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2023 (7) TMI 1074 - AT - Income TaxRectification u/s 154 - Issuance of intimation u/s 143(1) on charging of interest u/s 234B and 234C - audit objection raised at a later stage on the issue of non-levy of interest - Period of limitation - HELD THAT:- The interest u/s 234B has not been charged while issuing the intimation u/s 143(1). The assessee has filed revised return on 26.02.2010 and assessment u/s 143(3) was completed on 11.05.2010. The notice u/s 143(2) was issued on 19.08.2009. The assessee has filed revised return on 26.02.2010 which has been duly taken cognizance and the assessment u/s 143(3) was passed on 11.05.2010. The interest u/s 234B and u/s 234C has not been charged while issuing the intimation and the demand raised as per the record was Nil. The date of order u/s 154 was 16.01.2017 pertaining to the Assessment Order passed u/s 153A and date of rectification order u/s 154 r.w.s. 254/143(3) was dated 09.12.2020 which tried to modify the order of 2009. With the filing of the revised return and issue of notice u/s 143(2), the revenue looses the right of processing the return u/s 143(1). The provision of section as amended by the subsequent Finance Act 2017 merely mentions that the processing of return shall not be necessary where a notice has been issued u/s 143(2) which was mainly brought in the Income Tax Act to stop the granting of refunds in the case of assessee's, whose return has been taken for scrutiny u/s 143(2). We find that the Hon’ble Supreme Court in the case of CIT Vs. Gujarat Electricity Board [2002 (10) TMI 5 - SUPREME COURT] held that where summary procedure u/s 143(1) has been adopted, a regular assessment can be made u/s 143(3) after issuing of notice u/s 143(2) but the converse is not correct. The provisions u/s 143(1D) provides that notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2). Hon’ble Apex Court held that Section 143(1) enacts a summary procedure for quick collection of tax and quick refunds and it was meant for seeking any rectification u/s 154. Thus, we find the order of the rectification u/s 154 passed by the revenue authorities on 09.12.2020 rectifying the order of the earlier decade is barred by limitation and cannot be held to be legally valid.
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