Section 35 - Amendment of section 214 - Taxation Laws (Amendment) Act, 1984

35. Amendment of section 214. In section 214 of the Income-tax Act, (a) in sub-section (1), for the words tax determined on regular assessment , the words assessed tax shall be substituted; (b) for sub-section (1A), the following sub-section shall be substituted, namely: (1A) Where as a result of an order under section 147 or section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount on which interest was payable under sub-section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and in a case where the interest is reduced, the Income-tax Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest payable and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly. ; (c) after sub-section (2), the following Explanations shall be inserted, namely: Explanation 1. In this section, assessed tax shall have the same meaning as in sub-section (5) of section 215. Explanation 2. Where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this section. .