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

Ramesh Traders furnished its return and the processing shows an adjustment that increases the tax payable. Before making the adjustment, a communication of it was issued electronically to the assessee on 1 March. Ramesh gave no response. From which stage can the adjustment be made and the intimation sent?

Where no response is received within thirty days of the issue of the communication about proposed adjustments, the adjustments are made and the intimation is then sent. The assessee's response, if any, must be considered first, and no personal attendance is required.

  1. AImmediately on 1 March, since the communication has been issued
  2. BAfter thirty days of the issue of the communication, if no response is receivedCorrect
  3. CAfter sixty days of the issue of the communication
  4. DOnly after the assessee personally attends the office of the Assessing Officer

Explanation

Section 270(2) requires a prior communication of the proposed adjustments, in writing or electronic mode. The response is considered, and where none is received within thirty days of issue, the adjustments are made and the intimation under sub-section (1)(d) is then sent. Sixty days or a personal attendance is not required.

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