“Section 154(7)”
The decision most relied on for Section 154(7) is Kalpesh Synthetics (P.) Ltd. v. DCIT (137 Taxmann.com 475), cited in 198 judgments on BharatTax.
Leading authorities on Section 154(7)
A deduction claimed under Section 36(1)(va) for employee contributions remitted after the statutory due date but before the return filing due date cannot be disallowed during intimation processing under Section 143(1) if the issue is debatable. Such a disallowance cannot be made automatically based solely on auditor's mention of actual vs. due dates in the tax audit report.
An amendment clarifying the disallowance of employee contributions under sections 36(1)(va) and 43B is prospective. Therefore, before such amendment, employee contributions paid before the due date for filing the income tax return are deductible.
For claiming relief under Chapter VI-A deductions like Section 80IB or 80IA, the audit report in Form 10CCB is not mandatory to be filed with the return of income, but can be submitted before the assessment is completed.
The requirement to file an audit report along with the return of income for claiming deductions under sections like 80-IA(7) or 80J(6A) is directory, not mandatory, and can be filed at any time before the assessment is finalized.
The beneficial provisions of Section 43B do not apply to sums covered by Section 36(1)(va), which are employee contributions to welfare funds. The scope of Section 43B and Section 36(1)(va) are distinct, meaning belated payment of employee contributions is not deductible under Section 43B, and only Section 36(1)(va) read with Section 2(24)(x) governs their deductibility.
An assessee can file a revised computation of income during ongoing assessment proceedings, even after the time limit for filing a revised return under section 139(5) has expired. This revised computation can be submitted without filing a revised return.
The limitation period for rectification under section 154 of the Income Tax Act is to be counted from the date of the latest order passed, not the original order. This ensures claims made within the appropriate timeframe after subsequent orders are not time-barred.
The time limit for filing Form 67 to claim foreign tax credit is directory, not mandatory. If no negative consequences are contemplated for non-adherence, the provision is considered directory.
