Section 154 Rectification Order Renders Penalty Proceedings Inconsequential: Bombay HC

Kusharaj Madhav Bhandary Vs ITO (Bombay High Court) In the case of Kusharaj Madhav Bhandary vs. ITO, the Bombay High Court reviewed an appeal by the petitioner, a salaried individual, regarding his 2017-18 income tax assessment. The issue began when Bhandary’s employer deducted ₹26,43,323 as TDS, shown in his Form 16 and Form 26AS. Despite this, the Income Tax Department’s assessment order, issued on March 30, 2022, failed to account for the TDS, resulting in an inflated tax liability and an interest charge of ₹29,00,303. Additionally, a demand of ₹55,43,799 was raised, followed ...