rectification 154

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 i received intimation us 143 for demand of rs. 5000, no reason was shown for the demand i filled rectification us 154 and order has been passed for same demand reason has been given that depreciation schedule DEP was not given? can i fill again rectification us 154 after correcting the error?

CS Bijoy

CS Bijoy (Expert)
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06 July 2011 According to me once demand is made you have to reply for the demand and reason for the mistake taken place is to be shown, after receiving reason for the mistake if department felt it necessary than opportunity will be given to you.

Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2011 for ay 09-10 my business income is increased by rs.48910 and tax by 5000? reason given in the order against rectification is that depreciation is not shown in schedule DEP ? now the dep i have claimed is rs. 3053 ? so even if they disallow depreciation income should have increased by rs. 3053? and in my return schedule DEP is showing depreciation amount. now what should i do? again go for rectification but what should i rectify? or should go for appeal?
Thank you

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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20 July 2025 What to do next?
1. Understand the discrepancy in income increase (Rs. 48,910 vs Rs. 3,053):

There might be other issues besides depreciation causing the increase.
The department may have recalculated income differently.
Check if the department has combined depreciation disallowance with other adjustments.
2. Check your filed return and documents:

Verify if the Schedule DEP was properly filled and submitted.
Confirm if the return you filed included the depreciation claim correctly.
If the schedule was missing or incomplete, it could lead to disallowance.
3. Can you file another rectification under Section 154?

Section 154 rectification is only for “mistakes apparent from records”.
You can file rectification again only if you find an obvious error or omission in the return or the order.
If the issue is related to substantive correctness or different interpretation of facts, rectification is not the right remedy.
4. Should you appeal?

If you disagree with the disallowance or demand after rectification, the correct course is to file an appeal with the Commissioner of Income Tax (Appeals) within the prescribed time (usually 30 days from the date of the order).
Appeals are for factual or legal disputes, whereas rectifications are for clerical or procedural mistakes.

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