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2010 (1) TMI 705 - AT - Income TaxInterest on refund - application of seized cash or requisitioned asset u/s 132B -AO allowed interest under section 244A to the extent of Rs.6,34,707. - Later AO issued a notice under section 154 to withdraw the interest under section 244A - Held that:- it is settled law that the order under section 154 cannot be made on the debatable issue of facts and law. The Assessing Officer can have jurisdiction under section 154 in case the mistake is clear, distinct and apparent from record - It is true that the learned CIT(A) has directed the Assessing Officer to adjust the self assessment tax and pay the interest under section 244A(1) of the Income Tax Act, 1961 - Assessing Officer was not justified in withdrawing the interest under section 244A(1) because the seized cash was adjusted against the existing liability and interest under section 244A was liable from the date on which the amount was adjusted against the existing liability to the date when the amount was refunded - Decided in favor of assessee.
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