Revisions and rectifications under income tax act

Objectives & Agenda :

This webinar shall throw some with regards to the revision and rectification of orders passed by the income tax authorities. It shall look upon the orders which cannot be revised. This webinar shall also explain the procedure involved in the revision of an order.

1. Rectifications and Revisions under Income Tax Act CA. Jugal Gala

2. Credits and Acknowledgments Anand N Krishna

3. Legends used in the Presentation ACIT Assistant Commissioner of Income Tax AO Assessing Officer AY Assessment Year Board Central Board of Direct Taxes CIT(A) Commissioner of Income Tax (Appeals) DCIT(A) Deputy Commissioner of Income Tax (Appeals) FY Financial Year HC High Court ITAT Income Tax Appellate Tribunal ITO Income Tax Officer JCIT Joint Commissioner of Income Tax NTT National Tax Tribunal SC Supreme Court TCS Tax Collected at Source TDS Tax Deducted at Source

4. Presentation Schema

5. Introduction

6. Rectifications

7. Rectification of Mistake – 154(1) Any order passed by it Intimation or deemed intimation under section 143(1) – Summary Assessment Intimation with regards to processing of statements of TDS or TCS The Income Tax Authorities may amend the following order or intimations with a view to rectify any apparent mistakes: If any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order, then the authority may amend the order in relation to any matter other than the matter which has been already considered and decided – Sec 154(1A)

8. Amendment of Orders – 154(2)

9. Notice to Assessee – 154(3) 154(4) – A writing order shall be passed to give effect of amendment 154(5) – If an amendment has the effect of reducing the assessment or reducing the liability of the assessee, deductor or collector, the AO shall grant refund which shall be due consequent to amendment

10. Demand Notice – 154(6) The notice of demand under section 156 shall be in Form No. 7 Form No. 28 – in case of payment of advance tax by the assessee on its own or in pursuance of order of AO

11. Time Limit – 154(7) No amendment shall be made after the expiry of 4 years from the end of the FY in which the order sought to be amended was passed.

12. Filing for Rectification Login to E-filing website – www.incometaxindiaefiling.gov.in Select Rectification under e-file

13. Contd.. Select order to be rectified and the corresponding AY

14. Contd.. Select Request Type Fill in the details and click Submit

15. Revision of Orders Prejudicial to Revenue

16. Examination of Orders – 263(1) the order is passed without making inquiries or verification which should have been made the order is passed allowing any relief without inquiring into the claim the order has not been made in accordance with any order , direction or instruction issued by the Board under section 119 (Instruction to subordinate authorities) the order has not been passed in accordance with any decision which is prejudicial to the assessee , rendered by the jurisdictional HC or SC in the case of the assessee or any other person An order passed by the AO shall be deemed to be erroneous and prejudicial to the interests of the revenue, if, in the opinion of the PCIT or CIT,

17. Orders Covered Assessment order made by the ACIT or DCIT or ITO on the basis of the directions issued by the JCIT under section 144A (Powers to issue direction in certain cases); Order made by the JCIT authorised by the Board under section 120 (Jurisdiction of Income Tax Authorities) “Record" shall include all records relating to any proceeding available at the time of examination by the PCIT or CIT If any order passed by the AO had been the subject matter of any appeal filed, then the powers of the PCIT or CIT can extend only to such matters which had not been considered and decided in such appeal

18. Time Limit – 263(2) and (3) No order shall be made after the expiry of 2 years from the end of the FY in which the order sought to be revised was passed However, an order may be passed at any time to give effect to finding or direction contained in an order of the ITAT, NTT, the HC or the SC In computing the period of limitation , the following shall be excluded :- Time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 (Change of incumbent of an office) and any period during which any proceeding under this section is stayed by an order or injunction of any court

19. Revision of Other Orders

20. Revision by PCIT or CIT – 264(1) 264(2) - PCIT or CIT shall not of his own motion revise any order under this section if the order has been made prior to more than 1 year Explanation 1: An order by the PCIT or CIT declining to interfere shall be deemed not to be an order prejudicial to the assessee

21. Orders not Revisable – 264(4)

22. Application for Revision – 264(3) An application for revision by the assessee must be made earlier of: 1 year from the date on which the order in question was communicated to him the date on which he otherwise came to know of it OR PCIT or CIT may admit an application made after the expiry of the period if satisfied that the assessee was prevented by sufficient cause from making the application within that period 264(5) - Every application by an assessee for revision under this section shall be accompanied by a fee of Rs. 500 Explanation: In computing the period of limitation , the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 (Change of incumbent of an office) and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded

23. Time Limit – 264(6) On every application by an assessee for revision, an order shall be passed within 1 year from the end of the FY in which such application is made by the assessee for revision An order may be passed at any time to give effect to finding or direction contained in an order of the ITAT, NTT, the HC or the SC In computing the period of limitation , the following shall be excluded :- Time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 (Change of incumbent of an office) and any period during which any proceeding under this section is stayed by an order or injunction of any court

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