Section 154 rectification time limit by AO:
A1 year
B4 years from end of FY of order
C2 years (per relevant Section)
D6 years
Answer & Solution
Correct answer: B. 4 years from end of FY of order
1. Section 154(7): 4-year time limit for suo motu rectification.
2. Application by assessee: 6 months from end of month of application for AO to dispose.
3. Rectification cannot enhance assessment or reduce refund without hearing.
_Source: ICAI BoS CA Final Paper 7, Ch 15 "Assessment Procedure"_
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