TMI BlogProcessing of income-tax returns filed in Forms ITR-2, 3, 4, 5 & 6 under section 143(1) of the Income-tax Act-applicability of section 143(1)(a)(vi)-reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, 1961 ('Act') as introduced vide Finance Act, 2016 , w.e.f. 01.04.2017, while processing the return of income, prescribes that the total income or loss shall be computed after making adjustment for addition of income appearing in Form 26AS or Form 16A or Form 16 (the three Forms) which has not been included in computing the total income in the return. 2. In this regard, while processing income-tax returns filed in Forms ITR-2 , 3 , 4 , 5 6 , doubts have arisen regarding the nature, extent and scope of comparison of information as contained in the return of income with the three Forms which might lead to issuance of intimation proposing adjustments in the returned income. It has also come to notice that so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is disclosed, it will be difficult to correlate the receipts in the return with the information in the three Forms. Hence, any likely difference in the receipts under these items in the return with the receipts in the three Forms under this scenario would be excluded from the purview of Sec. 143(1)(a)(vi) . Similarly, it will be difficult to correlate the income under sec.44AE in the return with the information in the three Forms. However, where the presumptive income from business either u/s 44AD or profession u/s 44ADA alone are reported in the return and the gross receipts from presumptive business or profession shown in the return is less than the gross receipts as per the three Forms, intimation proposing adjustment would be iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation available in the three Forms on a gross basis, provisions of section 143(1)(a)(vi) of the Act may be invoked . 3.5 In case of business receipts being taxable under the head 'income from business or profession' which are reported in ITRs 3 , 5 6 Forms, comparison of such receipts in the three Forms with data in ITR at gross level may not be possible as receipts shown in the three Forms would get subsumed in the consolidated income in P L A/c. Further, items in the P L a/c such as commission, interest etc may be shown at a net basis whereas the details in the three forms are reported on a gross basis. Hence, any likely difference in business receipts as contained in ITRs 3 , 5 6 with the three Forms is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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