section 154

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 Sir I had applied for rectification u/s 154 for an assessee. There has been no response from department regarding the application. More than 6 months have passed.
I want to ask that is there any provision in income tax that if rectification order not passed within 6 months then it will be deemed to be in favour of the assessee.
Plz reply asap.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 October 2010 No there is no such provision. I have also applied for rectification u/s 154 and in many cases no response has been received for more than a year. Just wait for their response or else visit the concerned department.

taxindiaconnect

taxindiaconnect (Expert)
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19 October 2010 Please go and follow up with your jurisdictional AO for speady disposal of the application.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2010 sir as per interpretation of section 154(8), it should be presumed that if A.O. does not give rectification/refusal order within 6 months from the end of month in which app. is recd, then it is assumed to be in favour of assessee.

I have also personally consulted a tax expert. He also gave same interpretation as interpreted by me.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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22 October 2010 Sec 154(8) only says assessing officer has to pass a order within a period of six months

- making the amendment, or
- refusing to allow the claim.

but section doesnot provide , if both is not followed it will be assumed that order has been rectified as per your request.