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2017 (12) TMI 930 - HC - Income TaxInterest charged under Section 234B - AO empowered to invoke the provisions of Section 154 - interest chargeable u/s 234B on tax liability arising on the assessee by virtue of retrospective amendment under Section 115JB - Held that:- It the issue relating to deduction of provisions of bad and doubtful debts was the matter which was considered and decided by the CIT(A). In view of Section 154(1A) of the Act, an authority can rectify/reappraise an order where there is a “mistake apparent from record” only on the issues which had not been the subject matter of appeal or revision before the appellate/revisional authority. The provision of Section 154 of the Act had been invoked by the Assessing Officer. In such circumstances, the rectification could be carried out by the appellate/revisional authority. Thus, the rectification in the present case was within the domain of the appellate authority, i.e. CIT(A) only and not by the Assessing Officer as the matter of allowability of provision of bad and doubtful debts while working out book profit tax under Section 115 JB of the Act had already been decided by CIT(A). It has been correctly recorded by the Tribunal that only CIT(A) was competent to assume jurisdiction under Section 154 of the Act. Interest charged under Section 234D and withdrawal of interest under Section 244A - Held that:- Firstly, once it is held that invoking of power of rectification under Section 154 of the Act was unjustified, the consequential conclusion would be that the chargeability of interest under Sections 234B and 234D of the Act would not arise. To put it differently, since the Assessing Officer is not empowered to invoke the provisions of Section 154 of the Act, on the matter already decided by CIT(A) under Section 154(1A) of the Act, therefore, interest under Sections 234B and 234D of the Act was consequential in nature. Viewing from another angle, Section 234B of the Act provides for recovery of interest for default in payment of advance tax. The assessee is liable to pay simple interest where he is unable to pay advance tax under Section 208 of the Act but has failed to pay such tax or where the advance tax paid is less than 90% of the assessed tax. Where the advance tax is based on the law prevailing on the date on which tax was due and payable, then in that eventuality any liability created by way of amended provisions subsequently incorporated would not attract payment of interest as there was no default on the date of payment of advance tax. Thus, it cannot be said that the approach of the Tribunal was erroneous or perverse in holding that interest under Section 234B of the Act was not chargeable. The Tribunal placing reliance on the decision of the Bombay High Court in The Commissioner of Income Tax, Mumbai Vs. JSW Energy Limited (2015 (5) TMI 823 - BOMBAY HIGH COURT) had correctly decided the issue relating to charging of interest under Section 234B.
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