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Rectification

Neil (Accountant Assistant) (67 Points)

12 September 2015

If sumone get Intimation U/s 143, under which section one has to file rectification, so the changes in income can be allowed?

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9 Replies

S. Shiroor (Others) (1207 Points)
Replied 12 September 2015

Rectification is allowed for apparent mistakes such as wrong TAN no, Wrong amt provided in TDS, wrong BSR code etc. Rectifications are also allowed for 80G miss

if there is decrease in income or short claim in Deduction u/s 80C then you have to go to ur AO 1) show form 16 if u r salaried 2) show bank statements if u r professional.

and request him to permit you to file revised return.

Miss Rinkal (Student) (1304 Points)
Replied 12 September 2015

@ S. Shiroor:

No revised return can be filed after processing of return u/s 143

@ Neil:

Can you please provide the screen shot of the intimation recd as the question is not clear to me?

S. Shiroor (Others) (1207 Points)
Replied 12 September 2015

No -- Revised return under condonation as per circular 9/2015 dated 9/6/2015.

if a) is very small - file for rectification. otherwise apply for condonation.

Miss Rinkal (Student) (1304 Points)
Replied 12 September 2015

@ S. Shiroor:

Refer the circular that you have quoted

SECTION 119 OF THE INCOME-TAX ACT, 1961 - INCOME-TAX AUTHORITIES - INSTRUCTIONS TO SUBORDINATE AUTHORITIES - CONDONATION OF DELAY IN FILING REFUND CLAIM AND CLAIM OF CARRY FORWARD LOSSES UNDER SECTION 119(2)(b)

CIRCULAR 9/2015 [F.NO.312/22/2015-OT], DATED 9-6-2015

In supersession of all earlier Instructions/Circulars/Guidelines issued by the Central Board of Direct Taxes (the Board) from time to time to deal with the applications for condonation of delay in filing returns claiming refund and returns claiming carry forward of loss and set-off thereof under section 119(2)(b) of the Income-tax Act, (the Act) the present Circular is being issued containing comprehensive guidelines on the conditions for condonation and the procedure to be followed for deciding such matters.

2. The Principal Commissioners of Income-tax/Commissioners of Income-tax (Pr.CsIT/CsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims is not more than Rs.10 lakhs for any one assessment year. The Principal Chief Commissioners of Income-tax/Chief Commissioners of Income-tax (Pr.CCsIT/CCsIT) shall be vested with the powers of acceptance/rejection of such applications/claims if the amount of such claims exceeds Rs.10 lakhs but is not more than Rs. 50 lakhs for any one assessment year. The applications/claims for amount exceeding Rs.50 lakhs shall be considered by the Board.

3. No condonation application for claim of refund/loss shall be entertained beyond six years from the end of the assessment year for which such application/claim is made.This limit of six years shall be applicable to all authorities having powers to condone the delay as per the above prescribed monetary limits, including the Board. A condonation application should be disposed of within six months from the end of the month in which the application is received by the competent authority, as far as possible.

4. In a case where refund claim has arisen consequent to a Court order, the period for which any such proceedings were pending before any Court of Law shall be ignored while calculating the said period of six years, provided such condonation application is filed within six months from the end of the month in which the Court order was issued or the end of financial year whichever is later.

5. The powers of acceptance/rejection of the application within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsIT/CsIT in case of such claims will be subject to Following conditions:

i.		At the time of considering the case under Section 119(2)(b), it shall be ensured that the income/loss declared and/or refund claimed is correct and genuine and also that the case is of genuine hardship on merits.
ii.		The Pr.CCIT/CCIT/Pr.CIT/CIT dealing with the case shall be empowered to direct the jurisdictional assessing officer to make necessary inquiries or scrutinize the case in accordance with the provisions of the Act to ascertain the correctness of the claim.

6. A belated application for supplementary claim of refund (claim of additional amount of refund after completion of assessment for the same year) can be admitted for condonation provided other conditions as referred above are fulfilled. The powers of acceptance/rejection within the monetary limits delegated to the Pr.CCsIT/CCsIT/Pr.CsJT/CsIT in case of returns claiming refund and supplementary claim of refund would be subject to the following further conditions:

i.		The income of the assessee is not assessable in the hands of any other person under any of the provisions of the Act.
ii.		No interest will be admissible on belated claim of refunds.
iii.		The refund has arisen as a result of excess tax deducted/collected at source and/or excess advance tax payment and/or excess payment of self-assessment tax as per the provisions of the Act.

7. In the case of an applicant who has made investment in 8% Savings (Taxable) Bonds, 2003 issued by Government of India opting for scheme of cumulative interest on maturity but has accounted interest earned on mercantile basis and the intermediary bank at the time of maturity has deducted tax at source on the entire amount of interest paid without apportioning the accrued interest/TDS, over various financial years involved, the time limit of six years for making such refund claims will not be applicable.

8. This circular will cover all such applications/claims for condonation of delay under section 119(2xb) which are pending as on the date of issue of the Circular.

9. The Board reserves the power to examine any grievance arising out of an order passed or not passed by the authorities mentioned in para 2 above and issue suitable directions to them for proper implementation of this Circular. However, no review of or appeal against the orders of such authorities would be entertained by the Board.

There is nowhere in the circular mentioning revised return to be filed for any rectification after processing of return u/s 143

Please read section 139(5)

If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

From this it is very clear that revised return cannot be done if the same has been processed u/s 143

S. Shiroor (Others) (1207 Points)
Replied 12 September 2015

S.No 6 - supplimentary claim of refund (claim of additional amount of refund after completion of assessment for the same year) is accepted under condonation. In that case a revised return need to be filed.

Yesterday only i applied to AO for not taking L&T infra bonds which I missed to take u/s 80CCF for AY 2012-13. AO saw the application and told to give it in Aayakar seva kendra.

Miss Rinkal (Student) (1304 Points)
Replied 12 September 2015

I don't agree. Although you can make an application in writing to the ao for considering the rectification of mistakes but there is no way that you are supposed to revise the return.

Definitely you can approach the AO and ask for the rectification of mistakes made in return but you cannot revise the return

And sr. No 6 is of making an application not a revise return.

S. Shiroor (Others) (1207 Points)
Replied 12 September 2015

Yes s.no 6 is just an application. But there are instances where court has ruled that revised return can be filed after getting 143(1)

1) Calcutta HC- Intimation us 143(1) of Income tax Act 1961 is not completion of assessment us 139(5) preventing assessee filing a revised return of income |26-01-2015| -

Case Details:
TATA METALIKS LTD. (appellant) Versus C.I.T III, KOLKATA (Respondent)
ITA No. 301 of 2005
Date : 22nd September, 2014. -

2) Revised Return can be filed even after receiving intimation U/s. 143(1)

HIGH COURT OF PUNJAB AND HARYANA

Tarsem Kumar

versus

Income-tax Officer

CWP NO. 19906 OF 2011

JULY 30, 2012

3) The said question stands answered by the Hon’ble Apex Court in Asstt. CIT v. Rajesh Jhaveri Stock Brokers (P.) Ltd. [2007] 291 ITR 500

S. Shiroor (Others) (1207 Points)
Replied 12 September 2015

@ neil read this

https://taxmantra.com/revise-or-rectify-clarifications.H T M L/.

Miss Rinkal (Student) (1304 Points)
Replied 13 September 2015

OK . thanks S.Shiroor for your valuable input. Though 143(1) is referred as summary assessment, one can conclude that revised return can be file u/s 139(5). However it should be filed within the time limit prescribed u/s 139(5). i.e. before 1 year from the end of relevant AY or before completion of assessment whichever is earlier