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2014 (1) TMI 1355 - AT - Income TaxOriginal assessment set aside – No findings for commencement of business – matter already restored for fresh consideration - Held that:- The CIT (A) had grossly erred in coming to a conclusion that the only issue of charging of interest u/s 234B of the Act survives for adjudication - If that were to be so, the earlier Bench would have given a specific direction to the AO to address only issue of charging of interest u/s 234B of the Act as ascribed by the CIT (A) - when the assessee had sought to raise an additional ground in its cross objection, there was no trace of any objection from the then learned DR for admitting such an additional ground by the Bench - Thus, it is explicit that after having duly considered the rival submissions and also the facts of the issue, the earlier Bench thought it fit to accede to the request of both the parties. The CIT (A) was also incorrect in observing that the ITAT did not examine the issue on merits at all, but, only advised to re-look by the AO - When both the parties have pleaded for restoration of the issue(s) to the AO for fresh adjudication, naturally, the earlier Bench was left with no other alternative, but, to accede to their requests - when the DR agreed that the issues raised by both the assessee and the Revenue be restored to the Assessing Officer for fresh adjudication and the Tribunal order having attained finality, the Tribunal's direction cannot be circumvented – The authorities below have not properly understood the directions of the earlier Bench in a better perception for which it was intended to – the issue remitted back to the AO for fresh adjudication. Levy of Interest u/s 234B(3) of the Act – Held that:- The omission of the officer to levy interest u/s 234 B(3) in the reassessment completed u/s 147 which could have been rectified u/s 154 did not desist the officer from levying interest under the very same provision, when the reassessment was revised a second time u/s 147 - The levy of interest u/s 234B was valid - in the present case when the original assessment was concluded on a total income of Rs.65.76 lakhs, interest u/s 234B of the Act was charged at Rs.17.28 lakhs and finally when the re-assessment was concluded u/s 143(3) r.w.s. 254(1) of the Act on a reduced income of Rs.61.79 lakhs, the interest chargeable u/s 234B of the Act cannot be higher than what has been levied in the original assessment – Decided partly in favour of Assessee.
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