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2014 (8) TMI 689 - HC - Income TaxRectification of order u/s 154 – Effective date for interest u/s 244A - Whether the assessee is entitled to be paid interest u/s 244-A of the Act from the date on which the application in respect of that amount was made or any date anterior to that – Held that:- A perusal of the order dated 26.05.1999 discloses that the revenue did not put the assessee on notice before taking such a view - he rectified the order, dated 15.03.1999 in exercise of power u/s 154 of the Act - He did not make any attempt to undertake the corresponding rectification in the order of assessment, dated 15.03.1999 –revenue seems to have felt that once the order dated 15.03.1999 is rectified, the effect would automatically fall upon the order of assessment - The figure was arrived at by calculating the interest from the relevant date in the AY which is referable to 1996 - once the revenue allowed the interest from that date, valuable rights accrued to the assessee - the exercise can be redone by the revenue after issuing notice, only on the limited aspect of the interest, payable u/s 244-A of the Act – Decided in favour of assessee.
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