9911796707
TMI Blog1992 (9) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ence relates to the income-tax assessment of the assessee-company for the assessment year 1979-80. The facts as found by the Tribunal are as under " The original assessment of the assessee was completed on December 26, 1979, under section 143(1) of the Income-tax Act, 1961, on the returned income of Rs. 44,010. The assessee objected to the original assessment by filing an application in Form No. 6A. In view of the assessee's objection, the Income-tax Officer issued notice under sub-section (2) of section 143 of the said Act and a fresh assessment was thereafter completed under sub- section (3) of section 143 on July 17, 1982, on a total income of Rs. 1,04,020. In making this regular assessment, the Income-tax Officer charged interest un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, 1982. On further appeal, the Tribunal, however, held that section 2(40) of the Act which defines the expression " regular assessment " does not make distinction between an assessment made under sub-section (1) of section 143 and the assessment made under sub-section (3) of section 143. According to the Tribunal, it was fair to hold that an assessment made under section 143(1) was also a regular assessment. The Tribunal also observed that, if there was any doubt or ambiguity in the provisions of any section of a taxing statute, it was well-settled that the benefit should go to the assessee. The Tribunal, accordingly, directed that the interest charged under section 215 should be recomputed from April 1, 1979, to the date of first assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be in default in respect of the whole or any part of the amount of the tax demanded in pursuance of the assessment under sub-section (1), which is disputed by the assessee and further no interest shall be chargeable under sub-section (2) of section 220 in respect of such disputed amount. Sub-section (3) of section 143 further provides that after hearing such evidence as the Income-tax Officer may require on specified points and after taking into account all relevant material which he has gathered, the Income-tax Officer shall, by an order in writing, make a fresh assessment of the total income or loss of the assessee and determine the sum payable by him or refundable to him on the basis of such assessment. Clause (40) of section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder passed under sub-section (1) of section 143, which was passed on December 26, 1979, even the figure of assessed tax will have A to be taken as determined in that order. But this, in our opinion, will be totally erroneous, since the assessment made under section 143(1) automatically stands set aside once the assessee makes an application objecting to such assessment in Form No. 6A as laid down under clause (a) of sub-section (2) of section 143. If the figure of assessed tax is taken B as per the subsequent order dated July 17, 1982, there is no logic for restricting the period for calculation of interest up to the first order dated December 26, 1979, for the purpose of charging interest under section 215. As is now well-settled, we mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee made on July 17, 1982, under section 143(3) of the said Act for the period from April 1, 1979, to June 30, 1982. In our view, this is the only interpretation which is possible on a harmonious construction of section 2(40) read with section 215 of the said Act. As such, the Income-tax Officer was fully justified in rejecting the assessee's application made under section 154. We accordingly answer the question referred to this court by saying that interest under section 215 is required to be computed up to the date of assessment made under section 143(3) of the said Act and not up to the date of assessment made under section 143(1). The question is answered accordingly in favour of the Revenue. There will be no order as to costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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