1. Where a return has been made under Section 115WD
(i) if any tax or interest is found due on the basis of such return, after adjustment of any advance tax paid, any tax paid on self assessment and any amount paid otherwise by way of tax or interest, then without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the, sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly ; and
(ii) if any refund is due on the, basis of such return, it shall be granted to the assessee and an intimation to this effect shall be sent to the assessee :
Except as otherwise provided in this sub-section, the acknowledgment of the return shall be deemed to be an intimation under this sub-section where either no sum is payable by the assessee or no refund is due to him
No intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made.
2. Where a return has been furnished under section 115WD, the Assessing Officer shall, if he considers it necessary or expedient to ensure that the assessee has not understated the value of fringe benefits or has not underpaid the tax in any manner, serve on the assessee a notice requiring him on a date to be specified therein, either to attend his office or to produce, or cause to be produced, any evidence on which the assessee may rely in support of the return
No notice under this sub-section shall be served on the assessee after the expiry of six months from the end of the month in which the return is furnished. [Proviso 1]
3. On the day specified in the notice issued under sub-section (2), or as soon afterwards as may be, after hearing such evidence. As the assessee may produce and such other evidence as the Assessing Officer may require on specified points, and after taking into accdunt all relevant material, which he has gathered, the Assessing Officer shall, by an order in writing, make an assessment of the value of the fringe benefits paid or payable by the assessee, and determine the sum payable by him or refund of any amount due to him on the basis of such assessment.
4. Where a regular assessment under section 115WD(3) is made
(a) any tax or interest paid by the assessee under sub-section (1) shall be deemed to have been paid towards such regular assessment
(b) if no refund is due on regular assessment or the amount refunded under sub-section (1) exceeds the amount refundable on regular assessment, the whole or the excess amount so refunded shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly.