1978 (1) TMI 92

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....nder s. 154 of the Act. 2. The assessee is an individual. For the asst. yr. 1972-73 corresponding to the previous year 30th Sept., 1971, the assessee filed a return on 4th Aug., 1972 and the assessment was made on 18th June, 1973. In that assessment no interest was charged under s. 217(1A) of the Act viewing this omission as a mistake apparent from record, the ITO rectified the assessment under....

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.... which the ITO could validly rectify under s. 154 of the Act. Reliance was placed on the decision of the Gujarat High court in the case of Ramjibhai Hirjibhai & Sons. 1977 CTR (Guj) 27 : (1977) 110 ITR 411 (Guj). 4. On the other hand, it was contended on behalf of the assessee that the power of the ITO under s. 217 was discretionary and, therefore, the AAC was right in holding that it was not a....

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....cumstances under which the interest may be waived. It is the case of the Revenue that these provisions can confer only a limited discretion on the ITO and since the conditions required for the exercise of that discretion were not fulfilled, the ITO cannot be considered to have waived the interest and, therefore, the omission to charge interest could be rectified by him under s. 154 of the Act. The....

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....& Anr. where it was held that the ITO was bound to consider whether the case would fall within the terms of the rules allowing for waiver of interest even if there were no application and that he must be deemed to have considered it if he had omitted to charge interest. Again it has been held in the case of Volkart Bros. & Ors. 82 ITR 50 that s. 154 can be invoked only if the mistake is apparent f....