Section 154(7) — the law in short
What the courts have decided on section 154(7), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Hind Wire Industries Ltd v CIT
Supreme CourtHelps taxpayerValidity unconfirmed
My assessment was rectified once already. I want a second rectification, and four years have gone since the original assessment but not since the rectified one. Am I out of time?
No. The Supreme Court held that the word order in section 154(7) is not qualified and does not necessarily mean the original order; it can be any order, including the amended or rectified order. So where an assessment of 21 September 1979 had been rectified on 12 July 1982, an application made on 4 July 1986 was in time, being within four years of the rectified order. The Calcutta High Court, which had counted from the original assessment, was set aside and the Tribunal restored. The Court followed its own sales tax decisions in International Cotton Corporation and H.R. Sri Ramulu.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.