16(5) benefit if appeal filed-how to take

[SUSHIL BANSAL]

Dear experts,

for the FY 2019-20 we have filed appeal for 16(4) ineligible ITC, now the period extended as per section 16(5) and hence our ITC becomes eligible now.

My querry is whether we can withdraw the appeal and file rectification application.

[Ganeshan Kalyani]

Yes, you can withdraw the appeal and go for the rectification.

[Shilpi Jain]

Instead of withdrawing the appeal, write to the officer to decide the matter in the light of the new section 16(5) and pass appropriate orders.

[SUSHIL BANSAL]

tysm for your expert opinion

AI Summary

Input tax credit eligibility: withdraw the appeal and seek rectification or ask the officer to decide under changed eligibility. Taxpayer may withdraw a pending appeal and file a rectification application to claim input tax credit that became newly eligible due to a change in eligibility rules; alternatively, the taxpayer can request the assessing officer to decide the matter in light of the changed ITC eligibility and pass appropriate orders recognizing the entitlement.