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2009 (12) TMI 54 - HC - Income TaxDeduction u/s 10B – Interest u/s 234D – Held that - The exact mistake of the audit party was that after its stand that the book depreciation relating to all the units should be added back in the memo of total income, but it omitted to consider the fact that the assessee would be entitled to income tax depreciation in respect of all the units whereas the company had claimed only income tax depreciation of other units except 10B unit. This is the mistake committed by the audit party and even though the proper and correct reply was submitted by the assessee, the assessing officer, without due application of mind, revised the assessment order - the revenue is not able to establish that the view taken by the Commissioner of Income Tax (Appeals) and confirmed by the Tribunal is not in accordance with law. So is the issue with regard to section 234D penalty. The Commissioner of Income tax (Appeals) has observed that section 234D of the Act is applicable only where any refund is granted to the assessee under section 143(1) of the act and the same is payable back to the department on completion of the assessment under section 143(3) of the Act. The assessing officer has not granted refund under section 143(1) of the Act and in the circumstances section 234D is not applicable – decided in favor of assessee
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