AI Drafter 
TaxTMI 
TaxTMI 
2022 (6) TMI 1391
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....her sources. The case was selected for scrutiny. The Assessing Officer made disallowance (1) on account of application of section 14A of the Income tax Act, 1961 (hereinafter referred to as "the Act") read with Rule 8D(2)(iii) of the Income-tax Rules, 1962 (hereinafter referred to as "the Rules") and (2) charged interest u/s 234A and 234B of the Act qua the self-assessment payments u/s 140A of the Act. 3. In the first appellate proceedings, the ld. CIT(A) upheld the order of Assessing Officer. 4. Aggrieved with the order of the CIT(A), the assessee filed an appeal before the Tribunal. 5. After hearing both the parties and perusing the material on record, the Tribunal found that the co-ordinate Bench of Pune Tribunal decided the issues in group cases of the assesse vide order dated 29-03-2019. The relevant findings of the Tribunal are in paras 7 to 13 and the same read as under: "7. The first issue raised in this appeal is against confirmation of disallowance u/s.14A. The facts apropos this issue are that the assessee earned exempt income but did not offer any disallowance u/s.14A. The AO computed disallowance at Rs.30,35,585/- only under Rule 8D(2)(iii), being, 0.....
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....position that the assessee filed return belatedly and hence, is liable to be visited with interest u/s.234A of the Act. The case of the assessee is that the amount of self-assessment tax paid by him prior to the filing of return should be reduced in the process of calculation of interest under this section. We want to clarify at the outset that the dispute in the extant appeal is only regarding the calculation of interest and not for the duration for which the interest is so chargeable. Section 234A though provides certain amounts of taxes etc. under sub-section (1) to be reduced from the amount of tax on total income determined under regular assessment for the purpose of calculation of interest u/s 234A, but there is no specific mention for the exclusion of the amount of self-assessment tax. It is worthwhile to mention that the Hon'ble Supreme Court in CIT Vs. Pranoy Roy and Another (2009) 309 ITR 239 (SC) has dealt with the chargeability of interest u/s.234A. In that case, the return was due to be filed on 31-10-1995 but the same was actually filed on 29-09-1996, i.e. after a delay of about 11 months. The assessee paid self assessment tax on 25-09-1995, i.e. before the due date o....
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....or the period during which such an amount stood paid, needs to be computed on the proportionately reduced amount of tax accordingly. Under these circumstances, we set-aside the impugned order and remit the matter to the file of the AO for calculating the amount of interest u/s.234A afresh after considering date-wise payments of self-assessment tax made by the assessee, both before and after the due date u/s 139(1)......" 7. The facts and issues raised in the present appeal are broadly similar to the facts and issues in group cases of assessee (supra). Therefore, we direct the Assessing Officer to comply with the directions of Tribunal in group cases of assessee (supra) and decide the same. The Assessing Officer shall give reasonable opportunity of hearing to the assessee while deciding the issues. Thus, the grounds raised by the assessee are partly allowed as above. 8. In the result, the appeal of assessee is partly allowed as above." 6. Now, the department has filed the present Misc. application seeking rectification of order of the Tribunal stating that the Tribunal has wrongly presumed that in any case where there is an addition of more than Rs. 10 lakhs in a case se....
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....ment: "(a) The Tribunal has power to rectify a mistake apparent from the record on its own motion or on an application by a party under s. 254(2) of the Act; (b) An order on appeal would consist of an order made under s. 254(1) of the Act or it could be an order made under sub-section (1) as amended by an order under sub-s. (2) of s. 254 of the Act; (c) The power of rectification is to be exercised to remove an error or correct a mistake and not for disturbing finality, the fundamental principle being that power of rectification is for justice and fair play; (d) That power of rectification can be exercised even if a mistake is committed by the Tribunal or even if a mistake has occurred at the instance of party to the appeal; (e) A mistake apparent from record should be self-evident, should not be a debatable issue, but this test might break down because judicial opinions differ and what is a mistake apparent from the record cannot be defined precisely and must be left to be determined judicially on the facts of each case; (f) Non-consideration of a judgment of the jurisdictional High Court would always constitute a mistake appar....