Law:

Section:

THE INCOME TAX REPORTS VOLUME 306-2008 [2008] 306 ITR 1 (HP) HIGH COURT OF HIMACHAL PRADESH Commissioner of Income-tax v. Prakash Nath R.B. MISRA AND SANJAY KAROL, JJ. I.T.A. NOS. 8, 9, 12 AND 14 OF 1999 JUNE 17, 2008 Section 154 of the Income-tax Act, 1961 - Rectification of mistakes - Apparent from records Where rectification was made under section 155 to include correct share income of assessee from firm to which assessee consented, no notice was required to be issued to assessee before levying interest under sections 139(8)/215/217 in rectification proceedings The assessee derived share income from a firm. The assessment being provisional it was subjected to rectification under section 154/155. The assessee was issued show-cause notice indicating that the assessment order required to be amended under the provisions of section 154/155 which would have the effect of 'enhancing the assessment/reducing the refund/increasing the liability'. Opportunity to present and plead the case was adequately afforded to the assessee. To the proposed revision/rectification, the assessee issued no objection and as such the assessment was revised and the revised share was adopted and the total income of the assessee was determined. In the said order the assessee was also directed to pay interest under section 139(8)/215/217. The question was whether notice was to be issued to assessee before levying interest. Held that section 215 requires only issuance of 'notice of demand' in the prescribed form specifying the 'sum payable'. The requirement of the statute is to only issue the notice of demand in contrast with a show-cause notice, which is not envisaged under the statute. That the assessee had the adequate opportunity to present and plead its case was evident from the fact that a show-cause notice indicating the rectification of original assessment which may entail enhancement of assessment/increase of liability had already been issued to the assessee to which he had consented/not objected. Therefore, in the revision order passed under section 154/155, for charging interest under section 139(8) and 215 notice before levying of interest was not required to be issued. Section…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492