GOVERNMENT OF INDIA<\/strong>
DEPARTMENT OF REVENUE<\/strong>
\nCENTRAL BOARD OF
\nDIRECT TAXES<\/strong>
\nNEW DELHI<\/strong><\/strong><\/p>\n

INSTRUCTION
\nNO 01\/2015,<\/strong><\/p>\n

<\/strong><\/p>\n

Dated: January 13, 2015<\/strong><\/p>\n

Subject: – Clarification regarding applicability of section
\n143(1D) of the Income-tax Act, 1961 – reg.<\/strong><\/p>\n

Sub-section (1D) of section 143 of the Income-tax Act, 1961
\n(‘Act’) provides that where a notice has been issued to a taxpayer under
\nsub-section (2) of section 143 of the Act, it shall not be necessary to process
\nthe return in such a case.<\/p>\n

2. Some doubts have been expressed, in view of the words “shall
\nnot be necessary”<\/em> used
\nin the said sub-section, as to whether this provision permits processing of
\nreturns having a refund claim, where notice under section 143(2) of the Act has
\nbeen issued.<\/p>\n

3. The matter has been examined by the Board. Sub-section (1D) of
\nsection 143 of the Act was introduced by the Finance Act, 2012 with effect from
\n01.07.2012. The purpose of introduction of this sub-section has been stated in
\nthe Explanatory Note to the Finance Act as under:<\/p>\n

“Under
\nthe existing provisions, every return of income is to be processed under
\nsub-section (1) of section 143 and refund, if any, due is to be issued to the
\ntaxpayer. Some returns of income are also selected for scrutiny which may lead
\nto raising a demand for taxes although refunds may have been issued earlier at
\nthe time of processing.<\/p>\n

It
\nis therefore proposed to amend the provisions of the Income-tax Act to provide
\nthat processing of return will not be necessary in a case where notice under
\nsub-section (2) of section 143 has already been issued for scrutiny of the
\nreturn.’<\/em><\/p>\n

Thus, in cases where an unprocessed return is selected for
\nscrutiny, the legislative intent is to prevent the issue of refund after
\nprocessing as scrutiny proceedings may result in demand for taxes on finalization
\nof the assessment subsequently.<\/p>\n

4. Considering the unambiguous language of the relevant provision
\nand the intention of law as discussed above, the Central Board of Direct Taxes,
\nin exercise of the powers conferred on it under section 119 of the Act hereby
\nclarifies that the processing of a return cannot be undertaken after notice has
\nbeen issued under sub-section (2) of section 143 of the Act. It shall, however,
\nbe desirable that scrutiny assessments in such cases are completed
\nexpeditiously.<\/p>\n

5. This may be brought to the notice of all concerned for strict
\ncompliance.<\/p>\n

6. Hindi version to follow.<\/p>\n

(F.No.225\/319\/2014-ITA.II)<\/strong><\/p>\n

(Rohit Garg)<\/strong>
\nDeputy Secretary to
\nthe Government of India<\/strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

GOVERNMENT OF INDIADEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NEW DELHI INSTRUCTION NO 01\/2015, Dated: January 13, 2015 Subject: – Clarification regarding applicability of section 143(1D) of the Income-tax Act, 1961 – reg. Sub-section (1D) of section 143 of the Income-tax Act, 1961 (‘Act’) provides that where a notice has been issued to a … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4],"tags":[26],"class_list":["post-1463","post","type-post","status-publish","format-standard","hentry","category-income-tax","tag-income-tax"],"yoast_head":"\n