9911796707
TMI Blog1961 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessments on the appellant for the years 1947-48 to 1952-53 were originally completed on different dates, which it is not material to mention, on particular total incomes. These assessments were made under section 23(3) of the Indian Income-tax Act. Subsequently, the Income-tax Officer reopened the assessments under section 34 of the Act and recomputed the appellant's total incomes for the different years at figures, which were in excess of the original figures. There is no dispute as regards this reopening and reassessment under section 34 of the Act. But, in the demands based on the reassessment dated February 28, 1957 the Income-tax Officer included certain sums as interest payable under section 18A(6) of the Act. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention. His argument was that the expression regular assessment in sub section (6) of section 18A of the Act will not apply to a reassessment after reopening the original assessment under section 34 of the Act. The learned counsel for the Department contended that the assessment under section 34 would also fall within the category of regular assessments. Panchapakesa Ayyar, J., disposed of this controversy in a very simple manner. He observed: I fail to see how a 'reassessment' will not be a 'regular assessment.' Surely, it is not an irregular assessment. He compared the reassessment to an amended decree. To us the matter does not appear to be so simple as it appeared to the learned judge. We do not read the word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment made under section 23B, or if no such assessment has been made to the date of the assessment (hereinafter called the 'regular assessment') made under section 23 of the income, profits and gains of the previous year for an assessment for the year next following the year in which the amount was payable. The regular assessment therefore, which occurs in the next sub- section, i.e., sub-section (6), must bear the same meaning namely, an assessment made under section 23 of the income.... etc. Learned counsel for the Department met this argument in two ways: (1) by pointing out that the expression regular assessment in sub section (5) of section 18A must be understood in the context as distinct from the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order was set aside by the Appellate Assistant Commissioner on November 15, 1951, and he directed the Income-tax Officer to make a fresh assessment. Such fresh assessment was made on January 25, 1954. The Income-tax Officer allowed the assessee interest on the advance payment from the date of payment till March 30, 1948. The contention of the assessee was that he was entitled to interest up to January 25, 1954. The contention on behalf of the assessee was that the date of the regular assessment, i.e., the date of the assessment under section 23 of the Act, must mean the date of a valid and effective assessment and such assessment was only the assessment made after remand on January 25, 1954. There was no doubt a prior assessment on March 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on (6) of section 18A, we consider that the ratio decidendi of the decision will apply equally to the appeals before us. Sub-section (6) also contains two termini. One is fixed in Sub-section (6), namely, the first day of January in the financial year in which the tax was paid. The other terminus is the date of the regular assessment. There is also another condition in sub-section (6), which throws some light and that is this. Interest under this sub-section is payable only where in any year an assessee has paid tax under sub-section (2) or sub-section (3) on the basis to his own estimate and the tax so paid is less than 80 per cent. of the tax determined on the basis of the regular assessment. Now, if a regular assessment under section 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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