1985 (5) TMI 66

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..... ;                                      Rs. "Interest under section 139(8)                 630 under section 215/217                          870" On account of the rectification order the amount of both the interests got reduced to Rs. 570 and Rs. 790. Apart from the change in the quantum of interest payable in the rectification application the assessee had .....

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..... his objections or explanation and thereafter considered the explanation given. It was further stated that if that was found unsatisfactory then only interest could be charged. It was contended that for the ITO's failure to follow the proper procedure both the penalties should be quashed. Attention was also invited to a decision of this Bench in the case of Suresh Chander Mehra (HUF) [IT Appeal No. 355 (Asr.) of 1983, dated 19-3-1984]. The revenue, on the other hand, relied on the orders of the authorities below and contended that there was no mistake apparent from record. 3. For deciding the issue before us, we may begin by observing that the issue has arisen on the basis of an application under section 154 dated 10-1-1983 moved by the as .....

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..... ccordance with law. A decision of the Karnataka High Court in CIT v. Executors of the Estate of Late H.H. Rajkuverba Dowager Maharani Saheb of Gondal [1978] 115 ITR 301 took a different view from that of the Allahabad High Court on the point of passing of an order and the High Court held that: "Having regard to the quasi-judicial nature of the proceedings under section 217, we are of the opinion that an order has to be passed by the ITO to give effect to section 217 of the Act." The Madras High Court has noted in CIT v. City Palayacot Co. [1980] 122 ITR 430 at pages 445-446 that the Kerala High Court has taken a view similar to that of the Karnataka High Court in CIT v. Cochin-Malabar Estates Ltd. [1974] 97 ITR 466 and, therefore, there w .....

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