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CMA Final · Direct Tax Laws and International Taxation · Return of Income

Kiran Pvt Ltd furnished a return of income for tax year 2026-27. Which of the following situations does NOT bar it from furnishing an updated return under section 263(6)?

Furnishing an updated return in response to a section 280 notice, even with reassessment pending, is not barred. Section 263(6)(b)(ii) and the exception in (c)(v) permit it, whereas reducing tax liability, a second updated return, or a survey bar the filing.

  1. AThe updated return would reduce the total tax liability shown in the earlier return
  2. BAn updated return has already been furnished for the same tax year
  3. CA survey under the provision other than section 253(4) has been conducted on the company for that tax year
  4. DThe updated return is furnished in response to a notice under section 280 while reassessment proceedings are pendingCorrect

Explanation

Clause (c)(v) bars an updated return when assessment or reassessment proceedings are pending or completed, but expressly excepts a case under clause (b)(ii), where the return is furnished under a notice under section 280 within the period specified. The other three are barred by clause (c)(ii), (c)(iv) and clause (d)(ii).

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