Section 436

Section 436: correctness of assessment not to be questioned

Section 436 sits at the start of Chapter XX (Refunds) and draws a firm boundary around what a refund claim can and cannot achieve. It makes clear that a refund claim is not a backdoor way to reopen a final assessment - it only exists to recover tax that was wrongly paid or paid in excess.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

What Section 436 says

"In a claim under this Chapter, it shall not be open to the assessee to question the correctness of any assessment, or other matter decided which has become final and conclusive, or ask for a review of the aforesaid assessment or matter; and the assessee shall not be entitled to any relief on such claim except refund of tax wrongly paid or paid in excess."

What this means in practice

If an assessment, or any other matter connected with it, has already become final and conclusive, an assessee cannot use a refund claim under Chapter XX as a way to question its correctness or seek a review of it.

The only relief a refund claim can deliver is a refund of tax that was wrongly paid or paid in excess - disputes about the correctness of the underlying assessment must be pursued through the Act's regular appeal or revision channels, not through a refund claim.

Frequently asked questions

Can I use a refund claim to reopen a finalised assessment?

No. Section 436 specifically bars questioning the correctness of, or seeking a review of, any assessment or other matter that has become final and conclusive, when making a claim under the Refunds chapter.