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2016 (5) TMI 973 - AT - Income TaxRectification of mistake - charging interest u/s.234B is wrongly calculated as per the provisions of section 234B (1), whereas, it should have been calculated as per the provisions of section 234B (3) - Held that:- Determination of “total income” under sub-section (1) of section 143 was made on 21.02.2012. No regular assessment was made u/s.143(3) of the Act. Notice was issued u/s.148 of the Act on 02.01.2014 and assessment was made u/s.143(3) of the Act read with section 148 on 27.06.2014 for the first time. This re-opened assessment was resulted in demand of ₹ 1,23,150/-. A demand notice u/s.156 was served on the assessee on 08.07.2014. The assessment made for the first time u/s.143(3) read with section 147 of the Act fits into Explanation-2 to section 234B(1) of the Act, which is to be regarded as “Regular Assessment” for the purpose of sec.234B of the Act. As intimation u/s.143(1) is obviously not an assessment and it is the case of “Assessment ” for the first time in the hands of assessee u/s.147, the case will fall under sub-section(1) of section 234B. We Therefore,, hold that the AO is justified in coming to the conclusion that the starting point for charging interest u/s.234B have been as First April 2011 and end point of the same is 27.06.2014 and as such there is no error in the assessment order so as to rectify u/s.154 of the Act. More so, the issue raised by the assessee herein cannot be considered u/s.154 of the Act as the issue in dispute is highly debatable. Under section 154 of the Act, only mistakes apparent on record could be rectified by the Authorities. The issue in dispute is not a mistake apparent from record. It is required long process of reasoning and points on which there may be conceivably two opinions possible. As such the issue in dispute cannot be considered u/s.154 of the Act. - Decided against assessee
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