Skip to content

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

Mr. Arvind Shah's return for tax year 2026-27 was found defective, and the Assessing Officer intimated the defect. Arvind did not rectify it within fifteen days or any extended period, but rectified it later before assessment was made. What is the position under section 263(7)?

The Assessing Officer may condone the delay and treat the return as valid. Although a return not rectified within the allowed period is invalid, section 263(7)(c) permits condonation where the defect is rectified before assessment is made. The validity is discretionary, not automatic.

  1. AThe return is permanently invalid and cannot be treated as valid
  2. BThe Assessing Officer may condone the delay and treat the return as validCorrect
  3. CThe return is automatically valid from the date of rectification
  4. DThe return becomes an updated return

Explanation

Clause (7)(b) treats the return as invalid if the defect is not rectified in time, but (7)(c) lets the Assessing Officer condone the delay and treat it as valid if rectified before assessment. Condonation is discretionary, not automatic, so automatic validity is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Return of Income shows your real accuracy, how long you take and where you lose marks.

Practise Return of IncomeFree diagnostic mock

More Return of Income questions