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2016 (8) TMI 61 - AT - Income TaxRectification of mistake - chargeability of interest u/s 234B - whether the Assessing Officer could not have set-aside levy of interest u/s 234B of the Act while dealing with an application made by the assessee u/s 154 ? - Held that:- According to the assessee, during the previous year related to the assessment year under consideration, it could not have visualized the subsequent amendment made by Finance Act No. 2 of 2009 to Sec. 115JB of the Act with retrospective effect from 1.4.2001 whereby the Provision for bad and doubtful debts was liable to be assessed for determining the income u/s 115JB of the Act. The aforesaid argument of the assessee cannot be faulted.Accordingly, we set-aside the order of CIT(A) and direct the Assessing Officer not to levy interest u/s 234B of the Act with respect to the addition relating to Provision for bad and doubtful debt made while computing the tax liability u/s 115JB of the Act. Thus, the assessee succeeds on this aspect. The action of Assessing Officer in the course of disposing of assessee’s impugned application u/s 154 of the Act belies the stand of the Revenue. Notably, in its application seeking rectification of the interest charged u/s 234B of the Act, assessee also claimed that interest u/s 234D of the Act was wrongly charged, and also that the credit for tax was not correctly granted. The impugned order of the Assessing Officer dated 2.4.2013 reveals that so far as assessee’s pleas for rectification relating to charging of interest u/s 234D of the Act and non-granting of credit of tax is concerned, same have been accepted. Thus, the inconsistency on the part of Revenue does not lend any credence to its objection of not rectifying the order with respect to the interest charged u/s 234B of the Act. Thus, on this aspect also, we find no reason to uphold the stand of the Revenue. - Decided in favour of assessee.
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