February 15, 2016

CBDT vide Instruction No. 02/2016  dated 15-02-2016 issues direction that all rectification applications must be disposed of after passing an order in writing, to be duly served upon the taxpayer concerned and not by merely making necessary rectification on the AST System.

Further CBDT also directed to department officers vide Instruction No. 01/2016 dated 15-02-2016 that Prescribed time-limit of 6 months in passing order u/s 154(8) of Income-tax Act, 1961 to rectify any mistake apparent from record must be followed strictly.

 

Instruction No. 01/2016

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi, the February 15, 2016

Subject: Following the prescribed time-limit in passing order under sub-section (8) of section 154 of Income-tax Act, 1961-regd.

Sub-section (8) of section 154 of the Income-tax Act, 1961 (‘Act’) stipulates that where an application for amendment is made by assessee/deductor/collector with a view to rectify any mistake apparent from record, the income-tax authority concerned shall pass an order, within a period of six months from the end of the month in which such an application is received, by either making the amendment or refusing to allow the claim. It has been brought to the notice of the Board that the said time-limit of six months has not been observed in deciding some applications. In such cases, the field authorities often take a view that since no action was taken within the prescribed time-frame, the application of the taxpayer is deemed to have lapsed, thereby not requiring any action.

The matter has been examined by the Board. In this regard, the undersigned is directed to convey that the aforesaid time-limit of six months is to be strictly followed by the Assessing Officer while disposing applications filed by the assessee/deductor/collector under section 154 of the Act. The supervisory officers should monitor the adherence of prescribed time limit and suitable administrative action may be initiated in cases where failure to adhere to the prescribed time frame is noticed.

The contents of this Instruction may be brought to the notice of all for necessary compliance.

Hindi version to follow.

(Rohit  Garg)

Deputy Secretary to the Government of India

(F. N o. 225/305/2015-ITA.II)

Instruction No. 02/2016

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi, the February 15, 2016

Subject: Passing rectification order under section 154 Income-tax Act, 1961 regd.

Instances have come to the notice of the Board that in some cases rectification order under section 154 of the Income-tax Act, 1961 (‘Act’) is being passed by the Assessing Officer on AST System without giving copy of the order to the taxpayer concerned. This is causing grievance to the taxpayers as they remain unaware of such orders and consequentially, are unable to pursue the matter further, either in appeal or rectification, if required.

2.Sub-section (4) of section 154 of the Act mandates that rectification order shall be passed in writing by the Income-tax authorities. Therefore, on consideration of the matter, the Board hereby directs that all rectification applications must be disposed of after passing an order in writing, to be duly served upon the taxpayer concerned and not by merely making necessary rectification on the AST System.

3.The contents of this Instruction may be brought to the notice of all for necessary compliance.

4.Hindi version to follow.

(Rohit Garg)

Deputy Secretary to the Government of India

(F. No.225/305/2015-ITA.II)

 

Source Documents:

http://irsofficersonline.gov.in/Documents/OfficalCommunique/1215201625246.pdf

http://irsofficersonline.gov.in/Documents/OfficalCommunique/1215201625121.pdf