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2021 (12) TMI 699 - AT - Income TaxApplication u/s 154 - grant of interest u/ 244A - credit for the amount self- assessment tax that was omitted to be given in the intimation issued by the department u/s 143(1)(a) - HELD THAT:- Both the lower authorities had proceeded on the basis of misconceived and incorrect facts. As stated by the ld. A.R, and rightly so, the A.O instead of giving effect to the directions that were issued by the CIT(A), wherein he was directed to verify the facts and grant interest u/ 244A as per law, had instead passed an order u/s 154 On a perusal of the order passed by the A.O u/s 154 we find, that he despite having been specifically directed by the CIT(A) to verify the facts and grant the interest u/s 244A as per law, however, had failed to give effect to the said directions by way of a speaking order and had summarily observed that interest under the said statutory provision was only to be calculated on the refund arising out of TDS, TCS and Advance Tax paid by the assessee company. On appeal, we find that the CIT(A), being of the view that the impugned order before him was an order passed by the A.O u/s 154 of the Act declining the assessee’s request for rectification, had thus, proceeded with on the basis of the said misconceived factual position and had dismissed the assessee’s appeal, for the reason, that the claim of the assessee did not fall within the realm of a mistake apparent from the record within the meaning of Sec. 154 We concur with the claim of the ld. A.R that both the lower authorities had proceeded with the matter on the basis of misconceived and incorrect facts. We, thus, in the totality of the facts involved in the case before us restore the issue to the file of the A.O who shall comply with the directions given by the CIT(A) which read as that A.O has not granted interest u/s. 244A on the refund ranted on rectification order passed u/s 154 of the I.T. Act, 1961. It has been pointed that the A.O has passed the rectification order u/s 514 of the I.T. Act, 1961 giving credit of ₹ 50 lacs paid as self assessment tax by the appellant without granting interest u/s 244A Assessee shall in the course of the set-aside proceedings remain at a liberty to substantiate its entitlement for interest u/s 244A on the amount of the self-assessment tax of ₹ 50 lac. As we have restored the matter to the file of the A.O for re-adjudication, therefore, we refrain from adverting to the contentions advanced by the ld. A.R as regards the merits of the case - Appeal of assessee is allowed for statistical purpose
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