Rectification of mistake

[PRIYAM KHAMBHATA]

Respected Sir,

In Co. A, Income tax assessment order passed on 13.12.2018 and demand raised of Rs.10,00,000/-. Being aggrieved, the same CIT(A) filed. Meanwhile, Co. A had paid Rs.5,00,000/- against demand raised under protest. Subsequently, CIT(A) had decided appeal in favour of Co. A and passed Appellate Order on 09.03.2020. Thereafter, I.T Department had passed Order giving effect to the CIT(A)’s Order on 06.01.2021 with refund receivable of Rs.5,00,000/-. Co. A had already received refund of Rs 5,00,000/- of AY 2016-17. That apart, additionally Rs.5,00,000/- had been adjusted on 04.01.2021 against the Income Tax Refund due of AY 2019-20, by the Income tax Department, which did not know by Co. A. Now, Co. A is made reconciliation with old Income tax Refunds dues in finalization of books for the year ended FY 2024-25 and came to knowledge by Co. A, that Income tax due Refund of Rs.5,00,000/- of AY 2019-20 had been adjusted by the Income tax Department against the due demand of AY 2016-17.

Now, my question is that can file Rectification Application by Co. A, against the Order giving effect to CIT(A)’s order dated 06.01.2021 to get Income tax Refund of Rs.5,00,000/- in respect of unused credits of Income tax refund adjustment of AY 2019-20. Is there time barred for filing Rectification Application under section 154. How can get this refund from Income tax Department by Co. A.

Please guide me

AI Summary

Rectification under section 154 can address refund adjustments made against a demand that no longer survives after appellate relief.
Rectification under section 154 may be invoked against an order giving effect to an appellate order where a refund has been adjusted against a demand that no longer survives after the appellate order. The limitation for filing a rectification application is four years from the end of the financial year in which the order sought to be rectified was passed, and the application must be filed within that period. The rectification request should identify the refund adjustment, refer to the appellate order and the order giving effect, and seek reversal of the adjustment so that the refund can be processed in accordance with the updated demand position.