revised return or Sec 154 rectification

Pankaj Arora (Learner) (3134 Points)
Replied 17 January 2011

If this mistake is done by than go to rectifiable u/s154. Otherwise revise your return.

Rajesh (student) (76 Points)
Replied 17 January 2011

Sec 154 relates to rectification of mistakes made by income tax authority. so i think u need to file revised return. Time limit for revised return is one year from the end of A.Y

Ravindra Manek (Chartered Accountant) (74 Points)
Replied 17 January 2011

Return u/s. 139(5) can be revised before completion of assessment or within 1 year from the end of the respective assessment year whichever is earlier. Intimation u/s. 143(1) is not deemed to be completion of assessment and hence return can be revised even after receipt of intimation u/s. 143(1). Return can be revised for any omission or wrong statement in the original return filed.

Application for Rectification of mistake u/s.154 is made for rectifying mistakes apparent from the record and mistake should not be such which require detailed scrutiny of the records. It must be patent and clearly apparent. Moreover this application can be made for mistakes made by assessee as well as by department.

In this case as profit as per P & L A/c was mistakenly shown to be 11 Lac. I presume, it can be either arithmetic error or some expenditure might not have been disclosed. If it is arithmetic error, 154 may be proceeded but this doesn't seem to be the case. Hence in other situation (ie expenditure not disclosed/shown fully), it can't be termed as mistake apparent from the record (but omission - one of the criteria for revised return).

Hence in this situation better alternative seems to file revised return. However, according to me, first of all it would be better to find out root cause of this mistake and then act accordingly.

1 Like

vinayak (article clerk) (62 Points)
Replied 18 January 2011

Go For Rectification u/s 154 of Income Tax Act, 1961.

priyanka*** (IPCC) (120 Points)
Replied 18 January 2011

thanks for the post

and clarifying in detail

But i have dought if when there is challan payable

and if it is already paid but the intimation U/s 143(1) received as not paid can we do rectify

u/s 154 through online

please clear the dought

thanks in advance

K D Sharma (Prop) (43 Points)
Replied 19 January 2011

Dear Sir,

I,have filed return online for the assessment year 2009.10 on Dtd.15.03.2010 and got intimation U/s 143(1) with demand, due to depreciation debited to profit and loss account omitted , can I file revised return U/s 154 rectification online or should I file return without choosing revised return option please tell me.

Regards

K D Sharma

kds70 @ rediffmail.com

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 19 January 2011

Originally posted by : priyanka***
	thanks for the post and clarifying in detail But i have dought if when there is challan payable and if it is already paid but the intimation U/s 143(1) received as not paid can we do rectify u/s 154 through online please clear the dought thanks in advance

revise the return 1st, u may have to go in appeal after filing the revised return as the assessment is already done on the basis of your return submitted.

priyanka*** (IPCC) (120 Points)
Replied 19 January 2011

@ U S SHARMA

thank u sir

priyanka*** (IPCC) (120 Points)
Replied 19 January 2011

@ K D Sharma

sir

section 154 indicates mistakes done by the income tax authority so we can rectify it through 154 section

but the is ommission of depreciation it does not comes under section 154

there fore it needs to revise the return

please correct it if i am wrong

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 19 January 2011

Here you will have to file revised return as the original return contains a mistake and there is no mistake from record. So you will have to file revise return. Also assessment has not been completed by issue of intimation as mentioned by U S Sharma as it has been decided by the Honourable Gujarat High Court in S. R. Koshti v/s. CIT (2005) 146 Taxman 335 (Guj) that “Assessment” refers to the assessment made under Section 143 (3) or 144. Intimation served to the assessee under section 143(1) will not constitute an “assessment”. Consequently, if an assess files a revised return after service of intimation under section 143(1) (but before the time above) it should be duly considered by the Assessing Officer.

priyanka*** (IPCC) (120 Points)
Replied 19 January 2011

actually self assessment tax challan is paid with in the due date ie., on 31/7/2010

but the intimation does not taken in to account

ca rajesh sharma (chartered accountant & taking coaching class) (40 Points)
Replied 02 March 2011

i AM AGREE WITH MR. RAVINDRAG. IN ONE OF THE MATTER I SELECT ROOT OFSECTION 154. SO FIRST DECIDE THE CAUSE THAN TAKE APPROPRIATE STEP.

Return u/s. 139(5) can be revised before completion of assessment or within 1 year from the end of the respective assessment year whichever is earlier. Intimation u/s. 143(1) is not deemed to be completion of assessment and hence return can be revised even after receipt of intimation u/s. 143(1). Return can be revised for any omission or wrong statement in the original return filed.

Application for Rectification of mistake u/s.154 is made for rectifying mistakes apparent from the record and mistake should not be such which require detailed scrutiny of the records. It must be patent and clearly apparent. Moreover this application can be made for mistakes made by assessee as well as by department.

In this case as profit as per P & L A/c was mistakenly shown to be 11 Lac. I presume, it can be either arithmetic error or some expenditure might not have been disclosed. If it is arithmetic error, 154 may be proceeded but this doesn't seem to be the case. Hence in other situation (ie expenditure not disclosed/shown fully), it can't be termed as mistake apparent from the record (but omission - one of the criteria for revised return).

Hence in this situation better alternative seems to file revised return. However, according to me, first of all it would be better to find out root cause of this mistake and then act accordingly.

hema bhanushali (staff) (28 Points)
Replied 15 June 2012

If refund not claimed in return & no scope for revised return because of expiry of time limit than can refund be claimed through rectification u/s 154?