Rule 166 — Conditions for treating a return as defective…

Rule 166 lists four conditions under which a return is regarded as defective — incomplete fields, missing audit report, unfilled tax payment details in an updated return, and a brought forward MAT or AMT credit that does not match the latest return — and lets the Board notify exceptions.

Conditions (sub-rule 1). A return is defective if:

(a) not all the fields, parts, schedules, statements and columns applicable to the assessee are duly filled in, including the computation of income under the applicable heads, gross total income and total income;
(b) in an auditable case, the audit report under section 63 was not furnished before the return was filed;
(c) for a return under section 263(6), the tax payment details required by section 267 are not duly filled in; or
(d) the brought forward credit of minimum alternate tax (MAT) or alternate minimum tax (AMT) claimed is not in accordance with the carry forward allowed in the latest return.

Exceptions (sub-rule 2). The Board may notify classes of persons to whom any of these conditions does not apply, or applies with modifications.

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Conditions for treating a return as defective return under section 263(7)