Rectification Allowed Under Section 154 to Include Interest from Fixed Deposits as Income from Other Sources

The ITAT Delhi allowed the assessee's Miscellaneous Application for rectification under section 154 of the Act, correcting a typographical error in its earlier order. The Tribunal clarified that interest earned on both fixed deposits and savings accounts should be treated as income from other sources, as originally intended, despite the omission of fixed deposits in the previous order. The rectification under section 254(2) was granted to reflect the correct position.

---

---

The Appellate Tribunal addressed a Miscellaneous Application filed by the assessee concerning a typographical error in its earlier order dated 25.06.2020 for A.Y. 2014-15. The error involved the omission of "fixed deposit" in the directive to the Assessing Officer (AO) regarding the treatment of interest income. The Tribunal clarified that the interest earned on both saving bank accounts and fixed deposits should be treated as "income from other sources." Citing Section 254(2) of the Income Tax Act, the Tribunal held that such a typographical mistake is rectifiable. Consequently, the corrected finding in Paragraph 7 of the original order reads: "Therefore, interest on saving bank account and fixed deposit should be taxed under the head income from other sources." The Miscellaneous Application was allowed, and the error was formally rectified.

---