Sponsored
    Follow Us:
Sponsored

Section 154 of the Income Tax Act, 1961 (Act) deals with provisions relating to rectification of mistakes apparent from the record an income-tax authority (income tax authority is defined under section 116 of the Act).

It is important to note that order cannot be rectified under this section after expiry of four years from the end of the financial year in which the order sought to be rectified was passed.

Is there any time limit to pass the rectification order under Section section?

Sub-section (8) of section 154 specifies that rectification application under this section need to be disposed off in a time bound manner (i.e. six months from the end of the month in which application is received).

There is number of judgements (discussed in later paragraph) which shows that department is not following the stipulated time limit to pass the rectified order and application remains undisposed for longer. In this regard, the Central Board of Direct Taxes (“CBDT”) has issued instruction (instruction no 1 dated 15.02.2016) wherein it is mentioned that the time limit stipulated in section 154(8) need to be strictly followed by the authority for disposing off the application for rectification.

Time Limit to Pass Section 154 Rectification Order – Judicial Precedents

Judicial Precedents

While talking about judicial precedents, there are number of rulings of Hon’ble Delhi High Court wherein Hon’ble High Court has directed the authority to pass order in a time bound manner. In most of the order, although, time limit to pass order was expired but on the writ petition, Hon’ble Delhi High Court directed the revenue to pass order within additional time granted by the Hon’ble Court.

Recently, in the case of Nokia India Private Limited vs. Assistant Commissioner of Income Tax (W.P.(C) 3145/2022 & CM APPL.9154/2022) Hon’ble Delhi High Court vide order dated 21.02.2022 directed the Revenue to dispose off the matter in six weeks albeit time limit to pass order was expired on 31.01.2022.

There are similar judgements of Hon’ble Delhi High Court in the case of:

******

Disclaimer: The views expressed in this article should not be construed as legal advice. Before filing of legal reply or submissions one should consult with their consultants/advisors.

Sponsored

Tags:

Author Bio

Keshav Jha is a Chartered Accountant and a commerce graduate with a strong foundation in finance and taxation. He brings a wealth of experience from his tenure at Luthra & Luthra Chartered Accountants in India, where he specialized in international taxation and transfer pricing. During his ca View Full Profile

My Published Posts

Final Order U/S 144C not appealable if Assessee not filed objection against  draft assessment order Transfer Pricing: Additions deleted in absence of comparable Transfer Pricing: No penalty for mere difference in level of capacity utilization A change of opinion cannot be the basis of reopening the completed assessment Mutual Agreement procedure – OECD Recommendation on Stage 2 Peer Review Reports regarding time limit View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Sponsored
Search Post by Date
October 2024
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031