Summary Assessment U/s 143(1)

  1. Summary Assessment is the preliminary checking of the return of income.
  2. An intimation having a comparative income tax computation i.e. as filed by the assessee in income tax return and as computed u/s 143(1) by the Income Tax Department to the assessee.
  3. At this stage no detailed scrutiny of ITR is carried out by the department.
  4. At this stage the income or loss is computed after making the following adjustment ,if any, as under :
    A. Any arithmetical error in the ITR
    B. Any incorrect claim which is apparent from any information in the ITR.
    C. Disallowance of loss claimed, if return of the previous year for which set off loss is claimed was furnished beyond the due date specified under section 139(1)
    D. Disallowance of expenditure indicated in the audit report but not taken in the account in computing of total income in the return.
    E. Disallowance of deduction claimed under section 10AA,80-IA,80-IAB,80-IB,80-IC, 80-ID or section 80-IE, if the return is furnished beyond the due date specified under section 139(1)
    F. Addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return. However no such adjustment shall be made in relation to a return furnished for the Assessment Year 2018-19 and thereafter.
  5. Summary Assessment can be made within a period from one year from the end of the financial year in which the return of income is filed.
  6. No such adjustment shall be made unless an intimation is given to the assessee of such adjustment either in writing or in electronic mode.
  7. Further the response received from the assessee shall be considered before making any adjustment.
  8. In case no response is received within 30 days of the issue of such intimation, such adjustment shall be amde.
  9. The acknowledgement of the return of income shall be deemed to be the intimation in a case where no sum is payable by or refundable to the assessee or where no adjustment is made to the returned income.

Assessment.

143. (1) Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner, namely:—

(a)  the total income or loss shall be computed after making the following adjustments, namely:—

 (i)  any arithmetical error in the return;

(ii)  an incorrect claim, if such incorrect claim is apparent from any information in the return;

[(iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139;

(iv)  disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return;

(v) disallowance of deduction claimed under sections 10AA, 80-IA, 80-IAB, 80-IB, 80-ID or , if the return is furnished beyond the due date specified under sub-section (1) of section 139; or

(vi)  addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return:

Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode:

Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made:]

[Provided also that no adjustment shall be made under sub-clause (vi) in relation to a return furnished for the assessment year commencing on or after the 1st day of April, 2018;]

(b)  the tax [, interest and fee], if any, shall be computed on the basis of the total income computed under clause (a);

(c)  the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax [, interest and fee], if any, computed under clause (b) by any tax deducted at source, any tax collected at source, any advance tax paid, any relief allowable under an agreement under section 90 or section 90A, or any relief allowable under section 91, any rebate allowable under Part A of Chapter VIII, any tax paid on self-assessment and any amount paid otherwise by way of tax [, interest or fee];

(d)  an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and

(e)  the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee:

Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax [, interest or fee] is payable by, or no refund is due to, him:

Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.

Explanation.—For the purposes of this sub-section,—

(a)  “an incorrect claim apparent from any information in the return” shall mean a claim, on the basis of an entry, in the return,—

 (i)  of an item, which is inconsistent with another entry of the same or some other item in such return;

(ii)  in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or

(iii)  in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction;

(b)  the acknowledgement of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a).

(1A) For the purposes of processing of returns under sub-section (1), the Board may make a scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or the refund due to, the assessee as required under the said sub-section.

(1B) Save as otherwise expressly provided, for the purpose of giving effect to the scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification; so, however, that no direction shall be issued after the 31st day of March, 2012.

(1C) Every notification issued under sub-section (1B), along with the scheme made under sub-section (1A), shall, as soon as may be after the notification is issued, be laid before each House of Parliament.

[(1D) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2):

Provided that the provisions of this sub-section shall not apply to any return furnished for the assessment year commencing on or after the 1st day of April, 2017.]

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