Summary
- The ITAT Chennai has quashed a rectification order under Section 154 of the Income Tax Act, ruling it illegal for improperly increasing interest under Section 234A.
- The case involved Pavithra Sugichandran, whose return for AY 2021-22 was filed on March 30, 2022, but e-verified later on May 23, 2022.
- The Tribunal emphasized that e-verification relates back to the original filing date and noted the impact of COVID-19 extensions on compliance timelines.
- This decision could set a precedent for how interest is computed in similar cases, particularly regarding timelines affected by extraordinary circumstances.
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