2002 (5) TMI 11 - HC - Income Tax

The only question sought to be raised by the Revenue in this appeal is that since the amendment made in section 139(8) where any regular assessment is made for the first time whether under section 143 or under section 147 of the Income-tax Act 1961 for the purpose of levy of interest it is still governed by the provision of section 139(8). - in the present case from the finding of the Tribunal it is apparent that the original assessment for the assessment year 1988-89 was made on December 2 1986 (sic) and thereafter reassessment was made by resorting to section 148. No interest was levied in the course of the original assessment. The interest has been sought to be levied by way of reassessment under section 147. Apparently the contention raised by the Revenue is ill founded on the facts. In view of the meaning of regular assessment which has already been determined by the Supreme Court and the provisions of section 138 have also made it clear that reassessment under section 147/148 is deemed to be a regular assessment only in such cases where assessment under sections 143 and 144 is not made in the first instance. - Apparently the facts of the present case does not fall within the ambit of deeming provision.

Summary

The High Court of Rajasthan dismissed an appeal related to the assessment year 1988-89, stating that reassessment under section 147 is not deemed a regular assessment if the original assessment under sections 143 or 144 has already been made. The appeal was dismissed in limine.