Court directed the Assessing Officer to dispose of the assessee’s rectification application under Section 154 within six weeks from the date of the Court’s Order. 

Court directed the Assessing Officer to dispose of the assessee’s rectification application under Section 154 within six weeks from the date of the Court’s Order. 

 1,107 total views

Court directed the Assessing Officer to dispose of the assessee’s rectification application under Section 154 within six weeks from the date of the Court’s Order. 

Though the rectification application has to be disposed off within 6 weeks of its receipt, there are various cases where AO fails to do the task in a time bound manner. Almost every court in such a case, ensure that the sams is done by the AO.
Here is one case before Delhi HC wherein court directed to dispose off the Section 154 recitification within 6 weeks.
Though no cost was imposed in this case, there are every chance that the court may impose the cost on the AO if such instances are repeated.
Let us have a look at the copy of the Delhi HC Order:
 
Delhi High Court
Nortel Networks India International INC.
Vs
Assistant Director of Income Tax (CPC)

 

  1. By way of the present writ petition, Petitioner seeks directions to the Respondent No. 2 to dispose of within four weeks, Petitioner’s Rectification Application dated 14th May, 2020 granting the consequential TDS credit of Rs.5,51,15,908 due to the petitioner and deleting the incorrect demand of Rs.6,97,16,942 which only arises due to non-grant of the said TDS credit.
  2. Learned Counsel for the Petitioner states that the Respondents No.2 has failed to dispose of Petitioner’s Rectification Application dated 14th May, 2020 for the Assessment Year 2018-19 within the period of limitation provided in Section 154(8) of the Income Tax Act, 1961 (which lapsed on 31st March, 2021). He states that as a result of the inaction of the Respondent No.2, TDS credit of Rs.5,51,15,908 remains disallowed to the Petitioner and a patently incorrect demand of Rs.6,97,16,942 (Rs. 5,51,15,908 plus interest of Rs.1,46,01,034) stands raised. He also relies on the CBDT Circular No.14/2001 read with the CBDT Instruction No. 1/2016 which mandates Respondent No.2 to strictly comply with the statutory limitation provided in Section 154(8) of the Act in disposing of the Petitioner’s Rectification Application.
  3. In support of his contention, learned counsel for the Petitioner relies on the decision of this Court in LS Cable and System Ltd. V. UOI, W.P. (C) 5154/2020 wherein in similar facts, this Court directed the Assessing Officer to dispose of the assessee’s rectification application under Section 154 within six weeks from the date of the Court’s Order.
  4. Issue notice. Mr. Zoheb Hossain, learned counsel for Revenue accepts notice. On instructions, he undertakes to this Court that Petitioner’s rectification application dated 14th May, 2020 shall definitely by disposed of within six weeks. The undertaking given by Mr. Zoheb Hossain, learned counsel for Revenue is accepted by this Court and respondents are held bound by the same.
  5. In view thereof, the present writ petition along with application stands disposed of.
  6. List the matter for compliance on 12th January, 2022.
  7. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving