Re: Rectification Notices u/s 154 for several past years only for assessees who have some taxation case going on
Many of my clients have been getting ITR Rectification notices u/s 154 for almost all the past 8-10 assessment years for which assessment orders u/s 143(1) had already been issued and refunds received. The standard wordings in such notices are:
Dear Madam/Sir,
Subject: Status of your ITR filed with CPC for PAN xxxxxxxxx, Assessment Year xxxxxx
Ref: – E-Filing Acknowledgement Number xxxxxxx Dated xxxxxx.
Your return for the above mentioned assessment year will henceforth be rectified by your Assessing Officer xxxxxxxxx. You are requested to contact your Jurisdictional assessing officer for any rectification related issues.You may also log on to https://incometaxindiaefiling.gov.in and click on “Know your Jurisdictional AO” under”SERVICES” menu for further details.
Upon analysis, I find that these notices are being issued only for those assessees who have certain ongoing taxation disputes in various forums.
I don’t know if this is the case only with my clients, or is happening to other assesses as well across India. Be that as it may, what is the objective of these notices? Is it not pressure tactics / harassment of assessees and furthermore, goes against the stated objectives of the government of promoting faceless assessments and no physical face to face interactions with the Income Tax Officers, presumably to reduce harassment and corruption?
The matters are selected on the basis of computer system . Eg . in most of the charitable trusts deductions for application of income is not granted. As per law, a rectification can be made within 4 years from the end of the assessment year in which order was passed. However, 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) .
Each case will have to be decided on merits, with their respective set of facts. However, all assessments will have to done through the portal and calling an assesssee or its representative to meet the taxman defeats the purpose of faceless assessment.
My experience says that whenever reopening under section 148 or normal 143(2) are intended the above type things happens.FOR asst year 13-14 REOPENING the things were going OR DONE on 18 th march to 21st march BUT EMAILS AS ABOVE CAME IN MAY 2020.
HOWEVER THE GOOD THING APART FROM ABOVE IS the deptt is looking into appeal effect ,rectifications etc and such 154 is now transferred to AO from CPC.
SO IT IS BOTH WAYS.
Why is it considered a good thing by you that it’s transferred to AO from CPC? I thought it was not good really