Rectification u/s 154 without careful consideration of the facts and circumstances of the case, and the basic issue whether section 154 could be invoked at all

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..... to objections raised by the Revenue Audit as well as Internal Audit, sufficient care is not sometimes taken. In most of the cases the assessments are being rectified u/s 154 of I.T. Act, 1961, without careful consideration of the facts and circumstances of the case, and the basic issue whether section 154 could be invoked at all. Section 154 can be invoked only for rectifying mistakes "apparent fr .....

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..... be a valid ground. There are conflicting High Court decisions on the issue whether information derived from the scrutiny note of the Audit is sufficient information to uphold action u/s. 147(b), and the matter is before the Supreme Court for final adjudication. 3. A safe remedy in cases where the assessments have not been subjected to appeal is intervention by the CIT under section 263, if there .....

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..... le, adverse notice should be taken. The IACs (Audit), while processing the replies to Revenue Audit objections, should also apply their mind to the correctness of the remedial measures taken by the ITOs. 5. What has been stated above with regard to remedies under the I.T. Act applies mutatis mutandis to other direct taxes statutes also. These instructions may be brought to the notice of all offi .....

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