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2021 (9) TMI 805 - AT - Income TaxRectification of mistake u/s 154 - Wrong computation of interest u/s 234D - assessee contended that there could not have been any levy of interest u/s 234D when refund was never granted to the assessee - HELD THAT:- As it could be seen that order giving effect to ITSC order has been passed by Ld. AO on 31/12/2013 and a demand to ₹ 102.21 Lacs has been raised against the assessee - the order was rectified u/s 154, at assessee’s instance, on 11/06/2014 and fresh computations have been made reducing the demand to ₹ 38.06 Lacs. The demand has been reduced due to reworking of interest u/s 244A and 234D without disturbing the assessed income. The assessee has paid this demand on 04/07/2014. Another rectification has been made in this order on 05/06/2018 raising fresh demand of ₹ 3.50 Lacs against the assessee. This rectification is at the instance of Ld. AO since excess interest was allowed u/s 244A and interest u/s 234D was wrongly charged. In this order also, the assessed income has not been disturbed. Therefore, in our opinion, what this order has rectified is the order passed u/s 154 on 11/06/2014 and not the assessment order framed pursuant to the directions of Hon’ble ITSC on 31/12/2013. Therefore, as counted from 11/06/2014, the rectification order passed u/s 154 on 05/06/2018 is well within the limitation period of four years (from the end of financial year in which order sought to be rectified has been passed) and the same could not be held to be bad in law. AO was obligated by law to provide opportunity of hearing to the assessee before raising fresh demand. We find that Ld. CIT(A) has directed Ld. AO to compute correct interest u/s 234D as well as grant correct interest u/s 244A after due verification of facts and in accordance with law. Therefore, with these directions, the grievance of the assessee has been taken care of and Ld. AO has been directed to charge / grant interest as per law.
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