Section 154 allows the Income Tax Authorities to amend, correct, ...

Wrong tax calculation rectified; AO's wide powers affirmed to amend orders for inadvertent mistakes.

Case Laws Income Tax

November 5, 2024

Section 154 allows the Income Tax Authorities to amend, correct, and pass orders notwithstanding anything in law, except matters already considered on appeal or revision. The Assessing Officer's powers are wide-ranging, allowing amendment of earlier orders suo motu or on rectification application. In this scrutiny case, the Assessing Officer could have examined the law and waived deductions from book profits for MAT liability calculation. The ITAT found the inadvertent mistake occurred due to misinterpretation and can be corrected u/s 154, as no new facts or accounts were introduced. The High Court held that the mistake arising from misinterpretation of law while filing the ITR can be rectified u/s 154, dismissing the Revenue's appeal.

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Section 154 allows the Income Tax Authorities to amend, correct, ...

Wrong tax calculation rectified; AO's wide powers affirmed to amend orders for inadvertent mistakes.

Case Laws Income Tax

November 5, 2024

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