Interest U/s 220(2) to be Recomputed After Rectification – Not From Rectification Date

Ekataa Commercial Centre Private Limited Vs DCIT (ITAT Mumbai) Assessee’s income was originally accepted u/s 143(1) with demand raised. Subsequently, pursuant to rectification u/s 154 (on account of settlement under Vivad Se Vishwas Scheme), assessed income was reduced. However, AO levied interest u/s 220(2) without proper computation details. ITAT held that: Once assessed income is reduced, interest u/s 220(2) must be correspondingly reduced AO failed to provide break-up / basis of interest computation – requires reconsideration Hence, matter remanded to AO for recomputation based on...