63[Assessment64.
65143. 66[(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; or
(ii) an incorrect claim, if such incorrect claim
is apparent from any information in the return;
(b) the tax and interest, 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 and
interest, 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 or interest;
(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 or interest 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, 67[2011].
(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.]
68[(2)
Where a return has been furnished under section 139,
or in response to a notice under sub-section (1) of section
142, the Assessing Officer shall,—
(i) where he has reason to believe that any claim
of loss, exemption, deduction, allowance or relief made in the return is
inadmissible, serve on the assessee a notice specifying particulars of such
claim of loss, exemption, deduction, allowance or relief and require him, on a
date to be specified therein to produce, or cause to be produced, any evidence
or particulars specified therein or on which the assessee may rely, in support
of such claim:
69[Provided
that no notice under this clause shall be served on the assessee on or
after the 1st day of June, 2003;]
(ii) notwithstanding anything
contained in clause (i), if he considers it necessary
or expedient to ensure that the assessee has not understated the income or has
not computed excessive loss or has not under-paid the tax in any manner, serve
on the assessee a notice requiring him, on a date to be specified therein,
either to attend his office or to produce, or cause to be produced, any
evidence on which the assessee may rely in support of the return:
70[Provided that no notice under
clause (ii) shall be served on the assessee after the expiry of
six months from the end of the financial year in which the return is
furnished.]]
71[(3) On
the day specified in the notice,—
(i) issued under clause (i) of
sub-section (2), or as soon afterwards as may be, after hearing such evidence
and after taking into account such particulars as the assessee may produce, the
Assessing Officer shall, by an order in writing, allow or reject the claim or
claims specified in such notice and make an assessment determining the total
income or loss accordingly, and determine the sum payable by the assessee on
the basis of such assessment;
(ii) issued under clause (ii) of
sub-section (2), or as soon afterwards as may be, after hearing such evidence
as the assessee may produce and such other evidence as the Assessing Officer
may require on specified points, and after taking into account all relevant
material which he has gathered, the Assessing Officer shall, by an order in
writing, make an assessment of the total income or loss of the assessee, and
determine the sum payable by him or refund of any amount due to him on the
basis of such assessment:]
72[Provided
that in the case of a—
(a) 72a[scientific
research association] referred to in clause (21) of section 10;
(b) news agency referred to in clause (22B) of section 10;
(c) association or institution referred to in
clause (23A) of section 10;
(d) institution referred to in clause (23B) of section 10;
(e) fund or institution referred to in sub-clause
(iv) or trust or institution referred to in sub-clause (v) or any
university or other educational institution referred to in sub-clause (vi) or any
hospital or other medical institution referred to in sub-clause (via) of
clause (23C) of section 10,
which is required to furnish the return of income
under sub-section (4C) of section 139, no order
making an assessment of the total income or loss of such 72a[scientific
research association], news agency, association or institution or fund or
trust or university or other educational institution or any hospital or other
medical institution, shall be made by the Assessing Officer, without giving
effect to the provisions of section 10, unless—
(i) the Assessing Officer has intimated the
Central Government or the prescribed authority the contravention of the
provisions of clause (21) or clause (22B) or
clause (23A) or clause (23B) or
sub-clause (iv) or sub-clause (v) or
sub-clause (vi) or sub-clause (via) of
clause (23C) of section 10, as the
case may be, by such 72a[scientific
research association], news agency, association or institution or fund or
trust or university or other educational institution or any hospital or other
medical institution, where in his view such contravention has taken place; and
(ii) the approval granted to such 72a[scientific
research association] or other association 73[or fund or trust] or institution or
university or other educational institution or hospital or other medical
institution has been withdrawn or notification issued in respect of such news
agency or fund or trust or institution has been rescinded :]
74[Provided
further that where the Assessing Officer is satisfied that the activities
of the university, college or other institution referred to in clause (ii) and
clause (iii) of sub-section (1) of section
35 are not being carried out in accordance with all or any of the
conditions subject to which such university, college or other institution was
approved, he may, after giving a reasonable opportunity of showing cause
against the proposed withdrawal to the concerned university, college or other
institution, recommend to the Central Government to withdraw the approval and
that Government may by order, withdraw the approval and forward a copy of the
order to the concerned university, college or other institution and the
Assessing Officer.]
75[(4) Where a regular assessment
under sub-section (3) of this section or section 144
is made,—
(a) any tax or interest paid by the assessee
under sub-section (1) shall be deemed to have been paid towards such regular
assessment ;
(b) if no refund is due on regular assessment or
the amount refunded under sub-section (1) exceeds the amount refundable on
regular assessment, the whole or the excess amount so refunded shall be deemed
to be tax payable by the assessee and the provisions of this Act shall apply
accordingly.
(5) 76[Omitted by the Finance
Act, 1999, w.e.f. 1-6-1999.]]
77[* * *]