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Regarding recovery made by ITO

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seema

nil

56 Points Posted on 14 May 2020

If once recovery following reassessment is made ,can after 6 years , other ITO charge interest mentioning that less interest was calculated by previous ITO?Is there no limitation period?

Replies (4)

Quick Summary

This discussion explores whether a successor Income Tax Officer (ITO) can charge interest years after an initial recovery, citing undercalculation by a previous ITO. While rectification orders are possible, there are limitations. Generally, such orders must be made within four years of the relevant financial year. The question arises whether this four-year limit applies even when recovery was made with interest on delayed payment under section 226(3), or if audit findings can override this.

rama krishnan

12244 Points Posted on 15 May 2020

Yes the successor ITO can pass rectification order after giving an opportunity to be heard if he finds that the interest has been under charged in the original assessment order. however limitations are there. the rectification order has to be passed within 4 years from the end of the relevant financial year during which the original order had been passed

seema

nil

56 Points Posted on 15 May 2020

In this case under section 226(3),recovery was made with interest on delayed payment .Does limitation of 4 year apply in this case too,apart from common assessment orders ?

seema

nil

56 Points Posted on 18 May 2020

@ Ramakrishnan Sir and other experts,pls throw some light as it is commonsense that none can keep looking into errors of self to create demand from anyone.