Scope of prima facie adjustment u/s 143(1) of Income Tax Act has been  enhanced by the amendment to the section in the Finance Act,2016.

While processing the returns the amendment has enabled the following adjustments to be considered:

• Loss if any claimed will be disallowed if the return of previous year for which set off of loss is claimed was furnished beyond the due date specified under section 139(1)
• Disallowance of expenditure stipulated in the audit report but not considered while computing the total income in the return.
• Disallowance of deduction claimed under section 10AA, 80-IA, 80IAB, 80IB, 80IC, 80ID, 80IE, if the return is furnished beyond the due date specified under section 139(1);
• Addition of income appearing in Form 26AS or Form 16A or Form 16 which has not been included in computing the total income in the return:

But before making any such adjustments intimation shall be given to assessee either in writing or in electric mode. Response has to received from the assessee within 30days of issue of intimation . If no information is received then the adjustments shall be made.

Thus before filing the return we must ensure Form 26AS , audit report and also the dates on which the returns have been filed. Otherwise the return would be processed by addition to the income as per form 26AS or after disallowing the set off of losses, expenditures and deductions which we failed to do in the return of income  filed.

These amendments are applicable w.e.f. 01.04.2017 i.e. A Y 2017-18.