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2013 (7) TMI 442 - AT - Income TaxRectification u/s 154 - CIT(A) rejeced the plea of the assessee that the AO erred in assuming the jurisdiction u/s 154 in respect of a debatable issue - whether the CIT(A) has erred in not directing the AO to grant interest u/s 244A on 'refund' due - Held that:- It is settled proposition of law that a mistake apparent from the record must be an obvious and patent mistake and not something which can be established by long drawn process of reasoning can be rectified u/s 154.Thus, a mistake cannot be rectified u/s 154 when there is a debatable point of fact or law. In the case of HEG Ltd. (2009 (12) TMI 35 - SUPREME COURT) held that interest component in the refund will partake the character of 'amount due' u/s 244A, it became an integral part of the refund amount which is not paid after the said amount become due and payable.Similarly, in the case of Sandvik Asia Ltd (2006 (1) TMI 55 - SUPREME Court), it was held that once the interest became due it takes the same colour as the excess amount of tax which is refundable on regular assessment. Thus the issue of grant of interest on interest is a highly debatable and rather allowable claim in favour of the assessee. Therefore, a decision on such a debatable issue cannot be passed under the provisions of sec. 154. Accordingly,set aside the impugned order passed u/s 154 being beyond jurisdiction of the AO in the peculiar facts and circumstances of the case - appeal of the assessee is allowed.
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