9911796707
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Issues:
- Whether the Income Tax Officer (ITO) rightly resorted to the provisions of section 154 of the IT Act, 1961. - Whether interest was chargeable only up to the date of regular assessments or up to the date of the rectification order passed under section 155. - Whether the ITO correctly invoked section 154 in cases where interest was not charged in the orders passed under section 155. - Whether there was a mistake apparent from the record on the part of the ITO in not mentioning interest chargeability in the orders passed under section 155. Analysis: 1. The judgment involved nine cross-objections filed by various partners of a firm concerning the application of section 154 of the IT Act, 1961. The ITO initially passed orders on individual partners before finalizing the firm's orders. The issue revolved around the charging of interest under sections 215 and 139(8) or sections 217 and 139(8) for different years. The partners argued that interest should be deemed waived as it was not charged under the orders passed under section 155. The Appellate Assistant Commissioner (AAC) reduced the interest amount, stating that interest was chargeable only up to the date of regular assessments. 2. The main question was whether the ITO correctly invoked section 154. The partners contended that since interest was not charged under the orders passed under section 155, it should be deemed waived. The Revenue argued that waiver required specific conditions per IT Rules, and no order was passed on waiver. The Tribunal held that interest had already been charged at the original assessments, so no waiver occurred. It was also noted that the scope of section 155 was limited, and the ITO was not authorized to waive interest under it. 3. Another argument raised was regarding the charging of interest in specific cases. The partners claimed that no direction was given to charge interest in certain assessment orders, thus rectification under section 154 was not applicable. The Tribunal agreed with the partners, stating that section 154 required an existing order to rectify, and the absence of a direction to charge interest in specific cases precluded rectification under section 154. 4. The final issue addressed whether there was a mistake apparent from the record regarding interest chargeability in the orders passed under section 155. The Tribunal concluded that since interest was already charged at the original assessments and no waiver occurred, there was a mistake in the orders passed under section 155. The ITO rectified this mistake by invoking section 154. 5. In conclusion, some cross-objections were allowed, while others were dismissed based on the Tribunal's analysis of the application of sections 154, 155, and the correct charging of interest in the assessment orders.
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