Mandatory processing of return of income before issuance of assessment order :

(i) Section 143(1) requires processing of return of income filed under section 139(1) or in response to a notice issued under section 142(1).

(ii) An intimation has to be prepared or generated and sent to the assessee specifying the sum payable or the refund due, to the assessee.

(iii) No intimation can be sent after the expiry of one year from the end of the financial year in which the return is made. This is provided in the second proviso to section 143(1).

(iv) Section 143(1D) provides that processing of a return is not necessary where a notice has been issued to the assessee under section 143(2).

(v) Section 143(1D) has now been substituted to provide that the processing of a return is not necessary before the expiry of the one year from the end of the financial year in which the return is made, where notice has been issued to the assessee under
section 143(2).

(vi) However, the return has to be processed before the issuance of an order under section 143(3).