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

Under section 270(15), where a regular assessment under section 270(10) is made and the amount refunded earlier under sub-section (1) exceeds the amount refundable on regular assessment, what is the treatment of the excess?

The excess refund is deemed to be tax payable by the assessee. Section 270(15)(b) says that where the refund given under sub-section (1) exceeds what is refundable on regular assessment, the excess is treated as tax payable and the Act's provisions apply.

  1. AIt is deemed to be tax payable by the assesseeCorrect
  2. BIt is forfeited to the Central Government as a penalty
  3. CIt is adjusted against the next year's advance tax only
  4. DIt is ignored because the refund was already granted

Explanation

Section 270(15)(b) provides that if no refund is due on regular assessment or the earlier refund exceeds the refundable amount, the whole or excess refund is deemed to be tax payable by the assessee. It is not a penalty or ignorable amount.

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