Section 154

  • Dec
  • 07

No Rectification u/s 154 for mistake from long drawn process of reasoning

Karnataka High Court held In the case of K.S. Venkatesh vs. DCIT that The Hon’ble Apex Court in T.S.Balaram Vs Volkart Brothers and others reported in 1971 (82) ITR 50 has observed that a mistake apparent on the record must be obvious and patent mistake and not something which is established by long drawn process of reasoning. Thus, keeping in mind the finding of this case, in the instant case the Assessing Officer sought to rectify the original assessment order on the ground that carried forward business loss could have been set off against “Business Income” only is not valid ground for rectification u/s 154.

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  • Nov
  • 13

Order resulting in payment of interest u/s 244A is appealable

Sandvik Asia Limited V/s. CIT (OSD)- ITAT Pune – Interest on the refund is really a part of the refund and interest and refund are not two different things. When the Income-tax Officer has passed the order under section 154 of the Act without granting interest due to the assessee under section 244[1A] of the […]

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  • Oct
  • 28

All about Rectification of Mistake under Section 154

Introduction Sometimes there may be a mistake in any order passed by the Assessing Officer. In such a situation, mistake which is apparent from the record can be rectified under section 154. This article discusses provisions relating to rectification of mistake under section 154  of Income Tax Act, 1961.

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  • Sep
  • 29

Rectification order u/s 154 cannot be made on debatable issue: HC

In the case of KKJ Foundations vs. ADIT it was held by High court of Kerala that It is a settled proposition of law that rectification is a process by which a mistake is set at right. It thus means correcting an error which was apparent from record and not deciding the matter over and again on merits and that the rectified order does not supersede the original order but continues with the incorporated changes.

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  • Sep
  • 12

Understanding Rectification of Mistake U/s. 154

Understanding Rectification of Mistake under Section 154 of Income Tax Act, 1961 There is no doubt that anybody can cause/effect/commit a mistake ‘inadvertently’ while reading, understanding, interpreting & writing, or during drafting, dictating, or taking note, translating from shorthand, typing, computing, etc.     Considering this factor, the makers of Income Tax Law have kept open a […]

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  • Aug
  • 20

Claim of deduction u/s 80IB cannot be withdrawn in proceedings u/s 154

In the case Vinod Kumar Surana Vs. ITO the Hon’ble Kolkata ITAT held that the fact of withdrawal of deduction u/ 80IB of the Act in the subsequent years when the same were duly granted by the ld. AO in the initial assessment years per se becomes a debatable issue and hence same cannot be dealt in the proceedings u/s 154 of the Act as the same cannot be construed as a patent, glaring, obvious mistake apparent from record.

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  • Aug
  • 13

Decision on a debatable point of law is not a apparent mistake & cannot be rectified u/s 154

Assessee claimed deductions on account of excise duty paid and interest thereon which was originally allowed by AO but subsequently rectified u/s 154 by making addition of the same. ITAT examined the facts and circumstances of the case and held that decision on a debatable point of law is not a mistake apparent from record and cannot rectified u/s 154.

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  • Jul
  • 29

Section 154 can not be applied if a debatable point involved

Mistake apparent on the record u/s 154 must be an obvious and patent mistake and not something which can be established by a long drawn process of reasoning on points on which there may be conceivably two opinions. A decision on a debatable point of law is not a mistake apparent from the record.

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  • Jul
  • 13

Loss in pension fund has to excluded from insurance business income

Tribunal in this above case decided two debatable issues. Firstly that the mistake can be rectified after assessment attained finality and assessee had accepted the assessment order. The same is decided by the tribunal in the light of decision of apex court. Second issue relates to computation of income when there is loss of pension fund related to insurance business and the same is decided in the light of decision of jurisdictional high court.

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  • Jun
  • 23

Inadvertent Claims in ITR – Whether a Hard Nut To Crack

Income Tax law provides an exhaustive, encyclopedic and compendious machinery to deal with the issues of what can be conceived and what can be believed with regard to the jurisprudence of taxing the subject as a whole. In this profitable and solvent venture of taxing the subject through the route of his due filings with the respective authorities and agencies designated and deputed by the government

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