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2014 (9) TMI 490 - AT - Income TaxRectification of mistake u/s 154 Rectification of interest u/s 254D(6A) Withdrawal of interest u/s 244(1A) Held that:- Merely because the AO has wrongly allowed the claim of interest, he intended to re-compute it through rectification proceedings - even if he has granted the above interest wrongly, that will not entitle the AO to form a ground and agitate by means of rectification proceedings u/s. 154 of the Act, unless it can be said that there is a blatant and apparent mistake that has crept in, in the order of the Assessing officer, purely based on material facts on record - the powers conferred by the Statute u/s. 154 on the AO are very limited and are circumscribed by the restrictions mentioned - the earlier assessment was the subject matter of issue before the Settlement Commission and the Settlement Commission passed the order u/s 245D(4) of the Act for which an application was filed by the assessee before the Settlement Commission - the assessment was not completed and the assessment was completed only on 22-03-1991 which is a reassessment - the issue dealt by the AO in the rectification order u/s. 154 of the Act cannot be said to be a mistake apparent from record as it was arrived after due application of mind thus, there is no mistake apparent on record in the earlier order of the AO so as to take up the issues in the proceedings u/s 154 of the Act the order of the CIT(A) is set aside Decided in favour of assessee.
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