Mandatory delayed-filing interest can be added by rectification when its omission is a clear record mistake.

Interest for delayed filing under the income-tax law was treated as mandatory, subject only to waiver or reduction under the prescribed rule. Because no waiver or reduction application was made, the assessing authority had no discretion to omit the levy in the original assessment. That omission was therefore treated as a mistake apparent from the record, and rectification was permissible under section 154 to bring the omitted interest into the assessment. The challenge to the rectification failed.

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Issues: Whether section 154 of the Income-tax Act, 1961 could be invoked to levy interest under section 139(8) when such interest had been omitted in the original assessment order, and whether the omission constituted a mistake apparent from the record.

Analysis: Interest under section 139(8) was treated as mandatory in cases of delayed filing, subject only to reduction or waiver in accordance with the prescribed rule. In the absence of any application for waiver or reduction, the assessing authority had no discretion to omit the levy. An omission to charge such interest was therefore regarded as something missed out in the assessment and fell within the scope of a mistake apparent from the record. Rectification under section 154 was accordingly held to be permissible.

Conclusion: The invocation of section 154 to levy the omitted interest was valid, and the assessee's challenge failed.

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