Returns and Assessments Chapter- 17
period not exceed 15 days from the due date of furnishing unless there are exceptional
circumstances justifying a longer extension of time. [Section 119(3) and (4)]Provided that where the Commissioner has not granted extension for furnishing return, the Chief
Commissioner may on an application made by the taxpayer for extension or further extension, as the
case may be, grant extension or further extension for a period not exceeding 15 days unless there
are exceptional circumstances justifying a longer extension of time.An extension of time granted to file the return and other documents shall not be deemed as
allowed for tax payable with the return and default surcharge shall be charged till the payment of
the same. [Section 119(6)]Example: A and B Co is an AOP having year end 30- 06 - 2023. However on the last date of filing of
income tax return the information was not complete to file the income tax return. Now what option is
available with the AOP to avoid from the penalty of late filing of income tax return?Solution: U/s 119 the AOP is having the option to file a request for extension regarding filing of
income tax return on the last date to file the income tax return.- Status of complete return under the ordinance [Section 120(1), (1A) and (2)]
Where a taxpayer has furnished a complete return of income other than a revised return for a tax
year ending on or after 1.7.2002 and the return shall be taken for all purposes to be an
assessment order issued to the taxpayer by the CIR. However the Commissioner Inland Revenue
may conduct audit of the income tax affairs of a person u/s 177.Adjustments to be made in declared respective amounts of the return [Section 2A]
A return of income furnished under sub-section (2) of section 114 shall be processed through
automated system to arrive at correct amounts of total income, taxable income and tax payable by
making adjustments for—
(i) any arithmetical error in the return;
(ii) any incorrect claim, if such incorrect claim is apparent from any information in the return;
(iii) disallowance of any loss, deductible allowance or tax credit as specified; and
(iv) disallowance of carry forward of any loss under clause (b) of sub-section (1) of section 182A.
Provided that no such adjustments shall be made unless a system generated notice is
given to the taxpayer specifying the adjustments intended to be made:
Provided further that the response received from the taxpayer, if any, shall be considered
before making any adjustment, and in a case where no response is received within 30 days of
the issue of such notice, adjustments shall be made.
Provided also that where no such adjustments have been made within 6 month of filing of
return, the amounts specified in the return as declared by the taxpayer shall be deemed to
have been taken as adjusted amounts on the day the return was filed and the taxpayer shall
be intimated automatically through IRIS.
Provided also that the provisions of this sub-section shall apply from the date notified by the
Federal Board of Revenue in the official Gazette.
(7) For the purposes of this section,—
(a) “arithmetical error” includes any wrong or incorrect calculation of tax payable including any
minimum or final tax payable.
(b) "an incorrect claim apparent from any information in the return" shall mean a claim, on the
basis of an entry, in the return,—
i. of an item, which is inconsistent with another entry of the same or some other item in
such return;
ii. regarding any tax payment which is not verified from the collection system; or
iii. in respect of a deduction, where such deduction exceeds specified statutory limit
which may have been expressed as monetary amount or percentage or ratio or
fraction.