Re: Demand raised u/s 154 after issuance of form no. 5 under VSV Scheme

Sir, in my case form 5 has been issued by CIT, thereafter i received a notice from department for rectification u/s 154 for enhancement of tax and interest on the mistake apparent from record. Mistake pointed out by department is correct. Can the department enhance the demand after issuance of form no. 5 ? Kindly assist. A quick response is highly appreciable.

Any Authority which has passed the order  has  inherent  power to rectify the mistake apparent from the record . When  the Act does not prescribe any time limit to pass the rectification order ,  it has to be within  a reasonable time   The error has to apparent from record.   Debatable issues cannot be rectified as held by the Supreme Court in T.S.Balaram , ITO v. Volkart Bros (1971) 82 ITR 50 (SC) .

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