1990 (8) TMI 13

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..... 139(8) of the Income-tax Act, 1961, can be charged in respect of an assessment made under section 147 of the Income-tax Act, 1961. Shortly stated, the facts are that the assessee, a registered firm, filed its return under section 148 of the Act on January 29, 1982. The Income-tax Officer charged interest under section 139(8) of the Act treating the firm as an unregistered firm for the purpose o .....

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..... e case, the Appellate Tribunal was justified in confirming the finding of the Commissioner of Income-tax (Appeals) that interest under section 139(8) of the Income-tax Act, 1961, was not leviable where the assessment is made under section 147 of the said Act?" We have already noted that this case relates to the assessment year 1980-81. Section 139(8) has been amended and Explanation 2 has been a .....

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..... vinces Manganese Ore Co. Ltd. v. CIT [1986] 160 ITR 961, has held that levy of interest is part of the process of assessment. Although sections 143 and 144 do not specifically provide for the levy of interest and the levy is, in fact, attributable to section, 139(8) or section 215, it is nevertheless a part of the process of assessing the tax liability of the assessee. The condition precedent for .....

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..... on 139(8). A similar view has been taken by the Patna High Court in Prakash Lal Khandelwal v. ITO [1989] 180 ITR 604. There, the assessment years involved were 1980-81 to 1982-83. Assessments were completed pursuant to the returns filed in response to notices under section 148 for those years. Interest under section 139(8) and 217 was charged. The charge of interest was challenged in a writ peti .....

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..... ourts is that, where the assessment is made under section 143(3) read with section 147, no interest could be charged under section 139(8) inasmuch as such assessment is not a " regular assessment " within the meaning of section 2(40) of the Act. For the reasons aforesaid, we answer this question in the affirmative and in favour of the assessee and against the Revenue. No order as to costs. B .....

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