New Provision
Section 323, IT Act 2025
Replaces (IT Act 1961)
449 179
Chapter
Chapter XVI — Appeals and Revision
Effective From
1 April 2026
Statutory Text — Section 323
rrespective of anything contained in the Companies Act, 2013, where any tax due from— (a) a private company in respect of any income of any tax year; or (b) any other company in respect of any income of any tax year during which such other company was a private company, cannot be recovered, then, every person, who was a director of the private company at any time during the relevant tax year, shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (2) For the purposes of this section, “tax due” includes penalty, interest, fees or any other sum payable under the Act.
Income–tax Act, 2025 [Sec 302-355] 14. —Assessment of firms
Shahi & Co. — Our Understanding
This section falls under Chapter XVI which governs appeals and revision — your right to challenge an assessment order before the Commissioner (Appeals), ITAT, High Court, and Supreme Court.
Practical Note: If you receive an adverse assessment order, the appeal must be filed within the prescribed time limit. Delay in filing appeals is a common compliance failure that results in forfeiture of the right to appeal.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 323 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.