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CS Professional · Advanced Direct Tax Laws and Practice · Assessment

Under the Income-tax Act, 2025 (applicable from the June 2027 session), before the processing authority makes an adjustment under section 270(1)(a) while processing a return, what must it do?

Before making any processing adjustment, the department must communicate the proposed adjustment to the assessee in writing or electronically and consider the response. If no reply comes within thirty days, it makes the adjustment and sends the intimation.

  1. AGive the assessee a communication of the proposed adjustment in writing or electronic mode and consider any response receivedCorrect
  2. BObtain prior approval of the Principal Commissioner for every adjustment
  3. CServe a notice requiring the assessee to attend the office of the Assessing Officer in person
  4. DWait for one year from the end of the financial year before making the adjustment

Explanation

Section 270(2) requires a communication of the adjustments, in writing or electronic mode, and any response received must be considered. If no response arrives within thirty days, the adjustments are made. No Commissioner approval or personal attendance is required for processing adjustments.

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