In a case appeal or arbitration is pending on the specified date, but a rectification is also pending with the AO which if accepted will reduce the total assessed income. Will the calculation of disputed tax be calculated on rectified total assessed income?

Rectification order effect: disputed tax is calculated after giving effect to any rectification that alters assessed income and tax liability.

A rectification order by the Assessing Officer that reduces or increases assessed income or tax liability must be given effect to before determining disputed tax; disputed tax is therefore calculated after implementing any such rectification that changes the assessee's income or tax liability.