TaxTMI 
TaxTMI 
2023 (2) TMI 86
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....where section 244A(1) clearly applicable to all the order passed u/s 143(1 )/143(3) which also includes order passed u/s 143(3) r.w.s. 147 of the Income tax Act. 2. On the fact and circumstance of the case and in law, the ld. CIT(A) erred in viewing that the Assessing Officer was wrong in restoring to rectifying the order u/s 154 of the I T Act to withdraw the excess interest granted u/s 244A to the assessee, failing to appreciate that it was a mistake apparent from record. 3. On the fact and circumstance of the case and in law, the ld. CIT(A) failed to appreciate that the Assessing Officer was right in holding that if the resulting refund is less than 10% of the assessed tax then the assessee was not entitle to receive interest u/s 244....
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....roneous grant of interest u/s 244A of the Act. 3. The ld. CIT(A) on this issue observed and held as follows: 3.1 I have considered the submission of the appellant and perused the assessment order. Brief facts of the case are that the assessee was refund an amount of Rs. 1,31,70,894/- on which interest u/s 244A of the Act amounting to Rs. 11,42,6801- was given under an order passed u/s 143(3) rws.147. Later, the Assessing Officer was of the opinion that if the resulting refund is less than) 10 % of the assessed tax then the assessee was not entitled to receive interest u/s 244A/ t Therefore, the AO rectified the order u/s 143(3) rws 147 by an order u/s 154 and withdrew the excess interest u/s 244A on refund granted to the assessee. The ....
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.... by a long-drawn process of reasoning on points on which there may be conceivably two opinions. A decision on a debatable point of law is not a mistake apparent from the record. A look at the records must show that there has been an error and that error may be rectified." In view of this the Assessing Officer was wrong in resorting to rectifying the order u/s 154 of the Act to withdraw the excess interest granted u/s 244A to the assessee, as it was not a mistake apparent from record. therefore, the order of the AO u/s 154 is missed. Accordingly, the ground of appeal of the appellant is allowed. 4. We observe from the facts that the assessee got a refund of Rs. 1,31,70,894/- on which interest u/s 244A of the Act amounting to Rs. 11,42,680/-....