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Query asked by Jigar on November 22, 2020

Re: Rectification

If the Assessing Officer fails to rectify error apparent on record, whether a writ can be preferred on the premise that no alternate efficacious remedy is available and the assessee will not be able to file VSVS application if rectification is not permitted.

What would be the answer in case, the rectification is summarily disposed off

An appeal is pending before CIT(A), however, the AO did not rectify a mistake apparent on record.

As per FAQ 25 of CBDT Circular No. 9 of 2020 dated April 22, 2020, where the rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the income and tax liability of the assessee as a result of rectification. The disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any.  If the AO is not passing the rectification  order, the assessee can file the  writ petition , with the prayer an disposal of rectification application, High Court  may direct the AO to pass order at the earliest .   

However, in case of an adverse order under section 154 of the Act, the assessee has no recourse, apart from settling the appeal pending before CIT(A). VSVA is a scheme for declaration and the merits are not taken into consideration.

An appeal is pending before CIT(A), however, the AO did not rectify a mistake apparent on record.

As per FAQ 25 of CBDT Circular No. 9 of 2020 dated April 22, 2020, where the rectification order passed by the AO may have an impact on determination of disputed tax, if there is reduction or increase in the income and tax liability of the assessee as a result of rectification. The disputed tax in such cases would be calculated after giving effect to the rectification order passed, if any.  If the AO is not passing the rectification  order, the assessee can file the  writ petition , with the prayer an disposal of rectification application, High Court  may direct the AO to pass order at the earliest .   

However, in case of an adverse order under section 154 of the Act, the assessee has no recourse, apart from settling the appeal pending before CIT(A). VSVA is a scheme for declaration and the merits are not taken into consideration.


 

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