Clarification Regarding applicability of section 143(1D) of Income Tax Act, 1961

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.... necessary to process the return in such a case. 2. Some doubts have been expressed, in view of the words "shall not be necessary" used in the said sub-section, as to whether this provision permits processing of returns having a refund claim, where notice under section 143(2) of the Act has been issued. 3. The matter has been examined by the Board. Sub-section (1D) of section 143 of th....

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....es where an unprocessed return is selected for scrutiny, the legislative intent is to prevent the issue of refund after processing as scrutiny proceedings may result in demand for taxes on finalisation of the assessment subsequently. 4. Considering the unambiguous language of the relevant provision and the intention of law as discussed above, the Central Board of Direct Taxes, in exercise of the ....