No addition for mismatch of income with 26AS form 16, 16A for ITR-1 u/s 143(1)(a)(vi) unless income is completely not disclosed

No addition for mismatch of income with 26AS form 16 16A for ITR1 u/s 143(1)(a)(vi) unless income is altogether not disclosed. CBDT Instruction

Instruction  No. 9/2017

Government of India
Ministry of Finance
Department  of Revenue
Central Board of Direct Taxes

North Block, New Delhi, the 11th October, 2017

Order under section 119 of the Income-tax Act, 1961

Subject: Processing of returns in Form ITR-1 under section 143(1) of the Income-tax Act, 1961-applicability of section 143(1)(a)(vi)- reg.-

Clause (vi) of sub-section (a) of section 143(1) of the Income-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 of 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 Form ITR-1, 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 to the returned income.

3. The matter has been examined by the Central Board of Direct Taxes (the Board). In returns filed in ITR-1 Form, information about a particular head/item of income is only on net basis and thus, complete data/information may not be available therein which may enable comparison with the data/information as contained in the three Forms in a meaningful abcaus.in manner. Therefore, in exercise of its powers under section 119 of the Act, the Board hereby directs that provision of section 143(1)(a)(vi) of the Act would not be invoked to issue intimation proposing adjustment to the income/loss so filed in ITR-1 Form in such situations.

4. However,where any head/item of income has been altogether omitted to be included in the return of income filed in ITR-1 while the three Forms contain specific detail in this regard pertaining to that item/head of income, section 143(1)(a)(vi) of the Act shall continue to abcaus.in apply. Further, for purpose of section 143(1)(a)(vi) of the Act, only the three Forms specified there in would be taken into consideration.

5. The pending intimations proposing adjustments under section 143(1)(a)(vi) wherein the taxpayer has tendered an explanation without revising the return or has not tender ed any response till now shall be dealt with in accordance with the above direction. However, in cases where on receiving the intimation u/s 143(1){a)(vi) of the Act, the concerned assessee  abcaus.in has already filed a revised return, such returns shall be treated as valid and handled accordingly.

6.  This may be brought to the notice of all for necessary compliance.

7. Hindi version to follow.

(Ankita Pandey)
Under Secretary (ITA.II), CBDT

(F.No. 225/333/2017-ITA.II)

Copy to:-

1. PS to FM/OSD to FM/PS to MoS(F)/OSD to MoS(F)
2. PS to Secretary (Revenue)
3. Chairman, CBDT
4. All Members, CBDT
5. All DsGIT /Pr.CCsiT
6. All Joint Secretaries/CsIT, CBDT
7. Directors/Deputy Secretaries/Under Secretaries of CBDT
8. DIT (RSP&PR)/Systems, New Delhi
9. The C&AG of India (30 copies)
10. The JS & Legal Advisor, Min of Law & Justice, New Delhi
11. The Institute of Chartered Accountants of India
12. All Chambers of Commerce
13. CIT (M&TP). Official Spokesperson of CBDT
14. O/o Pr. DGIT(Systems) for uploading on official website
15. JCIT (Database Cell) for uploading on departmental website

(Ankita Pandey)
Under Secretary-ITA .II,CBDT

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