Piramal Investment Opportunities Fund Vs ACIT (Bombay High Court)
In a significant ruling, the Bombay High Court has held that an application for rectification of an income tax order under Section 154 of the Income Tax Act, 1961 is maintainable even if an appeal challenging the same order is pending before the Commissioner of Income Tax (Appeals) [CIT(A)] under Section 250 of the Act. The court’s decision came in the case of Piramal Investment Opportunities Fund versus Assistant Commissioner of Income Tax (ACIT).
The case revolved around the assessment of Piramal Investment Opportunities Fund for the Assessment Year 2015-16. The Petitioner had initially filed its return of income disclosing interest income. Subsequently, a revised return was filed declaring Nil income. The assessment was completed by the Assistant Commissioner of Income Tax, resulting in an assessment order dated December 30, 2017.
Aggrieved by the assessment order, the Petitioner filed a statutory appeal before the CIT(A). One of the grounds for appeal was the Assessing Officer’s failure to grant credit for advance tax paid to the tune of Rs. 16,80,00,000.
Simultaneously, the Petitioner also filed an application under Section 154 of the Income Tax Act before the Assistant Commissioner seeking rectification of the assessment order. The basis for the rectification application was a mistake apparent from the record – the non-granting of credit for the advance tax payment. The Petitioner contended that this was an error that should be rectified, leading to a refund.
