INCOME TAX ACT, 1961

Section 154

Rectification under section 154 - Deduction under section 80P - Mistake apparant -

Assessee-society claimed deduction under section 80P. AO completed the assessment under section 143(3) disallowing eligible deduction under section 80P(2)(a)(i). Assessment was done against the judgment of this Court in ITA.No.212/2013 dated 15-2-2016. Assessee filed statutory appeal challenging assessment order which was allowed by Tribunal allowed the appeal by granting deduction under section 80P(2)(d)(a)(i). Thereafter, Revenue suo-motu initiated rectification proceedings under section 154 stating that there was apparent mistake. Assessee filed objection that a co-operative society, irrespective of its classification or nomenclature, is eligible for deduction under section 80P. But, without considering any of the objections raised by assessee, rectification petition was allowed. Aggrieved by order, assessee filed petition for rectification of mistake under section 154 which was pending before Tribunal. Held: Rectification applications as would be taken up for consideration by Revenue without much delay, and affording reasonable opportunity of being heard to assessee through authorised representative, if any, might pass orders thereon without much delay preferably, until orders were passed, further coercive steps for enforcement of the orders should be kept in abeyance by authority concerned.

REFERRED : Chirakkal Service Co-operative Bank Ltd. v. CIT (2016) 384 ITR 0490 (Ker) : 2016 TaxPub(DT) 1770 (Ker-HC)

FAVOUR : In assessee's favour

A.Y. :

SUBSCRIBE FOR FULL CONTENT