Form ITNS-150 Constitutes Valid Assessment Order u/s 143(3), Any Rectification Attracts S. 154 Limitation Period: Delhi HC [Read Order]
The court ruled that Form ITNS-150 is a valid assessment order under Section 143(3), and any modification to it must comply with the limitation period prescribed under Section 154.
![Form ITNS-150 Constitutes Valid Assessment Order u/s 143(3), Any Rectification Attracts S. 154 Limitation Period: Delhi HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Form-ITNS-site-img.jpg "Form ITNS-150 Constitutes Valid Assessment Order u/s 143(3), Any Rectification Attracts S. 154 Limitation Period: Delhi HC [Read Order]")
In a recent judgment, the Delhi High Court ruled that Form ITNS-150 is not merely a ministerial document but a valid assessment order under Section 143(3) of the Income Tax Act, 1961, and any amendment to this form is subject to the statutory limitation period prescribed under Section 154 of the Act. The case arose when the Assessing Officer (AO) issued a notice dated 12.12.2024 under...
In a recent judgment, the Delhi High Court ruled that Form ITNS-150 is not merely a ministerial document but a valid assessment order under Section 143(3) of the Income Tax Act, 1961, and any amendment to this form is subject to the statutory limitation period prescribed under Section 154 of the Act.
The case arose when the Assessing Officer (AO) issued a notice dated 12.12.2024 under Section 154 to Dhansamridhi Finance Pvt Ltd (the petitioner) seeking to levy interest under Section 234A for four months on the ground that the return was filed late in response to a notice under Section 148 of the Income Tax Act.
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The AO subsequently passed a rectification order on 26.12.2024 and issued a demand notice for Rs. 29,75,729 as interest under Section 234A, which the petitioner challenged as time-barred and erroneous. The petitioner argued that the reassessment order and accompanying Form ITNS-150, signed by the AO, clearly recorded ‘zero’ interest under Section 234A.
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The petitioner’s counsel argued that the rectification could not be considered a clerical or computational error but amounted to a substantive reassessment, barred by limitation under Section 154(7). They further argued that the return filed was merely a reiteration of the original return and hence, no interest for delayed filing was applicable.
The revenue counsel submitted that the amendment was not to the assessment order itself but to Form ITNS-150, which it claimed was a ministerial exercise. They relied on judicial precedents to suggest that such corrections could be made even beyond the four-year limitation.
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The bench comprising Justice Vibhu Bakhru and Justice Tejas Karia rejected the Revenue's argument citing the Supreme Court’s ruling in Kalyankumar Ray v. CIT. The court held that Form ITNS-150, once signed by the AO, is an integral part of the assessment order under Section 143(3). Any changes to it must comply with Section 154, including its time limitation.
The court further found that the AO had consciously decided not to levy interest under Section 234A in the original computation, and the rectification sought to alter a considered conclusion rather than correct an apparent error.
Since the rectification proceedings were initiated after the statutory four-year period, the court held the order and the demand notice to be unsustainable in law. The court allowed the writ petition and quashed the rectification order and the related demand notice.
To Read the full text of the Order CLICK HERE
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