CBDT Instructs passing of Rectification Orders under S.154 in writing

CBDT Instructions for Passing of Rectification Orders under S.154 of Income Tax in writing

The CBDT has directed 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, as under:

CBDT Instruction 2/2016 dt 15th Feb 2016

1. 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.

CBDT Instruction 2/2016 dt 15th Feb 2016

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