Rectification under income-tax law was ordered to be decided within three months, with recovery stayed pending the decision.

Pending rectification under section 154 of the Income-tax Act was directed to be decided expeditiously, with the competent authority required to dispose of the application within three months. The Court also directed that no further evidence should be insisted upon for the TDS issue already supported by the ledger account, while allowing the petitioner to furnish the ledger if not already on record. Coercive recovery of the outstanding demand was restrained until the rectification application is decided, giving the petitioner interim protection pending that determination.

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Issues: Whether the pending rectification application under Section 154 of the Income-tax Act, 1961 should be directed to be decided within a fixed time, and whether recovery of the outstanding demand should be kept in abeyance till such decision.

Analysis: The rectification application had remained undecided, while the impugned demand continued to reflect on the e-filing portal. The Court accepted the request for expeditious disposal and directed the competent authority to decide the application within three months. It also directed that no additional evidence be insisted upon for the TDS issue already supported by the ledger account, while permitting the petitioner to supply the ledger if not already available with the authority. The Court further protected the petitioner from coercive recovery pending decision on the rectification application.

Conclusion: The petitioner was granted relief by way of a time-bound direction for disposal of the rectification application and a restraint on pressing recovery of the outstanding demand until that decision.

Final Conclusion: The writ petition was disposed of with directions securing expeditious consideration of the rectification request and interim protection against coercive recovery.

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