RECTIFICATION OF AN ORDER RECEIVED FROM CPC AND ISSUES RELATING TO DISPOSAL OF THE RECTIFICATION PETITION

If the assessee finds a mistake in the order received from the new Income Tax Site, he has been prompted to click the SERVICES button and proceed for filing ‘Rectification Petition’. But under ‘services’ menu, the option for filing ‘Rectification Petition’ is not found.

Hence the only option is to file an appeal and for filing appeal the assessee has to deposit 20% of the demand even if there is a blatant mistake in the assessment order passed. Again, the statute gives four years long time to rectify a mistake apparent on record.

It is not understood why the assessing officer is given such a long time to rectify a mistake. For example, in the order passed instead of adding Rs. 1 Lakh to income if Rs. 10 Lakhs is added or Rs. 10 Lakhs is wrongly disallowed instead of Rs. 1 Lakh this would result in an additional tax of Rs. 3,00,000/- (instead of Rs. 30,000) plus interest and the penal proceeding would have also been initiated.

It is not just and equitable to direct the assessee to respond within 30 days (1 month) for payment of the wrong demand and the department will take 4 years (48 months) to rectify or reject the petition.

To be fair and equitable, the Income Tax Act should be amended in such a way that the Assessing Officer will also be given time of 30 days only for rectification and if the rectification order is not passed within the time allowed rejecting the petition the rectification, the petition made should be deemed to have been allowed and once the rectification petition is filed the assessee should automatically be given time till the disposal of the petition to pay tax as well as to prefer an appeal.

As of now even if there is a mistake the assessee is compelled to pay and go for filing appeal in spite of the fact that he has filed a petition for rectification u.s 154

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4 Comments

    1. CA. M. Lakshmanan says:

      Good question. Either CBDT or MOF or Infosys has to answer. But tll date it is not enabled. Rectification is to be filed within 30 days. What will happen to those orders passed from 01.07.2021 till the date on which it is going to enabled. God alone knows!

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