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2017 (9) TMI 1402 - AT - Income TaxLevy of interest u/s 234B, 234D and 222 while passing order u/s 154/260A/143(3) - CIT invoking the “doctrine of merger” - Held that:- It is settled principle of law that once the appeal filed against the completed assessment is decided by the appellate authority, the assessment order merges into the order passed by appellate authority. Since there is no dispute that when the AO has passed original assessment order in all the aforesaid cases, he has categorically ordered to charge the interest as per law and in accordance with ITNS 150 and he has specifically enclosed computation of tax and interest as per ITNS 150 along with assessment order. So when there was specific order passed by the AO for charging the interest under the Act and the said order merges into the appeal order, there is no illegality or perversity in the findings returned by ld. CIT (A). The ld. AR for the assessee though raised ground in the alternative that without prejudice the calculation under various sections is neither correct nor as per spirit of law, but has failed to point out as to how and under what circumstances, the calculation of the interest made by the AO is not in accordance with law. As the assessee contended that since the Special Leave Petition filed by the assessee has been admitted by Hon’ble Supreme Court, this issue cannot be decided. However, when the ld. AR for the assessee is confronted with the fact that only interest has been calculated on the quantum of income on the basis of facts which have not been disputed in quantum proceedings rather question of law has been challenged the ld. AR has failed to reply otherwise. So far as second contention raised by the assessee in AY 2003-04 that the withdrawal of interest u/s 244 is not only illegal but also not authorized under the order passed u/s 144/260A/143(3), against the refund already issued, is concerned, when certain amount is found to be due against the assessee the same can be adjusted against the refund due to the assessee by issuing a demand notice as provided u/s 244A(1). In the instant case, the refund has been adjusted against the interest levied on the assessee as per assessment order and again, we are of the considered view that there is no illegality or perversity in the impugned order passed by the ld. CIT (A). - Decided against assessee.
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