Clause 155 - Processing of return - Direct Taxes Code Bill, 2009

Processing of return 155. (1) The Department shall process the return received under section 154 in the following manner, namely :- (a) the tax bases shall be computed after making the following adjustments, namely:- (i) any arithmetical error in the return; and (ii) an incorrect claim, if such incorrect claim is apparent from the existence of any information in the return. (b) the tax and interest, if any, shall be computed on the basis of the tax base computed under clause (a);and (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any pre-paid taxes and any other amount paid by way of tax and interest. (2) The Department shall send an intimation in the prescribed form to the assessee specifying the tax bases so computed, the liability to pay tax on such tax bases, the amount of credit allowed for prepaid taxes and the sum payable by, or refundable to, him and such other particulars as may be prescribed. (3) The Department shall not send any notice of demand under section 168 in respect of any sum payable on account of any adjustment made under sub-section (1), if the return is processed after the expiry of twelve months from the end of the month in which the return is furnished. (4) The Department may make a scheme for centralised processing of returns, for the purposes of processing the return under sub-section (1), with a view to expeditiously determining the taxpayable by, or the refund due to, the assessee. (5) For the purposes of this section,- (a) "an incorrect claim apparent from the existence of any information in the return" shall mean a claim, on the basis of an entry, in the return (i) of an item, which is inconsistent with another entry of the same, or some other item, in such return; (ii) in respect of which information required to be supplied to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds the specified statutory limit which may have been expressed as monetary amount, percentage, ratio or fraction; (b) any sum payable on account of any adjustment made under sub-section (3) means the aggregate of,- (i) tax payable on the tax base determined pursuant to processing under subsection (1) as reduced by the tax payable on the tax base declared in the return; and (ii) the interest payable on the amount determined under sub-clause (i).