Assessee wins appeal on interest charge dispute under section 234A

The appeal filed by the assessee against the order of the ld. CIT(A) was allowed. The issue revolved around the enhancement of interest chargeable under section 234A. The AO revised the interest amount significantly, which was upheld by the ld. CIT(A) citing a mistake apparent in the assessment order. However, the assessee's argument, supported by a Bombay High Court case, that the AO's rectification under section 154 was not in accordance with the law, prevailed. As a result, the appeal was allowed in favor of the assessee.

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Issues Involved:
The appeal filed by the assessee against the order of the ld. CIT(A), Ajmer dated 19-08-2019 for the assessment year 2010-11 raising a ground regarding the enhancement of interest chargeable u/s 234A from Rs.8297/- to Rs.97493/-.

Issue 1: Enhancement of Interest Chargeable u/s 234A

The AO revised the interest charged u/s 234A to Rs.97,493/- from Rs.8,296/- based on the assessment order passed u/s 143(3) r.w.s. 147. The ld. CIT(A) agreed with the AO's view that there was a mistake apparent from the record in the assessment order dated 26-03-2015. The AO rectified the mistake u/s 154, which was held to be valid and in accordance with the law. The ld.AR of the assessee contended that the lower authorities erred in confirming the order passed by the AO u/s 153 of the Act. However, the ld. DR supported the orders of the authorities below. The ld. AR referred to a case of Bombay High Court stating that a belated return cannot be submitted after the expiry of one year from the end of the assessment year. The appeal of the assessee was allowed based on this argument, disagreeing with the findings of the ld. CIT(A).

In conclusion, the appeal of the assessee was allowed based on the argument related to the order passed by the AO u/s 154 not being in accordance with the law.

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