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

Under section 270 of the Income-tax Act, 2025, before the processing of a return makes an adjustment to the total income under sub-section (1)(a), what must be done, and what happens if the assessee does not respond?

The assessee must first be given a communication of the proposed adjustment, in writing or electronically. Any response is considered. If nothing is received within thirty days of issue, the adjustment is made and the intimation is then sent, as section 270(2) provides.

  1. ACommunication of the proposed adjustment must be given; if no response comes within thirty days of issue, the adjustment is made and the intimation is sentCorrect
  2. BNo communication is needed; the adjustment is made and the intimation is sent directly
  3. CCommunication must be given; if no response comes within seven days, the adjustment is made
  4. DCommunication must be given; if no response comes within thirty days, the return is treated as defective and the adjustment is dropped

Explanation

Section 270(2) requires a communication of the adjustment in writing or electronic mode. The assessee's response, if any, is considered. If no response is received within thirty days of the issue of the communication, the adjustment is made and then the intimation is sent. The seven-day and no-communication options contradict this, and the option that drops the adjustment on silence is wrong.

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