section 154

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Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 Sir I had applied for rectification u/s 154 for an assessee. There has been no response from department regarding the application. More than 6 months have passed.
I want to ask that is there any provision in income tax that if rectification order not passed within 6 months then it will be deemed to be in favour of the assessee.
Plz reply asap.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

18 October 2010 No there is no such provision. I have also applied for rectification u/s 154 and in many cases no response has been received for more than a year. Just wait for their response or else visit the concerned department.

taxindiaconnect

taxindiaconnect (Expert)

19 October 2010 Please go and follow up with your jurisdictional AO for speady disposal of the application.

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2010 sir as per interpretation of section 154(8), it should be presumed that if A.O. does not give rectification/refusal order within 6 months from the end of month in which app. is recd, then it is assumed to be in favour of assessee.

I have also personally consulted a tax expert. He also gave same interpretation as interpreted by me.

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

22 October 2010 Sec 154(8) only says assessing officer has to pass a order within a period of six months

- making the amendment, or
- refusing to allow the claim.

but section doesnot provide , if both is not followed it will be assumed that order has been rectified as per your request.

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