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154 petition disposal

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)

26 April 2013

Friends,

As per section 154(8) the petition for rectification of Order has to be disposed by AO within 6 months when assessee files the same. What do you do when the AO is not complying with the time limit given in the Act 1961.

Do you have any remedy.

Regards,

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4 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 26 April 2013

I think in that case, it is deemed that the order is passed in the favour of ASSESSEE.

Please correct me if I am wrong.

Waiting for other expert's replies as well.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 26 April 2013

Thanks Sumit for your response. In fact I have learnt many points from You on various fronts.

No, not necessarily the order is in taxpayer's favour. The AO has granted less TDS credit though the same is available in 26AS and also claimed in the ITR. The assessee did not opt for appeal to CIT (A) as it is a mistake apparent from Record.

Regards,

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 26 April 2013

It shall be deemed that AO has accepted the applicaiton & granted in favour of assessee.

That is, the TDS credit shall be allowed now, after the expiry of the aforesaid 6 months.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 27 April 2013

But Sumit, if that be the case due to grant of TDS credit now after 6 months on a 'deeming' fiction there is an increase of refund than the amount of refund in the Order under 143(3). Naturally, the AO is not giving the balance Refund.

So, one cannot really conclude that he has acted on 154 petition and passed it on a deeming basis by allowing the differential TDS .

Any further thoughts.

Regards,