9911796707
TMI Blog1997 (12) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, on the facts and in the circumstances of the case and having found that P. A. Abdul Muthalif Rowther v. ITO [1976] 102 ITR 694 (Ker) and 203 ITR 389 (sic) are in support of the Revenue's contention and also in the light of the observation of the Full Bench of the Kerala High Court in Lally Jacob v. ITO [1992] 197 ITR 439, 454 (first paragraph) wherein the Full Bench distinguished CIT v. G. B. Transports [1985] 155 ITR 548 (Ker) and found the same inapplicable to a similar case under consideration, the Tribunal is justified in relying on CIT v. G. B. Transports [1985] 155 ITR 548 (Ker) [FB] and is not such an approach by the Tribunal an affront to the High Court and the conclusion highly strange and strained ? 3. Whether, on the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 217. On second appeal the Tribunal upheld the findings of the Deputy Commissioner of Income-tax (Appeals). It held that even the first assessment made under section 147 of the Act cannot be construed as a "regular assessment" and that prior to April 1, 1985, the expression "regular assessment" could not take within its sweep an assessment made for the first time even though under section 147. The Revenue being aggrieved by the findings of the Tribunal filed the reference applications. That is how these references are coming before us for answer. The Tribunal relied on the following decisions in support of its conclusions : 1. CIT v. G. B. Transports [1985] 155 ITR 548 (Ker) [FB]. 2. Charles D'Souza v. CIT [1984] 147 ITR 694 (Kar). 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act is leviable in a case of an assessment or reassessment made under section 147 of the Act. A similar view was taken by the Division Bench of the Andhra Pradesh High Court in CIT v. Padma Timber Depot [1988] 169 ITR 646 and it held that since the assessment was made under section 143(3) read with section 147 it was not a regular assessment and the levy of interest under sections 139(8) and 217 was not valid. The Tribunal has placed reliance on the Full Bench decision of this court in CIT v. G. B. Transports [1985] 155 ITR 548. Learned senior standing counsel for the Revenue, however, contended that the above Full Bench decision in CIT v. G. B. Transports' case [1985] 155 ITR 548 (Ker) is clearly distinguishable. He further adds tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as was put in a decision of this court---from 'the stupidity of the officer to the cupidity of the assessee'. These may well befall long after the period of time contemplated by section 139 and the various sub-clauses and provisos thereto. To read section 148 as rendering action under section 139 impossible in such circumstances, would be destructive of the very object and purpose of the reassessment proceedings sanctioned by the section. What section 148 enacts is to treat the reassessment proceedings as assessment proceedings and proceed accordingly under section 139 and other provisions of the Act. So understood, we are unable to accept the argument of the counsel for the petitioner. We, therefore, hold that the levy of interest under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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