Skip to content

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

Ravi Traders received a communication of a proposed adjustment under section 270(2) on 1 July. Ravi sent no response. Which statement is correct?

If the assessee does not respond within thirty days of the issue of the communication, the proposed adjustments are made and the intimation is then sent. Consent is not needed and silence does not cancel the adjustment. Any response received within the period must be considered before the adjustment.

  1. AThe adjustment can be made only after 90 days from the communication
  2. BThe adjustment can never be made without Ravi's written consent
  3. CIf no response is received within thirty days of issue of the communication, the adjustment is made and then the intimation is sentCorrect
  4. DThe adjustment is dropped automatically if there is no response

Explanation

Section 270(2)(b) says that where no response is received within thirty days of the issue of the communication, the adjustments shall be made and thereafter the intimation under 270(1)(d) is sent. Consent is not required, and silence does not cancel the adjustment.

Did you get it right without looking?

One question tells you little. A timed set on Self-Assessment and Intimation shows your real accuracy, how long you take and where you lose marks.

Practise Self-Assessment and IntimationFree diagnostic mock

More Self-Assessment and Intimation questions