CHANGE IN TOTAL INCOME- RECTIFICATION U/ S 154

Dear sir/ madam
While filing ITR for the FY 2017-18 my client claimed depreciation on computers @ 60% instead of 40% .
He selected wrong code for the nature of budiness(power sector) actually they are doing towers construction work.
Hence the CPC has rejected demand and added back to total income.
Now I am trying to file RECTIFICATION U/s 154 the gross total income has increased by Rs. 11,779 ,but it's showing error and indicates total income should not change.


can we file rectification u/s 154 by increasing the total income?
if yes what's the point we have to select?
thank you
Replies (3)
Quick Summary
A user is seeking advice on filing a rectification under Section 154 of the Income Tax Act to correct an error in their client's FY 2017-18 ITR. The client incorrectly claimed 60% depreciation on computers and selected the wrong business code, leading to CPC rejecting the demand and adding back to total income. The user is encountering an error when trying to file the rectification because the system indicates total income should not change, despite a Rs. 11,779 increase. Advice suggests that a revised return under 154 cannot change income and recommends contacting the regional tax department or filing under Section 264 for bonafide mistakes.

Revised return under 154 cannot be filed if it:
1) It changes Income
2) To Claim Chalter VI deduction
You have to talk to your regional Tax dept officer, only he can help you.
Better option is to file a return under sec 264 as it a case of bonafied mistake apparent from the record.
Mr. Naidu



1. clarify these have u received a notice where the AO has denied to accept your return.
It can be a notice u/sec 143 or notice u/sec 154.
Then either you can respond to the notice.
But as per your query you hv not mentioned about the notice.
Agree with Ayush

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