2017 (10) TMI 63

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....st law and facts of the case. 2) That the Ld. CIT (A) has erred in law in holding that non issuance of u/s 154(3) is a "procedural lapse on the part of the A.O". when in la service of the notice u/s 154(3) gives jurisdiction to the A.O. to pas: u/s 154 of the Income Tax Act as notice u/s 154(3) is a jurisdictional notice. 3) That the Ld. CIT (A) has also erred in law in not holding the order by the A.O. passed under section 154 is null and void as the order passed by the A.O. is nullity in law. 4) That in addition and rather in the alternative and without jurisdiction grounds No. 3 and 4 above, it is submitted: (a) That the observations made by the Ld. CIT(A) in the impugned order regarding charging of interest under section 139(8),....

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....d. Hence, the same is rectified u/s 154 Issue Demand Notice & Challan." 4. Aggrieved by the same, the assessee filed appeal before the CIT(A). The CIT(A) observed that the perusal of the rectification order passed by the Assessing Officer shows that the Assessing Officer reduced the tax liability of interest u/s 220(2) of the Act which was wrongly charged by him at the time of passing of reassessment order. The Assessing Officer was competent to make amendment/rectification in the re-assessment order as per Section 154(2) of the Act on his own motion as a mistake apparent from record was noticed by him. The CIT (A) further observed that the Assessing Officer rightly rectified the computation of interest u/s 139(8) and u/s 270 of the Act w....

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.... there was a breach of principles of natural of justice. The Ld. AR further submits that as per Section 234A & Section 234B of the Act, the assessee is not liable to pay interest as there was no default in furnishing return of income or default in payment of advance tax. Therefore, Ld. AR submitted that the Assessing Officer as well as the CIT (A) has erroneously passed the orders against the assessee. The same needs to be set aside. 7. The Ld. DR submitted that the Assessing Officer as well as the CIT(A) rightly passed the orders. The Assessing Officer has rectified the order as there was error in the Original Assessment Order about calculation and charging of interest which is allowed under the relevant provisions of the Act. The Ld. DR ....