CBDT-No processing of returns for refund if scrutiny selected

CA Sumit Grover

Vide Finance Act, 2012, section 143(1D) was introduced in income tax act which prohibited processing of income tax returns in case notice u/s 143(2) has been issued(i.e. scrutiny cases).

Ambiguity arose as to whether the said sub-section applies to those cases as well wherein refunds have been applied in the returns, however the same has been issued notice for scrutiny assessment.

 

Now, vide instruction no. 01/2015, it has been clarified by CBDT that the returns involving refunds, also fall under the purview of the said sub-section, 

Hence, processing of returns for refunds can't be undertaken wherein the said case has been selected for scrutiny. 

To Download the Official Circular Click Here

Follow @studycafe1