Application under section 154
Amit Soni
(Querist) 28 August 2012
This query is : Resolved
An Krishi Upaj Mandi Samiti (Earlier AOP) got the status of Trust u/s 12A/AA by the order of High Court but returns could not be revised in due time. Whether an Application u/s 154 can be filed for this? if yes than please also mention some case laws/Circular/Notification in this regard.
You can also direct mail me your reply on csamit@live.com
Thanks in advance.
ANAND RAVADA
(Expert) 28 August 2012
mr Amit,
the only remedy is with you is you can approach to the Commissioner of Incometax of the concerned jurisdiction and put a petition for condonation of delay and stating the exact facts.
you cannot file application u/s 154. it is exclusively meant for rectification of mistake( apparant from the record)
Amit Soni
(Querist) 28 August 2012
Thanks Mr. Ravada,
But since there are many circular stating that after receiving order from higher court and with retrospective effect application u/s 154 can file for making changes. I am reproducing one of the circular:
SECTION 154 l RECTIFICATION OF MISTAKES
899. Mistakes apparent from records - Whether can be treated as such on the basis of subsequent decision of Supreme
Court
1. The Board are advised that a mistake arising as a result of a subsequent interpretation of law by the Supreme Court would constitute “a
mistake apparent from the records” and rectificato ry action under section 35/154 of the 1922 Act/the 1961 Act would be in order. It has,
therefore, been decided that where an asses see moves an application under section 154 pointing out that in the light of a later decision of the
Supreme Court pronouncing the correct legal position, a mistake has occurred in any of the completed assessments in his case, the
application shall be acted upon, provided the same has been filed within time and is other wise in order. Where any such applications have
already been rejected and the assessee files fresh applications within the statutory time limit, the same may also be treated on par with the
applications which may either be pending or received after the issue of this circular.
2. The Board desire that any appeals or references pending on the point at issue may please be withdrawn.
Circular : No. 68 [F.No. 245/17/71-A&PAC], dated 17-11-1971.
JUDICIAL ANALYSIS
EXPLAINED IN - In ITO v. Smt. Manini Niranjanbhai [1992] 41 IT D 324 (Ahd.-T rib.) (SMC) it was observed that as per Circular No. 68, dated
17-11-1971, it is now a well established position that the Supreme Court does not declare the law with effect from the date of its order and the law
declared by the Supreme Court has effect not only from the date of the decision but from the inception of the statutory provision. It has been
mentioned therein that the Board have been advised that the mistake arising as a result of subse quent interpretation of law by the Supreme Court
would constitute a mistake apparent from record and rectificatory action under section 154 would be justified.
So, My question was in the similar line and want to know some case laws on the same. That whether application u/s 154 can made for the status changed after an different interpretation of law made by higher court in favor of assessee by giving him the status of Trust instead AOP and allowing him to be registered for exemption u/s 12A/AA. And after that order time for revising IT return was elapsed so want to make an application on this basis that HC has given the order to register as trust and give exemption u/s 12A/AA WITH RETROSPECTIVE EFFECT.
