Skip to content

CMA Intermediate · Direct and Indirect Taxation · Self-Assessment and Intimation

A firm was refunded Rs 60,000 on an intimation under section 270(1). A later regular assessment under section 270(10) shows a refund due of only Rs 25,000. Which statement is correct under section 270(15)?

The excess refund of Rs 35,000 is deemed to be tax payable by the firm. Section 270(15)(b) treats the amount by which the refund under the intimation exceeds the refund due on regular assessment as tax payable, here 60,000 less 25,000.

  1. AThe excess Rs 35,000 is deemed to be tax payable by the assesseeCorrect
  2. BThe whole Rs 60,000 is deemed to be tax payable
  3. CThe excess is ignored because the intimation is final
  4. DThe excess Rs 35,000 is adjusted only against the next year's refund

Explanation

Section 270(15)(b) says that where the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the excess is deemed to be tax payable by the assessee. Excess = 60,000 - 25,000 = Rs 35,000. The whole Rs 60,000 is wrong because Rs 25,000 is properly refundable. The intimation is not final, since it is superseded by the regular assessment.

Did you get it right without looking?

One question tells you little. A timed set on Self-Assessment and Intimation shows your real accuracy, how long you take and where you lose marks.

Practise Self-Assessment and IntimationFree diagnostic mock

More Self-Assessment and Intimation questions