Amendment of section 154.
67. In section 154 of the Income-tax Act, with effect from the 1st day of July, 2012,—
(a) in sub-section (1), after clause (b), the following clause shall be inserted, namely:—
“(c) amend any intimation under sub-section (1) of section 200A.”;
(b) in sub-section (2), in clause (b), for the words “by the assessee”, the words “by the assesse or by the deductor,” shall be substituted;
(c) in sub-section (3), for the words “the assessee”, wherever they occur, the words “the assesse or the deductor” shall respectively be substituted;
(d) for sub-section (5), the following sub-section shall be substituted, namely:—
“(5) Where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor, the Assessing Officer shall make any refund which may be due to such assessee or the deductor.”;
(e) in sub-section (6), for the words “already made, the Assessing Officer shall serve on the assessee”, the words “already made or otherwise increasing the liability of the assessee or the deductor, the Assessing Officer shall serve on the assessee or the deductor, as the case may be” shall be substituted;
(f) in sub-section (8), for the words “by the assessee”, the words “by the assessee or by the deductor” shall be substituted.
Notes on Clauses:
Clause 67 of the Bill seeks to amend section 154 of the Income-tax Act relating to rectification of mistake.
It is proposed to insert a new clause (c) in sub-section (1) of the aforesaid section so as to provide that an income-tax authority may amend any intimation issued under sub-section (1) of section 200A.
It is further proposed to amend sub-section (2) of the aforesaid section so as to substitute the words “by the assessee” with the words “by the assessee or by the deductor”.
It is also proposed to amend sub-section (3) of the aforesaid section so as to substitute the words “the assessee”, wherever they occur, with the words “the assessee or the deductor”.
The existing provisions of sub-section (5) of the aforesaid section provide that subject to the provisions of section 241, where any such amendment has the effect of reducing the assessment, the Assessing Officer shall make any refund which may be due to such assessee.
It is proposed to substitute the aforesaid sub-section so as to provide that where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor, the Assessing Officer shall make any refund which may be due to such assessee or the deductor.
It is further proposed to amend sub-section (6) of the aforesaid section so as to provide that where any amendment has the effect of enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee or the deductor, the Assessing Officer shall serve on the assessee or the deductor, as the case may be, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly.
It is also proposed to amend sub-section (8) of the aforesaid section so as to substitute the words “by the assessee” with the words “by the assessee or the deductor.”.
These amendments will take effect from 1st July, 2012.
