9911796707
TMI Blog1995 (3) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... d on September 27, 1979 ? 2. Whether the Appellate Tribunal's view that the assessment made on September 27, 1979, consequent to the setting aside of the assessment originally made under section 144 of the Act by the Commissioner of Income-tax under section 263 was not a regular assessment and, therefore, the Income-tax Officer was not justified in charging interest under section 139(8) and section 215 of the Income-tax Act, 1961, is sustainable in law ? " The assessee is an individual. In the assessment year 1973-74, the assessee had paid advance tax. The assessment was completed on the basis of best judgment under section 144 of the Income-tax Act on January 24, 1976. Then, the Commissioner of Income-tax, acting under section 263 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stant Commissioner on certain points, the Income-tax Officer passed a consequential order on January 21, 1976, resulting in a refund of Rs. 52,121. As the Income-tax Officer did not grant interest on this refund amount under section 214 of the Income-tax Act, 1961, the assessee filed a revision petition to the Commissioner for grant of interest on the refund amount of Rs. 52,121 which was granted as a result of the order of the officer giving effect to the Appellate Assistant Commissioner's order. This claim having been rejected by the Commissioner on the ground that under section 214 interest was payable only up to the date of " regular assessment " which, is defined by section 2(40) as assessment made under section 143 or section 144, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the Commissioner of Income-tax under section 263 of the Act alone would be the only assessment order which would be a regular assessment order. Therefore, interest under section 139(8) and section 215 of the Act is exigible up to the date of assessment made on September 27, 1979. Accordingly, the view taken by the Tribunal that the first assessment order made by the Income-tax Officer under section 144 alone is a regular assessment order and the subsequent order of assessment made by the Income-tax Officer in pursuance of the order passed by the Commissioner of Income-tax under section 263 of the Act is not a regular assessment, is not correct. In this view of the matter, we answer the questions referred to us in the negati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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