Processing of Return (Intimation) - Section 143(1)

Processing of returns: statutorily required adjustments and intimation precede assessment, with refunds subject to withholding or set off.

Processing of return requires computing total income or loss after adjustments for arithmetical errors, incorrect claims apparent from the return, prescribed inter year inconsistencies, disallowance of loss set off where prior year return was late, disallowance of audit indicated expenditures, disallowance of certain belated deductions, and addition of income reflected in prescribed information statements. An intimation must be issued before adjustments and within nine months of the financial year end; mandatory processing is required before certain assessment actions, and refunds may be withheld or set off with recorded reasons and prior approvals.