Law:

Section:

Section 154 of the Income-tax Act, 1961 - Rectification of mistake - Apparent from records - By an order dated 29-9-1996, Assessing Officer computed assessee's liability to pay interest under section 234B - Issue was taken in appeal and after Tribunal disposed of assessee's appeal, Assessing Officer passed an order dated 7-4-2005 to give effect to order of Tribunal - However, while doing so, he failed to adhere to procedure under section 140A(1) and, therefore, on 27-4-2006, he passed another order under section 154 for rectification of said mistake - Assessee contended that order dated 27-4-2006, passed by Assessing Officer was barred by limitation under section 154(7) inasmuch as computation of interest under section 234B was determined by order dated 29-9-1996 which ultimately culminated in order dated 23-3-1998 passed under section 143 and, therefore, period of limitation must be determined with reference to dates of aforesaid orders - Whether through order dated 27-4-2006, Assessing Officer ventured to correct order dated 7-4-2005 and not any other earlier order which had culminated in order passed by Tribunal and as period of four years as envisaged under section 154(7) had not elapsed between aforesaid orders, order dated 27-4-2006 was passed within period of limitation - Held, yes FACTS By an order dated 29-9-1996, the Assessing Officer computed the assessee's liability to pay interest under section 234B. Said order was culminated in an order dated 23-3-1998 passed under section 143. The issue of payment of interest under section 234B was subjected to challenge before the Commissioner (Appeals) as well as the Tribunal. After the Tribunal disposed of the assessee's appeal, the Assessing Officer passed an order dated 7-4-2005 to give effect to the order of the Tribunal. However, while doing so, he failed to adhere to the procedure of making payment under section 140A(1) and, therefore, for rectification of the said mistake, he issued notice under section 154 and thereafter, passed an order under section 154 on 27-4-2006. The assessee filed an appeal against said order contending that same was barred by limitation inasmuch as period of limitation envisaged…

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