Rectification u/s 154

The assessee is a public company and in the ITR6 for AY 17-18, there was a mistake in capital gains computation where COA was erroneously written as 1.40 crores instead of 1.14 crores. Due to b/f business losses, tax liability for the year was NIL and the error did not draw assessee's attention.

Subsequently, 143(3) order was passed where some additions were made on a different matter by AO. During assessment proceedings, Capital Gains was never a topic for consideration.

After indexation, the impact of the clerical error is huge.

Does this seem like a case where a rectification petition u/s 154(1) might lead to relief for assessee?
This is a mistake apparent from record but I am unsure if petition can be filed in the above circumstance.
What other avenues are available for relief in such a case?

Any help will be highly appreciated.

Replies (2)
Quick Summary
This discussion explores whether a rectification petition under Section 154 of the Income Tax Act can be used to correct a significant clerical error in capital gains computation for AY 17-18. Despite the error not impacting the tax liability at the time, its impact became substantial after indexation. The consensus is that such a mistake, being apparent from the record, is rectifiable under Section 154(1).

Yes recitifable under section 154
Yes
The mistake is apperant from records
Therefore petition can file for rerification under section 154.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details