CA Nazia Shaikh (student) (174 Points)
05 November 2012Hi,
I have query as regards the following:
1)What is the difference between income tax notice and income tax order?
2)When is an order issued by income tax department?What is to be done on receiving an order?
3)What is rectification order u/s 154?When is it issued by CPC?
4)What is rectification of return?What is the time limit for rectification of return?
Shivashish
(Chartered Accountant)
(2796 Points)
Replied 05 November 2012
| Originally posted by : nazia | ||
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Hi, I have query as regards the following: 1)What is the difference between income tax notice and income tax order? 2)When is an order issued by income tax department?What is to be done on receiving an order? 3)What is rectification order u/s 154?When is it issued by CPC? 4)What is rectification of return?What is the time limit for rectification of return? |
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1. IT notice is always preceeds IT order. IT notice is issued so as to give the assessee a oppurtunity of being heard. For a notice a writ petition can be filed and no appeal is possible but against the order appeal can be filed before appealite authorities.
Further notice is issued to make a order of assesment. Without issuing notice, order is voide ab initio.
2. Order is issued after making an assessment(order u/s 143(3), 144, 147, 153A). Amount of assessment need to be paid within 30days of service otherwise interest and penalty are leviable.
3.Assesse can make a rectification for mistake apperant from record in orders issued by IT authorities. It can be made within four years from the end of financial year in which order sought to be rectified passed. Deptt can also use Sec.154 for their benefit of revenue.
4.Rectification of return is section 154 only.
For further refer VG sir book.
Thanks.
CA Nazia Shaikh
(student)
(174 Points)
Replied 07 November 2012
Thanks for the prompt reply but I still have a query:
1)Can a return be rectified on receiving rectification order u/s 154 only? or Can it be rectified even on receiving intimation u/s 143(1)
2)As per sec 154 : Assessee can move an application for rectification of an order within 4 years from the end of financial year in which the order sought to be amended was passed.The A.O gets the same time for initiating any rectification proceeding.It also says that the A.O has only 6 months to pass an order u/s 154 if the application is filed by assessee.
Please explain the above, if possible, with an example. What does "within 4 years from the end of financial year in which the order sought to be amended was passed" mean?
Shivashish
(Chartered Accountant)
(2796 Points)
Replied 07 November 2012
| Originally posted by : nazia | ||
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Thanks for the prompt reply but I still have a query: 1)Can a return be rectified on receiving rectification order u/s 154 only? or Can it be rectified even on receiving intimation u/s 143(1) 2)As per sec 154 : Assessee can move an application for rectification of an order within 4 years from the end of financial year in which the order sought to be amended was passed.The A.O gets the same time for initiating any rectification proceeding.It also says that the A.O has only 6 months to pass an order u/s 154 if the application is filed by assessee. Please explain the above, if possible, with an example. What does "within 4 years from the end of financial year in which the order sought to be amended was passed" mean? |
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Kindly note that we only make a application to IT authority, we cant rectify ourselve. We can only make application against the order of IT authority. We have a option to revise return, we cant rectify it.
Yes a rectification application can be made against a intimation u/s 143(1). It is actually a remedy available to assesse other than using appeal and revision.
For Ex. IT authority completed a assesment in which a expense was disallowed and later in a supreme court judgement the expense was allowed in some other case. So the assesse can move a rectification application against the order(within 4 years from end of FY in which such order was passed) requesting IT authority to allow the expense. The IT authority (within six months) pass a order rectifiying its order and allowing the expense.
The opposite if decided by S. court can be used by IT authority to disallow a claim and from which govt.(revenue) shall be benefited.
CA ANKIT GUPTA
(EXPERT )
(1995 Points)
Replied 09 January 2015
DEAR SIR
PLEASE TELL ME ONE MORE THING THAT , WHAT ARE THE CONSEQUENCES IF THE INCOME TAX AUTHORITY DOES NOT PASS RECTIFICATION ORDER WITHIN THE SPECIFIED PERIOD
CAN YOU PLEASE REFER ANY HIGH COURT AND SUPREME COURT CASES PERTAINING TO THE ISSUE CONCERNED
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