9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (4) TMI 1174 - HC - Income TaxRectification of mistake u/s 154 - amount relating to contingent liability amount been admittedly mentioned in Form 3CD but under the head Amount in Income Tax Returns , the figure of 0 is shown, instead of actual figure. - HELD THAT - We observe from petition which contains an electronic dialogue on the Income Tax Portal between the Income Tax department and Petitioner with respect to the purported inconsistency with respect to the sum of Rs.42,94,12,920/- which the petitioner has disagreed with the following remarks The proposed adjustment is incorrect. The proposed amount of Rs.42,94,12,920/- is already disclosed in Form 3CD clause 21(g) and also disallowed in the ITR computation refer Schedule BP Sr no 23. As observed from the rectification order dated 22nd November 2022 under Section 154 of the I.T.Act that is submitted on behalf of the petitioner, there is a figure of 0 in the Amount in the Income Tax Returns instead of the said figure of Rs.42,94,12,920/-. In our view, this is an exfacie error which deserves to be rectified. We direct the respondent no.1 Centralized Processing Centre to consider the application of the petitioner for rectification in the light of the above discussion, within a period of three months.
Issues:
Rectification application under Section 154 of the Income Tax Act, 1961 - Contingent liability disclosure discrepancy - Adjustment under Section 143(1)(a) of the I.T. Act - Correct reflection of amount in Income Tax Returns - Response consideration by Income Tax department - Rectification order error correction. Analysis: The petitioner filed a petition seeking a writ to quash an intimation dated 14 November 2022. However, during the hearing, the respondent processed the rectification application under Section 154 of the Income Tax Act and granted relief regarding the refund sought. The issue arose concerning a contingent liability of Rs.42,94,12,920, disclosed in Form 3CD but not reflected in the rectification order dated 22nd November 2022 under Section 154 of the I.T. Act. The petitioner's counsel highlighted that the amount should have been correctly reflected in the Income Tax Returns to avoid proposed adjustments under Section 143(1)(a) of the I.T. Act. The counsel pointed out the department's failure to consider the response received from the assessee before making the adjustment, as required by the second proviso to Section 143(1)(a) of the I.T. Act. The petition included an electronic dialogue showing the petitioner's disagreement with the proposed adjustment, stating that the amount was already disclosed in Form 3CD and disallowed in the ITR computation. The rectification order also erroneously showed a figure of "0" instead of the correct amount of Rs.42,94,12,920 in the "Amount in the Income Tax Returns." The court noted this as an error that needed rectification. Consequently, the court directed the respondent - Centralized Processing Centre to review the petitioner's rectification application within three months and issue a detailed order regarding the amount of Rs.42,94,12,920. In conclusion, the court disposed of the petition with the above directions, emphasizing that no costs were to be incurred.
|
