Re: Rectification Applcation -S.154

The assessment order/intimation contains certain issues which are rectifiable under section 154 of the Act. A rectification application is filed before the AO but pending to be disposed off. In such a case, whether the tax liability can be rectified by the AO/ DA before computing the final amount payable under the scheme? Or the taxpayer will be required to pay whole amount computed as per the assessment order passed since rectification application is pending to be disposed?

FAQ 25 dt 4 March 2020 states that disputed tax liability be computed after taking into consideration the rectification order passed.  We believe that CBDT has given instructions to all the field officers to dispose of the rectification applications pending in case where VSV is opted.  In such situation, the disputed tax will be computed by DA, after giving effect to rectification order passed.  If no rectification order is passed, the taxpayer will be required to pay the whole amount.  The Appellant can follow up with the tax authority to get rectifications disposed off. 

 

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