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TMI Blog1992 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... e Department under section 133A of the Act at the business premises of the assessee at Berhampur on 20-9-1985, it was known that the assessee derived taxable income. But he had filed no return of his income for the year under consideration. The Assessing Officer, therefore, initiated proceedings under section 147(a) of the Act and by his notice under section 148 of the Act required the assessee to file return of his income. Thereupon, the assessee filed the return of his income on 22-9-1986 for the first time for the year under consideration declaring a total income of Rs. 41,500. It was under these circumstances that the Assessing officer charged interest under section 139(8)/217 of the Act in this case. 3. In appeal, the DC (Appeals) ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that since the return for the assessment year under consideration had been filed for the first time under section 147 and that too on 22-9-1986, when Explanation 2 to section 139(8) and sub-section (6) of section 215, as amended by the aforesaid Taxation Laws (Amendment) Act, 1984, had already come into force, interest under sections 139(8) and 217 of the Act was clearly chargeable. The learned Departmental Representative further submitted that the cases relied on by the DC (Appeals) were not applicable to the facts of the present case inasmuch as they were rendered before coming into force of the amended provisions of Explanation 2 to section 139(8) and section 215(6) of the Act. 5. The learned counsel for the assessee, on the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amended provisions of Explanation 2 and section 215(6) read as under : " Section 139(8) : 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 purpose of this sub-section." " Section 215(6) : 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 and sections 216, 217 and 273." A reading of the above provisions would clearly show that if an assessment is made for the first time under section 147, in relation to an assessment year, the said assessment sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1985 or say after delay of years should not be made liable to any interest but an assessee filing his return for assessment year 1985-86 with a delay of one or two months should be required to pay interest under sections 139(8) and 217 of the Act. It would not be a proper and equitable interpretation of the provisions of an amending Act, I am confident of. The argument is dismissed. 8. Now, it is an undisputed fact that the return for the year under consideration was filed by the assessee for the first time on 22-9-1986 in compliance of the notice issued under section 148 of the Act read with section 147(a). It is thus beyond any dispute that when such a return had been filed by the assessee the amended provisions of sections 139(8) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such change, the ratio laid down in the aforesaid two decisions does not apply to the facts and circumstances of the present case. 10. In the assessee's case for the assessment years 1980-81 and 1981-82 the point of retrospective effect of the provisions of Explanation 2 to section 139(8) and section 217 was no doubt raised before the Tribunal, but the Tribunal recorded no finding on this subject. The Tribunal had decided the case merely relying on the decision of Karnataka High Court in Charles D'Souza's case which I have distinguished above. That apart, whereas, in the case before me, it is undisputed fact that the return had been filed when the amended provisions of Explanation 2 to sections 139(8), and 215(6) were already there in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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