Section 154

  • Aug
  • 29

Demand U/s 143(1) by Income Tax Department & Rectification Thereof U/s 154

However, The Income Tax Department may deny credit of TDS in cases where TDS is available in Form 16/Form 16A/TDS Certificates but not available in Form 26AS. Also in some cases employer/deductor may not have deposited the said TDS or deposited in wrong PAN number. In such cases, following provision of the Act shall be helpful to the taxpayer/professional; Section 205 of the Act in clear terms, provides that the assessee shall not be called upon to pay the tax himself to the extent to which tax has been deducted from that income.

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  • Mar
  • 26

Sec 154 cannot be resorted for applying sec 115JB of Income Tax Act,1961

In the case of Cardinal Drugs Pvt Ltd.Hon’ble ITAT has observed that there was no scope for the A.O. to have resorted to the provision of Section 154 of the Act for the purpose of enhancing the income of the assessee.by stating as under:- The A.O. on long drawn process of reasoning should not have passed the order under Section154 of the Act. The issue raised by the A.O. in proceeding under Section 154 of the Act is highly debatable which requires the issue to be reconsidered by the A.O.about applicability of the provision of Section 115JB of the Act which was notraised by the A.O. in assessment or appellate proceedings.

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  • Aug
  • 20

inadvertent mistake by assessee in filing of Return of Income Tax will not lead to disallowance

Facts of the case show that the assessee filed return of income declaring net income of Rs. 24,14,640/- electronically on 21.10.2007. The return was processed u/s. 143(1) of the I.T. Act. The assessee noticed that credit for advance tax of Rs. 1,10,000/- and TDS of Rs. 5,38,560/- was not allowed to the assessee. The assessee […]

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  • May
  • 24

How to file Online Rectification application u/s 154 & Common Mistakes

Rectification application maybe filed u/s 154 of the Income Tax Act by the taxpayer in case of any mistake apparent from the record. An Income Tax authority may: a) amend any order passed by it under the provision of this Act b) amend any intimation or deemed intimation under sub-section (1) of Section 143. Subject […]

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  • Apr
  • 15

If issue is debatable, it cannot be corrected u/s 154 of Income Tax

It is settled position of law that where any issue is debatable, it cannot be corrected u/s 154 of the Act. In this regard, the Hon’ble Apex Court in the case of T.S. Balaram ITO v. Volkart Bros. [1971] 82 ITR 50 is relevant wherein an action taken by Assessing Officer u/s 154 of the Act was found to be illegal.

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  • Apr
  • 13

S. 154 Order can be rectified by AO without giving opportunity of hearing to Assessee

In the present case, the Ld. AO made changes in the original order by invoking sec 154 based on evidences and disallowed a certain sum of expenditure which were related to previous years and as told found to be of capital in nature too. On appeal to CIT by the assessee, an order was passed for providing an opportunity of being heard to the assessee.

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