Application for Rectification of Mistake Apparent from Record

Circumstances when an application is made for rectification:

After filling an Income Tax return, the Income Tax department processes the same. But the information provided by the assessee in his filed return is not considered. Upon appearance of any error apparent from the record, a notice is issued by the Income Tax department. The assessee has to comply with the notice. Either he has to make the payment as demanded by the Income Tax department or he may submit an application for rectification for the same.

Necessity of rectification:

Section 154 of the Income Tax Act provides the reasons why an assessee is informed about filing for rectification. It might be the case the salary income entered is higher as the amount of income entered is exempted from gross salary. Another case might arise that the interest paid for house property has not been mentioned. Some other mistakes like wrong entries of the BSR code, the TAN number and its date of deposit. It has to be remembered that the issues mentioned in the application for rectification must not be debatable. For if there is any contradiction, the application will be rejected.

Types of mistakes that can be rectified by an income-taxdepartment:

 For the purpose of rectifying a mistake apparent from record, the Income Tax department can amend the orders which it passes under the Income Tax Act or any intimation given as per section 143(1) of the Income Tax Act. These errors include any arithmetical or clerical ones, error in determining the written down values etc. Only the mistakes apparent from record can be rectified.

What are the mistakes apparent from records?

Any mistake arising due to any subsequent interpretation of law by the Supreme Court constitutes “mistakes apparent from the records”.

Procedure followed upon filing such an application:

Where an assessee makes an application under section 154 of the Income Tax Act before the Income Tax department the same shall be acted upon, if it has been filed within time and is otherwise acceptable. When such an application has been rejected and the assessee files fresh applications within the specified time. The whole return with corrected data is generally re-processed upon rectification.

All mistakes in data entry have to be fully corrected in making an application for rectification. The complete return has to be filled. The reasons for seeking rectification have to be clearly stated.