# The Finance Act, 2026, Section 107: Amendment of section 471

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/107/

## Text

Amendment of section 471. 107. In section 471 of the Income-tax Act,— (a) | in sub-section (1), after the words "reasonable opportunity of being heard", the words "by way of a show cause notice to that effect" shall be inserted; (b) | after sub-section (5), the following sub-sections shall be inserted, namely:— "(4) Irrespective of anything contained in any other provision of this Act, where any draft of the proposed order of assessment under section 275 or assessment under section 270 or reassessment under section 279 is made on or after the 1st April, 2027,— (a) | penalty under section 439, if any, shall constitute part of such draft assessment or shall be imposed as a part of such order of assessment or reassessment, as the case may be; and (b) | the reference to the assessment order or the penalty order under section 439 in any of the provisions of this Act shall take reference to such order of assessment or reassessment, as the case may be. (5) Where the approval of the Joint Commissioner is taken for passing of an order of assessment or reassessment on or after the 1st April, 2027, such approval shall also be deemed to be the approval for the imposition of penalty under section 439, if any, constituting part of such order of assessment or reassessment.".

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