demand as per computation sheet but order shows income assessed at nil

[rahul saxena]

While reassessment under 147 AO passed order at nil income in case of a society registered under Sec 12A.Original assessment under 143(3) was also on nil income.However now the order passed at nil income contains a computation sheet with demand in crores of rupees due to the fact that accumulation under Sec 11(2) was not fed in that sheet though it was originally allowed in original return and there was no point in current reassessment hence no question of disallowance.

Now problem is there is no option of filing 154 online in case of returns assessed after 2020-21 in the portal and also when order is for nil income then how should rectification be made and is it really required as the primary thing is order only.

[Padmanathan KV]

As demand can be raised only on order and the order is nil, no demand can be made by department. However, you may file rectification with jurisdictional AO out of abundant caution.

AI Summary

Nil assessment order prevents raising a demand, though rectification with the assessing officer may be filed to correct computation. Reassessment recorded nil income for a registered charitable society although the attached computation sheet showed a demand due to omission of previously allowed accumulation treatment; the omission lacked substantive basis for disallowance. Because demand can be raised only by the operative order, a nil assessment order precludes creation of a valid demand, and the taxpayer may file a rectification application with the jurisdictional assessing officer to correct the computation, noting limitations of the online rectification facility for recent assessment years.