Income Tax

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S.Jegadeesan (Querist)
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17 February 2020 Sir
Pl clarify the following

1.The ITO has issued notice to banker to attach the bank account within 15 days from the date of order Issued U/s 143(3) . Is it legally valid ? Since I think we have time to rectify the order within 4 years from the date of order issued U/s 143(3) Further we can also prefer an appeal. Then how can the AO issue attachment notice within such short period? Whether there is any provision like that ?

2. Further can I rectify the order U/s 154 if the AO did not consider part of reply/evidence/documents during the course of assessment?

3.Can I file rectification petition against the order issued U/s 143(3) , if the AO did not allow the time to produce the documents during the course of assessment?

Zeal Bangdiwala

Zeal Bangdiwala (Expert)
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17 February 2020 1. Firstly the AO cannot issue the bank a letter to attach the bank account within 15 days of order u/s 143(3). If any demand is raised by an order passed u/s 143(3) then it has to be paid within 30 days from the date of service of Notice of demand u/s 156. Till the expiry of such 30 days AO cannot proceed for any recovery proceedings.

2 & 3. Where adequate opportunity is not provided to furnish the documents/information than it is advisable to filed an appeal rather than going for rectification application as the AO will not entertain such rectification application against his own order. Further Rectification can be filed only when there is an error apparent from record. The non consideration of submission/documents is a subject matter of litigation. Hence it is advisable to file an appeal before the CIT(Appeaal) rather than any rectification application/petition.

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