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2017 (2) TMI 994 - ITAT HYDERABADRectification of mistake - claim of ‘funded interest paid’ under the provisions of Section 43B, invoking Explanation 3C - Held that:- We are unable to understand why and how this does not fall under the category of mistake apparent from record. Assessee has indeed made a claim after amendment of the Act. Consequently, to that extent, one has to consider that the claim was properly made. The Board Circular No. 68 dt. 17-11-1971 clarifies that where an assessee moves an application u/s. 154 pointing out that a mistake had occurred in any of the completed assessments. Keeping that in mind the application could have acted upon, provided the same has been filed within the time and is otherwise in order. Even when application was originally rejected, the said circular allows a fresh application to consider. Like-wise, Circular No. 73 dt. 17-01-1972 empowers the officer that in all cases where a valid application under clause B of sub-section 2 of Section 154 had been filed by assessee within the statutory limit but was not disposed-off within the time limit specified under sub-section 7 of Section 154, it may be disposedoff by that authority even after expiry of the statutory time limit on merits and in accordance with law. Keeping the above circulars in view, we are of the opinion that assessee’s claim is an allowable claim, if the claim for rectification was made as per the time limits prescribed in Section 154. AO made a reference to company’s letter dt. 04-03-2010 in the order u/s. 154. The order also does not mention when the return was processed u/s. 143(1). Moreover, the enclosures to the appeal indicate that application u/s. 154 has been filed on 25-02-2009. If this date is taken, the application may be well within the statutory period. However, neither the AO nor the CIT(A) has examined whether the application was made within the statutory period of four years from the date of order sought to be amended, as per Section 154(7). The CIT(A) stated that application was made after six years. How the period was counted was not specified. The starting point should be the order, which is sought to be amended. Since there is no clarity on this point, we direct the AO to examine the record and if the application is made within the statutory period then, assessee’s claim should be allowed u/s 154 of the Act. - Decided in favour of assessee for statistical purposes
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