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CS Professional · Advanced Direct Tax Laws and Practice · Assessment

An intimation under section 270(1) refunded ₹80,000 to an assessee. On regular assessment under section 270(10), the refund due is determined at ₹50,000. What is the treatment under section 270(15) of the Income-tax Act, 2025?

The excess refund of ₹30,000, being ₹80,000 granted less ₹50,000 refundable on regular assessment, is deemed to be tax payable by the assessee. Only the excess, not the whole refund, becomes payable.

  1. AThe excess ₹30,000 is deemed to be tax payable by the assesseeCorrect
  2. BThe whole ₹80,000 is deemed tax payable
  3. CThe excess ₹30,000 is ignored as a processing error
  4. DThe intimation is void and the whole refund must be re-granted

Explanation

Section 270(15)(b) says that where the amount refunded at processing exceeds the amount refundable on regular assessment, the excess is deemed tax payable. Excess = 80,000 − 50,000 = ₹30,000. The ₹80,000 option wrongly treats the whole refund as recoverable.

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