Chapter XX - Refunds
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.
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This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Introduction
A refund claim under this Chapter is not a way to reopen an assessment or another decided matter that has become final and conclusive.
Section 436 limits the relief on that claim to refund of tax wrongly paid or paid in excess. The distinct question whether the underlying assessment can be challenged must be considered through the applicable remedy.
Key takeaways
No collateral assessment review
Correctness of a final and conclusive assessment or other decided matter cannot be questioned through the refund claim.
Relief is limited
The claim can give a refund of tax wrongly paid or paid in excess.
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.
Applying Section 436 in practice
Boundary. A refund claim is not a second appeal against an assessment or another matter already final and conclusive. The taxpayer may seek refund of tax wrongly paid or paid in excess within the Chapter, but cannot use this route to demand review of the final assessment itself.
Hypothetical example
If a final order decides a deduction against the taxpayer, repeating the deduction in a refund request does not reopen that decision.
Step-by-step flow for applying the bar in Section 436
- 1
Is the issue raised in a claim under the refund Chapter?
- No: Section 436 does not apply.
- Yes: Go to the next step.
- 2
Does the claim question an assessment or other matter decided that has become final and conclusive, or seek its review?
- Yes: That part of the claim is not open to the assessee. Go to the next step for the rest of the claim.
- No: Go to the next step.
- 3
Is the relief sought a refund of tax wrongly paid or paid in excess?
- Yes: That relief can be considered in the claim. Go to the next step.
- No: Section 436 bars any other relief on the claim.
- 4
Separate the parts of a mixed claim
Where one claim combines a challenge to a final assessment with a genuine excess payment, only the refund of tax wrongly paid or paid in excess is within the relief Section 436 allows.
Practical checklist
Do
- Separate the amount-overpayment question from any challenge to a final assessment.
- Identify the applicable challenge route and its deadline if the assessment itself is disputed.
- identify the final order, its appeal or rectification history, and the particular payment alleged to be excessive.
Avoid
- Do not frame a refund claim as a request to review a final and conclusive assessment.
Illustrative example
Worked example: a refund claim that also attacks a final assessment
Hypothetical facts (illustration only, not a real taxpayer): Gamma LLP's assessment for a tax year included an addition that it did not challenge, and the assessment has become final and conclusive. Separately, it paid an assumed ₹30,000 of tax twice for the same demand. In its refund claim it asks for both the ₹30,000 and a review of the addition.
Nature of the claim
This is a claim under the refund Chapter, so Section 436 applies.
Challenge to the addition
Questioning the correctness of the final assessment or asking for its review is not open to Gamma in this claim.
Duplicate payment
The second ₹30,000 is tax paid in excess, which is the kind of relief the section allows.
Result
Only the excess payment is considered in the refund claim.
Outcome
- The ₹30,000 duplicate payment can be refunded, subject to the Assessing Officer being satisfied of the excess.
- The addition in the final assessment cannot be reopened through the 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.
What relief can I actually get through a refund claim?
Only a refund of tax that was wrongly paid or paid in excess - no other relief is available under a Chapter XX refund claim.
Does section 436 eliminate every appeal right?
No; it limits what can be questioned *in a refund claim*.
Need help applying this provision to your situation?
Talk to our tax team about your assessment or refund claimLast updated 10 October 2026