Clause 66 - Amendment of section 143. - Finance Bill, 2016

Amendment of section 143. 66. In section 143 of the Income-tax Act,- (a) with effect from the 1st day of April, 2017,- (I) in sub-section (1), in clause (a),- (A) in sub-clause (i), the word or appearing at the end shall be omitted; (B) after sub-clause (ii), the following sub-clauses shall be inserted, namely:- (iii) disallowance of loss claimed, if return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139; (iv) disallowance of expenditure indicated in the audit report but not taken into account in computing the total income in the return; (v) disallowance of deduction claimed under sections 10AA, 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID or section 80-IE, if the return is furnished beyond the due date specified under sub-section (1) of section 139; or (vi) addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return: Provided that no such adjustments shall be made unless an intimation is given to the assessee of such adjustments either in writing or in electronic mode: Provided further that the response received from the assessee, if any, shall be considered before making any adjustment, and in a case where no response is received within thirty days of the issue of such intimation, such adjustments shall be made; ; (II) in sub-section (1D), the following proviso shall be inserted, namely:- Provided that such return shall be processed before the issuance of an order under sub-section (3). ; (b) for sub-section (2), the following sub-section shall be substituted with effect from the 1st day of June, 2016, namely:- (2) Where a return has been furnished under section 139, or in response to a notice under sub-section (1) of section 142, the Assessing Officer or the prescribed income-tax authority, as the case may be, if, considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not under-paid the tax in any manner, shall serve on the assessee a notice requiring him, on a date to be specified therein, either to attend the office of the Assessing Officer or to produce, or cause to be produced before the Assessing Officer any evidence on which the assessee may rely in support of the return: Provided that no notice under this sub-section shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished. .