proceedings have been initiated (clause (e) — a separate bar).
• 9Whether the proposed ITR-U increases the tax liability as required under the law.
• 10Whether the applicable additional tax and interest have been correctly calculated on the facts of that year.

ITR-U is not simply a return that can be filed anytime within 48 months. Section 139(8A) contains several statutory restrictions. One of the most important is the bar where assessment, reassessment, recomputation or revision proceedings are pending or have been completed for the relevant assessment year, subject to the exceptions in the law.

If an assessment proceeding has already started or has been completed, do not assume ITR-U is still available merely because the 48-month filing window has not expired. The correct statutory reference for this restriction is clause (b) of the third proviso to Section 139(8A).