rectification of mistake u/s. 154

This query is : Resolved 

Querist : Anonymous (Querist) 05 May 2011

Assessee has filed income tax return for A.Y. 2009-10 eloctrinically. The CPC has sent intimation u/s. 143(1) adding loss on account of derivative transactions in share market on the ground that in shedule P & L the amount of loss was shown under other income with (-) negative signas there is no column for showing loss in derivative business seperately. Thus inflating income by double the loss amount. The software accepted negative figure. It was shown just to be trnsparent.The assessee had applied for rectification u/s. 154 to CPC Banglore through speed psot with all the necessary proofs as at that time there was no window open for rectification online. Recently, the assessee recd order from CPC stating that the application is rejected as the system has correctly calculated loss as income because only positive income was to be reported in the column other income. The assessee sought clarification on toll free number and explained the position. The learned officer requested that an online application u/s. 154 is to be filed after a week to pass the rectification order, if any.

Can the assessee file another application u/s. 154? If yes, will it be prejudicial to his interest if the application is rejected again? Or should he file and appeal u/s. 246A to CIT (A) simultaneously?

Amol Gopal Kabra (CA,CS,DISA) (Expert)

07 May 2011

No need to file appeal immediately. You file the Online Rectification Application u/s 154.

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

close x
Get Income Tax App    |    x