9911796707
TMI Blog1993 (3) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... 28-8-1983 as a result of which its income was reduced to Rs. 46,25,050. Regarding charging of interest he observed that charging interest was consequential and was approved, and that the Assessing Officer may charge interest on revised income after appeal effect. The Revenue went in appeal against that order to the Tribunal and Tribunal restored some major additions which were made by the Assessing Officer, vide its order dated 30-5-1985. Consequently assessee's income was recomputed by the Assessing Officer at Rs. 57,65,127 vide his order " under section 253 " dated 30-4-1986/29-5-1986. While passing this order he observed in the end " Charge interest under sections 139(8) and 215/217 as per rules ". In the ITNS150 dated 30-4-1986 interest under section 139(8) at Rs. 6,480 + under section 215/217 at Rs. 85,418 was charged after allowing 50 % waiver against each and giving credit for interest already paid. The assessee moved an application under section 154 dated 9-6-1986 in which inter alia, in paras 3 and 4 it wrote as under : " 3. The interest charged under section 139(8) is not correct as the same is chargeable only on the basis of regular assessment i.e. first order of asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us. 5. We have given all the details and quotations because, as we would see later, there were arguments both before the CIT(A) and before us which are not borne out by these facts on record and even the decision of the CIT(A) now in appeal before us, is given on the basis of submissions and assumptions which are not in conformity with these facts on record. We may mention that the relief given by the CIT(A) is mainly on the basis that once the Assessing Officer vide his order under section 154 dated 15-9-1986 had accepted that interest under section 139(8) and 215/217 was wrongly charged, while giving effect to the order of the Tribunal its charging in the ITNS-150 dated 15-9-1986 was not valid and that the IAC (Asst.) had inadvertently signed the ITNS-150 and that it was a mistake apparent from record for which the assessee was entitled to move another application under section 154 and that the successor IAC (Asst.) could not modify that order or reject assessee's application under section 154 unless that order was modified by CIT Jaipur in revision. On this basis the ld. CIT(A) gave the order to the following effect : " Thus, accepting the appellant's contention I would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only be reduced if the income was reduced, but it could not be increased. He pointed out that it was only w.e.f. 1-4-1985 that these provisions were amended and only after the amendments interest could be increased or enhanced if the assessed income was increased or enhanced as a result of rectification, appellate or revision orders. He referred to the decision of the Ahmedabad Bench of the ITAT in the case of ITO v. Coronation Flour Mills [1990] 32 ITD 550 to the effect that these amendments were prospective and not retrospective. In these circumstances, according to Shri Ranka, in the first instance, the amount of interest under section 139(8) and 215/217 which was reduced on giving effect to the orders of CIT(A) dated 28-8-1983, could not be increased even after the income was increased as a result of Tribunal's order dated 30-5-1985 partly allowing Revenue's appeal. According to Shri Ranka the interest under these sections could be charged only on making of " regular assessments " which meant assessments only under section 143 and 144 and on the basis of any assessment which was made under section 147, 154, 155, 250, 254, 260, 262 or 263 interest could be reduced if the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, 3 and 4 of the application are correct. But we find that he had nowhere mentioned or written, what is imputed to him, by or on behalf of the assessee, that the charging of interest under sections 139(8) and 125/127 while giving effect to Tribunal's order was a mistake and that interest under section 139(8) and 125/127 was " not leviable " while giving effect to Tribunal's orders. We further find that the acceptance of mistakes by IAC (Asst.) in his order dated 15-9-1986 with reference to paras 3 and 4 of assessee's application dated 9-6-1986 was executed by him in the ITNS-150 dated 15-9-1986 in which the net interest payable under section 139(8) was reduced to Rs. 5,325 from Rs. 6,480 and under section 215/217 was reduced to Rs. 64,293 from Rs. 85,418 which was charged in the ITNS-150 dated 30-4-1986 as per order dated 30-4-1986/29-5-1986. It is, thus, clear that there is no truth or substance in the application under section 154 sent by Registered Post and given to IAC (Asst.) on 5/12 (Page 5 of assessee's Paper Book) and which is the basis of present proceedings before us, where in para 2 the assessee had written " In the order under section 154 dated 15-9-1986 it has been or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) to section 139(8) and 215(3) the mention of section 147 and 263 was not there and hence only reduction of interest and income as a result of orders under sections 154, 250, 254, 260, 262 and 264 was contemplated. But after the amendment, sections 147 and 263 have been mentioned and hence the increase of income and interest as a result of orders under sections 147 and 263 has also to be contemplated. In assessee's own case Multimetals Ltd. the point in issue was charging of increased interest as a result of order under section 263. The assessment year involved was 1977-78 and hence the Hon'ble Rajastan High Court had observed that an order passed to give effect to the order of CIT under section 263, as per the language of the Act itself, was a " fresh assessment " and not a " regular assessment " on the basis of which alone interest under section 139(8)/215/217 could be charged. Similarly in the case of Mannalal Nirmal Kumar it was held that " Re-assessment " under section 147 was not a " regular assessment ". However, so far as giving effect to orders of appellate authorities is concerned, it is by now a well-established principle of law that appellate proceedings are only cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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