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Time limit for filing application u/s 54 of the Act

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PRABHAT KUMAR

78 Points Posted on 21 September 2023

Can we file rectification application under section 154 at any time or we need to file this application within 4 years from the end of relevant assessment year in which the order sought to be revised was passed??

please clarify, as I understand.. this time limit is for AO and not for us as Assessee.. Because Section 154(8) starts with "without prejudice to the above".

Replies (5)

Quick Summary

This discussion explores the time limit for filing a rectification application under Section 154 of the Act. The original poster questions whether the 4-year limit applies to assessees or only the Assessing Officer (AO), citing Section 154(8). A case study is presented where an AO rejected a rectification application filed 7 years after the order, deeming it time-barred, despite a Supreme Court ruling favouring the assessee. The consensus leans towards a time limit still existing for assessees, advising consultation with tax professionals.

sabyasachi mukherjee

Profession

19978 Points Posted on 22 September 2023

Pls upload the order. Rectification can be made , there are specific provisions.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 22 September 2023

For which AY ?

Reason for correction?

sabyasachi mukherjee

Profession

19978 Points Posted on 22 September 2023

Time limit for filing applicatio. under section 154 is still there.

PRABHAT KUMAR

78 Points Posted on 22 September 2023

In one group case, a survey was conducted under section 132 and after that block assessment was framed under section 153A for AY 1995-96 to 2001-02 in all the cases of that group. We approached Settlement Commission for all the group cases and AO passed the order giving effect to the settlement commission order in 2011 wherein the AO also levied surcharge. In 2014, the supreme court decided the identical matter and held that surcharge can't be levied in these cases but we forgot to file rectification application.

Finally, in 2018, we file the rectification application before the AO but the AO rejected the application stating that rectification right is barred by the limitation.

Is AO correct in his opinion??

Because, as I understand provision of subsection 8 of sec 154 supercedes the provision of 154(7).

please clarify.

thanks and regards,