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TMI Blog2017 (7) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment where interest chargeable to tax has escaped assessment for the reason of the omission or failure on the part of the assessee to make a return. This is precisely what has happened in the present case. The judgement of the Supreme Court in case of Standard Chartered Finance Ltd. [2016 (3) TMI 150 - SUPREME COURT ] cannot be seen as laying down the proposition that even if no assessment was on account of return not having been filed by the Assessee, Section 10 would not apply and the Assessing Officer would be precluded from assessing or reassessing the chargeable interest. As noted clause (a) of Section 10 envisages a clear situation where for the reason of omission or failure on the part of the assessee to make a return, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion was given up in the following manner: At the time of hearing, the ld. counsel for the assessee was fair enough to submit that he was not pressing common ground Nos. 1(a) (b) which relates to assessee s objection against validity of Assessing Officer s action in issuing notice u/s. 10 of the Interest Tax Act and, consequently, against the validity of assessments. 2.2 Against the judgement of the Tribunal, assessee preferred Tax Appeal No. 154 of 2007 which was admitted on 17.09.2007 for considering the following substantial question of law: ( A) Whether in the facts and under the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the appellant is liable to pay interest tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the additional question sought to be raised by the assessee. Present was the case where the assessee had filed no return for the relevant assessment year. The Assessing Officer believing that chargeable interest had escaped assessment issued notice under Section 10 of the Act. The assessee filed a return of Nil chargeable interest. The Assessing Officer, therefore, carried out the assessment of escaping interest under Section 10 of the Act. 5. Section 10 of the Interest Tax Act reads as under: 10. Interest escaping assessment. If- ( a) the [Assessing officer] has reason to believe that by reason of the omission or failure on the part of the assessee to make a return under section 7 for any assessment year or to disclos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t any time serve on the assessee a notice and proceed to assess or reassess the amount chargeable to interest tax in terms of Section 7 of the Act. Clause (a) thus clearly envisages assessment or reassessment where interest chargeable to tax has escaped assessment for the reason of the omission or failure on the part of the assessee to make a return. This is precisely what has happened in the present case. 7. We may in context of such facts refer to the decision of the Supreme Court in case of Standard Chartered Finance Ltd. (supra) . It is well settled that a ratio of the judgement can be discerned on the basis of facts giving rise to the judgement. The ITR publication contains also the judgement from the High Court which travelled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, there cannot be a notice for reassessment inasmuch as the question of reassessment arises only when there is an assessment in the first instance. 8. The observations and conclusions of the Supreme Court noted above must be appreciated in facts of the case. It was not a case where the assessee had not filed a return at all and because of which there was no assessment. It was a case where the assessee did file a return but the Assessing Officer did not frame any assessment and issued the notice for reassessment long after the last date for framing the assessment. The judgement of the Supreme Court cannot be seen as laying down the proposition that even if no assessment was on account of return not having been filed by the Assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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