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

Under section 270 of the Income-tax Act, 2025, while processing a return, which of the following is one of the adjustments that may be made to the total income or loss?

Correcting an arithmetical error in the return is a permitted processing adjustment under section 270(1)(a)(i). Matters needing inquiry, third-party information or judgement on reasonableness of expenses are outside processing and are dealt with only in scrutiny assessment.

  1. ADisallowance of a deduction because the Assessing Officer doubts the genuineness of the expense after calling for books
  2. BCorrection of an arithmetical error in the returnCorrect
  3. CAddition of income based on information obtained from a third-party survey
  4. DDisallowance of expenditure on the ground that it is unreasonable in amount

Explanation

Section 270(1)(a)(i) lists any arithmetical error in the return as a permitted adjustment during processing. The other options require inquiry, external information or judgement about reasonableness, which belong to scrutiny assessment and not to processing adjustments.

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