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2023 (4) TMI 1043 - AT - Income TaxRectification of mistake u/s 154 - AO enhanced interest chargeable u/s 234A - HELD THAT - It is noted from the submission of assessee wherein he referred in the case of Priti Pithawala 2003 (3) TMI 743 - ITAT MUMBAI wherein it is observed that a belated return cannot be submitted after the expiry of one year from the end of the assessment year. If any assessment is made for the first time u/s 147 then the assessee cannot be made to pay interest for the period during which it was not possible on the part of the assessee to file return i.e. after one year from the end of the assessment year till issuance of notice u/s 148 of the Act. Hence,order passed by the AO u/s 154 is not in accordance with law and we do not concur with the findings of the ld. CIT(A). Thus the appeal of the assessee is allowed.
Issues Involved:
The appeal filed by the assessee against the order of the ld. CIT(A), Ajmer dated 19-08-2019 for the assessment year 2010-11 raising a ground regarding the enhancement of interest chargeable u/s 234A from Rs.8297/- to Rs.97493/-. Issue 1: Enhancement of Interest Chargeable u/s 234A The AO revised the interest charged u/s 234A to Rs.97,493/- from Rs.8,296/- based on the assessment order passed u/s 143(3) r.w.s. 147. The ld. CIT(A) agreed with the AO's view that there was a mistake apparent from the record in the assessment order dated 26-03-2015. The AO rectified the mistake u/s 154, which was held to be valid and in accordance with the law. The ld.AR of the assessee contended that the lower authorities erred in confirming the order passed by the AO u/s 153 of the Act. However, the ld. DR supported the orders of the authorities below. The ld. AR referred to a case of Bombay High Court stating that a belated return cannot be submitted after the expiry of one year from the end of the assessment year. The appeal of the assessee was allowed based on this argument, disagreeing with the findings of the ld. CIT(A). In conclusion, the appeal of the assessee was allowed based on the argument related to the order passed by the AO u/s 154 not being in accordance with the law.
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