TMI Blog2021 (3) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act that provisions of said sub-section can only be invoked in the case where the completion of assessment U/s 143(3)/144 or 147 of the Act takes place, but admittedly in the present case, no return was filed. There was no occasion for completion of the assessment under the above provisions, therefore, the assesse cannot take benefit of sub-section (3) of Section 234A of the Act. Provisions of rectification can only be invoked for correcting the mistake which are apparent on record and in the present case, the mistake is obvious and patent and do not involve any dispute which is debatable in nature. The decision relied upon by the ld AR is not applicable to the facts of the present case. No new facts and circumstances have been brought on record before us by the ld AR as the dispute involved in the present case is only applicability of the period of charging of interest which can be gathered on the plain reading of provisions of Section 234A(1) - Decided against assessee. - ITA No. 967/JP/2019 - - - Dated:- 17-3-2021 - Shri Sandeep Gosain, Jm And Shri Vikram Singh Yadav, Am For the Assessee : Shri H.M. Singhvi (CA) For the Revenue : Smt. Monisha Choudhary(Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for charging of interest u/s 234A, hence rectification order passed is bad in law in view of Hon'able Supreme Court judgement in the case of TS Balaram, ITO Vs. Volkart brothers (82 ITR 50,53,54) wherein it has been held that a decision on debatable point of law is not the mistake apparent from records and same has been followed by the number of High Courts and ITAT benches of India. Now for the sake of your convenience we are reproducing the sub section (1) and (3). 234A. (1) Where the return of income for any assessment year under sub-section (1) or sub-section (4) of section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one per cent for every month or part of a month comprised in the period commencing on the date immediately following the due date, and,- (a) where the return is furnished after the due date, ending on the date of furnishing of the return; or (b) where no return has been furnished, ending on the date of completion of the assessment under section 144, on the amount of the tax on the total in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as under: 234A(1) Where the return of income for any assessment year under subsection (1) or sub-section 139, or in response to a notice under sub-section (1) of section 142, is furnished after the due date, or is not furnished, the assessee shall be liable to pay simple interest at the rate of one and one-fourth percent for every month, or part of a month comprised in the period commencing on the date immediately following the due date, and:- a) where the return is furnished after the due date, ending on the date of furnishing of the return; or b) where no return has been furnished, ending on the date of completion of the assessment u/s 144, on the amount of the tax on the total income as determined under section (1) of section 143 or on regular assessment as reduced by the advance tax, if any, paid and tax deducted or collected at source. Explanation 1 Explanation 3. Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purpose of this section. 9. With a view to simplify the procedure, which had l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harged at ₹ 2,66,950/- in ITNS 150 dated 31/03/2016 whereas it was to be charged at ₹ 9,41,283/- and thus considered the same to be mistake apparent from the record. The A.O. also issued notice to the assessee and provided opportunity of hearing but the assessee did not appear before the A.O.. Consequently, the order of rectification was passed by the A.O. thereby charging interest U/s 234A(1) of the Act at ₹ 9,41,283/- but at the same time, the total income of the assesse was kept same as was determined U/s 143(3)/147 of the Act. The ld. AR has vehemently opposed the passing of rectification order on the ground that there was no mistake apparent from the record and charging of interest is a debatable issue and relied upon the decision of Hon ble Supreme Court in the case of TS Balaram, ITO Vs Volkart Brothers 82 ITR 50. 6. After perusal of the facts of the present case, we found that the ld. AR solely relied upon the provisions of Section 234A(3) of the Act whereas it has categorically been provided therein that for return filed U/s 148 after the completion of an assessment U/s 143(3) or 144/147 interest is to be charged commencing on the date from the expir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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