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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 ..... of income under the Interest Tax Act, 1974. The Assessing Officer, therefore, issued notice under Section 10 of the Act for assessing the interest tax liability. In response to such notice, the assessee filed return on 29.01.2002 declaring Nil chargeable interest. The Assessing Officer passed an order of assessment on 28.11.2002 which became subject matter of the appeal before the CIT(Appeals) and then before the Tribunal. Before the Tribunal, one of the questions raised in the appeal memo by the assessee was to the notice of the reassessment. During the course of hearing of appeal before the Tribunal, such a contention was given up in the following manner: "At the time of hearing, the ld. counsel for the assessee was fair enough to subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lenge before the Tribunal earlier. Counsel further submitted that as held by the Supreme Court in case of Standard Chartered Finance Ltd. vs. Commissioner of Income-Tax and Another reported in [2016] 381 ITR 453 when there was no original assessment, question of an order of reassessment in terms of Section 10 of the Act would not arise. 4. For the purpose of the present Civil Application, we may keep the question whether having earlier, before the Tribunal, given up the challenge to the validity of reassessment, could the assessee raise the same, open. We have perused the record in the context 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 assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 7, and may proceed to assess or reassess the amount chargeable to interest- tax, and the provisions of this Act shall, so far as may be, apply, as if the notice were a notice issued under that section." 6. Under clause (a) of Section 10, therefore, in case where an Assessing Officer has reason to believe that by reason of omission or failure on the part of the assessee to make a return or to disclose fully all the material facts necessary for the assessment, chargeable interest has escaped assessment or has been under-assessed or is subject to excessive relief, he may at 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 cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is view that if there was no original assessment order passed, there could be no reassessment under section 10 of the Act. It was in this background, the Supreme Court held and observed as under: "After hearing the learned counsel for the parties, we are of the opinion that the High Court has wrongly not acted upon the ratio laid down in Trustees of H.E.H. the Nizam's Supplemental Family Trust's case which squarely applies in the instant case in favour of the assessee. The ratio of the said judgement is that in those situations where there is no assessment order passed, 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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