Retracting interest on refund under Section 244A via rectification

Facts: Assessments for the relevant AY happened via Section 143(3) read with 147 for the assessee. Subsequently AO noticed that since the refunded tax was less than 10% of the assessed tax he withdrew the interest under Section 244A on the refund and passed a rectification order under Section 154. On appeal CIT(A) quashed the rectification citing that it was not a mistake apparent on record besides acceding to the assessee's plea that Section 244A(1)(b) would apply only for a regular assessment and for one under Section 143(1) and not for such cases like that of the assessee's. Aggrieved revenue went in higher appeal -

Held against the revenue that when the meaning of "regular assessment" itself could have varied meanings, such a compex point was never one which can be reversed under rectification proceedings under Section 154 citing it was a mistake apparent on record. The interest on refund cannot be clawed back in a rectification.

Applied:D. Swarup, ITO v. Gammon India Ltd. (1983) 141 ITR 841 (Bom) : 1983 TaxPub(DT) 0487 (Bom-HC), T.s. Balram, ITO v. Volkart Bros. (1971) 82 ITR 50 (SC) : 1971 TaxPub(DT) 0355 (SC)

Case: DCIT v. Ashoka Buildcon Ltd. 2023 TaxPub(DT) 0640 (Pune-Trib)