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2015 (10) TMI 2163 - AT - Income TaxLevy of interest u/s 234D - excess refund given due to wrong computation of interest u/s 244A - rectification of mistake where barred by limitation - Held that:- In the case on hand, there was a mistake in computation of the refund to be granted to the assessee pursuant to the order of the Hon’ble High Court. The mistake was due to computation of interest u/s 244A of the Act payable to the assessee. This mistake in computing the interest u/s 244A of the Act has been rectified by passing the order u/s 154 of the Act on 31/3/2012, and with which the assessee has no quarrel. It is not the case of Revenue that the refund has arisen due to order u/s 143(1) of the Act. Therefore, the first necessary condition for charging of interest u/s 234D of the Act is not satisfied. Further, the refund has arisen due to an order giving effect to an appellate order, which was subsequently rectified u/s 154 of the Act, wherein the interest u/s 234D of the Act was charged. In these circumstances, the second condition that refund granted earlier becomes refundable to Revenue on regular assessment is also not satisfied.In view of the factual matrix of the case on hand, as discussed above, we are of the considered opinion that both the conditions for charging of interest u/s 234D of the Act are not satisfied. On the actual dated on which the undated order giving effect has been passed, except to observe that the documents brought on record by the learned DR clearly establish that the OGE was passed in the Fin. Year 2007-08 and, therefore, the Assessing Officer had time till 31/3/2012 to pass any rectification order. - Decided partly in favour of assessee.
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