Central Board of Direct Taxes (CBDT) has issued a Corrigendum to its Circular on Explanatory Notes to the Finance Act, 2022. This Circular was issued on 6th February, 2023.
It may be recalled that the CBDT had issued a Circular dated 03.11.2022 putting forth the Explanatory notes to the Finance Act, 2022. These explanatory notes explained the amendments made in direct tax laws vide the Finance Act, 2022.
As per this explanatory note issued on 3rd November, 2022, a person shall not be eligible to furnish an updated return under sub-section (8A) of section 139, if inter alia, a notice has been issued to the effect that any books of account or documents, seized or requisitioned under section 132 or section 132A in the case of any other person pertains to such person, for the assessment year relevant to the previous year in which such search is initiated or survey is conducted or requisition is made and two assessment years preceding such assessment year.
This cap of two preceding assessment years has been removed and now can be extended to any assessment year preceding such assessment year.