(1)Where a return has been made under section 263, or in response to a notice under section 268(1) such return shall be processed in the following manner:—(a)the total income or loss shall be computed after making the adjustments towards the following:—(i)any arithmetical error in the return; or(ii)an incorrect claim, if such incorrect claim is apparent from any information in the return; or(iii)any such inconsistency in the return, with respect to the information in the return of any preceding previous year, as may be prescribed; or(iv)disallowance of loss claimed, if return of the tax year for which set off of loss is claimed was furnished beyond the due date specified under section 263(1); or(v)disallowance of expenditure or increase in income indicated in the audit report but not taken into account in computing the total income in the return; or(vi)disallowance of deduction claimed under section 144 or under any of the provisions of Chapter VIII-C, if the return is furnished beyond the due date specified under section 263(1);(b)the tax, interest and fee, if any, shall be computed on the basis of the total income computed under clause (a);(c)the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax, interest and fee, if any, computed under clause (b) by—(i)any tax deducted at source;(ii)any tax collected at source;(iii)any advance tax paid;(iv)any rebate or relief allowable under Chapter IX;(v)any tax paid on self-assessment; and(vi)any amount paid otherwise by way of tax, interest or fee;(d)an intimation shall be sent to the assessee specifying the sum determined to be payable by, or refund due to, the assessee under clause (c); and(e)the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee.
