9911796707
TMI Blog2024 (6) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... a clerical nature arising out of mistake in calculation of period for which interest is payable to assessee. It is settled proposition of law that if interest is reduced by virtue of Sub-section (3) of Section 244A on account of assessment u/s 143(3), the interest granted in earlier year gets substituted and it is the reduced amount of interest that would form part of income of that year. Thus, it would amount to mistake rectifiable under Section 154 of the Act. Reliance can be placed on Avada Trading Co. (P.) Ltd. [ 2006 (1) TMI 465 - ITAT MUMBAI ] This certainly leads to conclusion that Section 154 proceedings can be held in matters of calculation of the interest component payable u/s 244A of the Act. Admittedly, in the case in hand the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer has admittedly passed order u/s 154 against application of assessee for re-determination of interest u/s 244A 3. Without prejudice, if jurisdiction of AO to re-determine interest u/s 244A requires examination of facts and not covered under mistake apparent from record u/s 154 then assessing officer should be directed to quash the order u/s 154 as it is void ab initio and assume re-determination of interest u/s 244A under appropriate provisions of the Act The above objections are without prejudice to each other. The assessee craves leave to alter, amend or withdraw all or any objections herein or add any further grounds as may be considered necessary either before or during the hearing. 3. Heard and perused the record. 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o facts of the case. Moreover, the reasons so quoted are not supported by any evidence by the department. 5. Now the admitted case of Revenue is that the return was processed on 20.02.2009 U/s 143(1) and refund of Rs. 3364080/- was determined. This refund includes interest of Rs. 346967/-. Thus, while determining the refund order interest U/s 244A was already allowed. In the order U/s 143(1) credit of TDS claimed of Rs. 735018/- was not allowed. However, the same was allowed U/s. 254 of IT Act, 1961. Thus, from the facts it is clear that refund was determined by allowing interest U/s 244A. 6. The AO while deciding this application has observed that; While deciding the writ petition W.P.(C) 3285/2020 CM APPL. 11527/2020 dated 13.10.2020 in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court mentioned Supra. The application filed by assessee dated 27.08.2021 through CPGRAM is hereby rejected. 7. The CIT(A) has sustained the order of AO on the basis that as there was no mistake apparent on record, petition under 154 of the Act was not maintainable. 8. We are of considered view that CIT(A) has fallen in error in making observation that the assessee has sought rectification of the determination of interest under section 244A of the Act while in fact the question was the period for which the interest should have been paid. It was not the question of making a conclusion after a long process so as to be outside the purview of section 154 of the Act. But, merely rectification of a clerical nature arising out of mistake in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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