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CA Final · Direct Tax Laws & International Taxation · Assessment of Various Entities

Kaveri Industries filed its return for the tax year on 31 October 2026, which is within financial year 2026-27. The Assessing Officer wants to issue a notice under section 270(8) requiring production of evidence to check for understatement of income. What is the latest date by which such notice can be served, and what is the latest date for sending an intimation under section 270(1)?

The notice limit is three months from the end of the financial year in which the return is furnished, and the intimation limit is nine months from that year end. For a return filed in FY 2026-27, these fall on 30 June 2027 and 31 December 2027 respectively.

  1. ANotice by 31 March 2027; intimation by 31 December 2027Correct
  2. BNotice by 30 June 2027; intimation by 30 June 2027
  3. CNotice by 31 March 2027; intimation by 31 March 2028
  4. DNotice by 31 December 2027; intimation by 31 December 2027

Explanation

The return was made in FY 2026-27, ending 31 March 2027. Section 270(9) bars a notice under (8) after three months from the end of that financial year, which is 30 June 2027. Section 270(4) bars an intimation after nine months from the end of that year, which is 31 December 2027. Thus the correct pair is 30 June 2027 and 31 December 2027, which is not option 1; checking the options, option 2 gives 30 June 2027 for both, which wrongly sets the intimation date.

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