Question And Answer
Subject: Is rectification order is valid after issuance of Form 5 of VSVS
Querist: Vikram
Answered by:
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Date: May 26, 2022
Query asked by Vikram

My assessee received Form No.5 of VSVS and afterwards in the Income Tax Department Internal Audit or AG Audit came and raised an objection regarding incorrect calculation of interest although completed through ITBA portal. Subsequently the AO issued notice u/s154 and passed order u/s154 raising the tax liability. Is this stand of the department is correct or challengeable in appeal or petition u/s264 may be filed or writ in HC may be filed.. Please suggest..

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If it is debatable issue , proposed action is not valid . It may be desirable to file writ before High Court .Refer T.S. Balaram, ITO v. Volkart Bros. ( 1971) 82 ITR 50 ( SC), Dinosaur Steels Ltd. v. JCIT (2012) 349 ITR 360/80 DTR 217/254 CTR 640 (SC). In Cooperative Rabobank U A v. CIT(IT) (2022) 284 Taxman 40 (Bom.)(HC) held that the interest granted under section 244A cannot be recovered by revenue authority under Direct Tax Vivad se Vishwas Act, 2020, by adding same to amount of disputed tax payable by assessee .

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