Re: Order u/s 143(3) subsequently rectified u/s 154 – Interest to be waived under the scheme

An order u/s 143(3) was passed making certain additions. The total income was a loss. Appellant filed appeal on additions made. Subsequently the order u/s 143(3) was rectified u/s 154 making modifications to the income. This resulted in payment of taxes and interest(including 234D). No appeal was filed on the order u/s 154.
My query is whether the interests charged as per order u/s 154, including 234B, will be waived under the scheme.

We presume that the in the order u/s 154 the Assessing officer has made further addition in the rectification order .  The assessee may have  to file an  appeal also against the order u/s 154 of the Act.  If the assessee desires to  avail the advantages of the scheme , the appeal can be filed by making an application for condonation of delay  with supporting affidavit explaining  the delay . When the appeal is condoned , the assessee can  settle the amount is dispute  in respect of original appeal as well as appeal under section 154 of the  Act .  Once the appeals are settled  interest charged u/s 234B will also be settled .

One may have  to consider  whether the rectification order passed by the Assessing Officer  is on debatable issue. If the issue is debatable  it may be desirable to file an appeal with condonation of  delay  with supporting affidavit explaining  the delay .The  assessee may have  a fair chance of succeeding in appeal . Once  the appeal is decided in favour of the assessee, consequential demand and interests will also be quashed . 

 

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