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2017 (12) TMI 986 - AT - Income TaxRectification order u/s 154 passed an order to pay interest u/s 234A - whether charging of interest is a statutory provision and omission of applying statutory provision is a rectifiable mistake u/s 154 - Held that:- We find that assessee filed a return of income declaring a loss of ₹ 2,84,909/- The return of income was filed on 31.03.2010 which was required to be filed on 30.09.2009. The Assessing Officer vide assessment order dated 23.12.2012 completed the assessment after making certain additions and in the body of assessment order charged interest u/s 234B. However, he did not make any direction to charge any interest u/s 234A of the Act later on he passed an order u/s 154 on 10.05.2013 and created an additional demand of ₹ 2,14,9,438/- being interest for six months which the assessee was liable to be charged u/s 234A of the Act. The Ld. CIT(A) has deleted the demand for interest by following the decision of Hon'ble Supreme Court in the case of CIT Vs. Ranchi Club Ltd.[2000 (8) TMI 79 - SUPREME Court] The conclusion of Hon'ble Supreme Court in the case of CIT Vs. Ranchi Club Ltd. is that in the absence of any specific mention of the Assessing Officer in the assessment order for charging of interest u/s 234A and 234B, no interest would be recovered from the assessee merely by way of a demand notice. We further find that Hon'ble Delhi High Court in the case of CIT Vs. Kishan Lal (HUF) [2002 (8) TMI 74 - DELHI High Court] has again followed the order of Hon'ble Supreme Court and has held that in the absence of any direction in the assessment order for charging interest u/s 234A and 234B interest cannot be recovered. - Decided against revenue
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