Processing of returns filed in response to notice u/s142(1). - Income Tax - 1860/1990

INSTRUCTION NO. 1860/1990 Dated: September 28, 1990 It has been brought to the notice of the Board that the returns filed in response to notice under section 142(1) of the Income-tax Act are being processed as scrutiny returns for the purpose of passing orders under section 143(3) of the Act. 2. It is hereby clarified that even where no returns have been filed voluntarily under the provisions of Section 139 of the Act, but the assessee has filed the returns in response to notice under section 142(1) of the Act, and these returns are processed only for making prima facie adjustment and not for scrutiny, such returns should also be treated as non-scrutiny returns filed under section 139(1) of the Income-tax. It is not necessary that such returns should invariably be scrutinised for the purpose of passing orders under section 143(3) of the Act, unless the assessing officer otherwise considers it necessary or expedient to ensure that the assessee has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner. 3. This instruction may be brought to the notice of all officers working in your region/charge urgently. 4. Hindi version will follow.