The intimation under section 143(1) is sent by the IT Department in response to tax return filed by the tax payers. The intimation as the name suggests intimates the tax payer about, any tax and interest payable or if the assessee is eligible for refunds after providing all the necessary adjustments relating to tax deducted at source, advance tax paid, any tax paid on self – assessment or any other amount in the nature of tax or interest.
This intimation shall be deemed to be notice for tax demand under section 156 as the case may be and all the provisions will apply accordingly. If there is no sum payable or refundable then the acknowledgement of the return shall be deemed to be intimation.
The total income of an assessee shall be computed after making the following adjustments in the return of income-
a) Any arithmetical error in the return or
b) An incorrect claim apparent from any information in the return.
“An incorrect claim apparent from any information in the return” shall mean such claim on the basis of an entry, in the return,-
a) Of an item which is inconsistent with the entry of similar other item in such return;
b) In respect of which, necessary information to substantiate such entry has not been furnished; or
c) In respect of any deduction, where it exceeds the statutory limit which may be expressed as monetary amount or percentage or ratio or fraction.