Section 143(1)- Increase in scope of “Incorrect claim apparent from any information in the return”– sub-clause (iv) may be redrafted to include specific reference to report under section 44AB
Issue/Justification
The Finance Act, 2016 has amended the said section by inserting sub-clause (iv) to sub-section (1) of section 143 for disallowing expenditure indicated in the “audit report” but not taken into account in computing the total income in the return.
Since dis allowance of expenditure is expressly and exhaustively covered in the format of report under section 44AB, sub-clause (iv) needs to be appropriately redrafted to include specific reference to the report under section 44AB.
Suggestion
It is suggested that sub clause (iv) may be appropriately reworded to disallow expenditure indicated in the report of audit to be furnished under section 44AB but not taken into account in computing total income in the return.
