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2014 (9) TMI 490 - AT - Income TaxRectification of mistake u/s 154 – Rectification of interest u/s 254D(6A) – Withdrawal of interest u/s 244(1A) – Held that:- Merely because the AO has wrongly allowed the claim of interest, he intended to re-compute it through rectification proceedings - even if he has granted the above interest wrongly, that will not entitle the AO to form a ground and agitate by means of rectification proceedings u/s. 154 of the Act, unless it can be said that there is a blatant and apparent mistake that has crept in, in the order of the Assessing officer, purely based on material facts on record - the powers conferred by the Statute u/s. 154 on the AO are very limited and are circumscribed by the restrictions mentioned - the earlier assessment was the subject matter of issue before the Settlement Commission and the Settlement Commission passed the order u/s 245D(4) of the Act for which an application was filed by the assessee before the Settlement Commission - the assessment was not completed and the assessment was completed only on 22-03-1991 which is a reassessment - the issue dealt by the AO in the rectification order u/s. 154 of the Act cannot be said to be a mistake apparent from record as it was arrived after due application of mind – thus, there is no mistake apparent on record in the earlier order of the AO so as to take up the issues in the proceedings u/s 154 of the Act – the order of the CIT(A) is set aside – Decided in favour of assessee.
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