9911796707
TMI Blog1996 (10) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ular assessment when Explanation 2 to section 139(8), introduced with effect from April 1, 1985, holds it to be a regular assessment ? " A survey under section 133A of the Act was conducted by the Department at the business premises of the assessee on February 17, 1986, and it appeared that certain income of the assessee had escaped assessment. The Assessing Officer, therefore, issued notices under section 148 of the Act for both the assessment years 1983-84 and 1984-85. Returns were filed by the assessee. Thereafter, the assessments were made for the assessment years 1983-84 and 1984-85. Interest was also levied for both the years under sections 139(8) and 217 of the Act. Since the question sought to be referred relates to the levy of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under : "(40) 'regular assessment' means the assessment made under sub-section (3) of section 143 or section 144." Under sub-section (8) of section 139 of the Act, interest is chargeable on the tax payable on total income, as determined on regular assessment. Similarly, section 217 of the Act also permits the charging of interest up to the date of the regular assessment. The Calcutta High Court in Monohar Gidwany v. CIT [1983] 139 ITR 498, examined the levy of interest in a case where assessment was made under section 147 of the Act. It was held that, though assessment included reassessment, a "regular assessment", for the purposes of section 217, was an assessment under section 143 or section 144. Accordingly, an assessment or re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 148 of the Act, then it was evident that the assessee was assessed under section 143(3) read with section 147 of the Act and, therefore, it was not a "regular assessment". This High Court in Smt. Kamla Vati v. CIT [1978] 111 ITR 248, had also an occasion to examine the term "regular assessment" as defined in section 2(40) of the Act. It was held that an assessment or reassessment made under section 147 could not be considered to be a regular assessment for the purposes of levy of penalty under section 273(a) of the Act. Shri R. P. Sawhney, learned senior counsel for the Department, has argued that Explanation 2 has been inserted in sub-section (8) of section 139 by the Taxation Laws (Amendment) Act, 1984, with effect from April 1, 198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Bros. (P.) Ltd. [1980] 122 ITR 322. There, a question had arisen if interest could be charged under section 139 for the assessment years 1957-58, 1958-59 and 1959-60. The assessee had not filed returns for the aforesaid years within the time prescribed in section 22(1) of the Indian Income-tax Act, 1922. Later on, notice under section 148 of the Income-tax Act, 1961, was issued in the year 1966 and thereupon the assessee filed returns for the three years. The Income-tax Officer completed the assessments and the question then arose whether interest could be levied under section 139(1) of the Act. It was held that interest could not be levied as the substantive law relating to the assessment years 1957-58 to 1959-60 was the Indian Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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