ITR
Department rectifying and raising a higher demand
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Facts
The officer or CPC can rectify on their own motion. If the rectification will increase your tax or reduce a refund, they must give you notice and a reasonable chance to be heard first.
Provisions and law
- Sec 154 (now Sec 287)Rectification on own motion; an order that enhances tax or reduces refund needs prior notice and hearing
Analysis
Treat this like any notice: read what mistake they say exists and whether it is really apparent from record. If they propose to withdraw a deduction of ₹1,00,000 on a view that needs facts or argument, reply that it is a debatable issue and not a mistake apparent from record. If the point is an obvious arithmetic slip that went in your favour, accept it to avoid interest building up. Reply before the date on the notice through e-Proceedings.
Conclusion
- Open the notice under Pending Actions > e-Proceedings
- Identify the exact change proposed and its tax effect
- Reply with reasons and documents, or accept if the error is genuine
- Track the rectification order and appeal within 30 days if you disagree
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Rectification, Sec 154 (now 287)
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