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TMI Blog1992 (7) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... for the reason that the Income-tax Officer was not competent to charge any interest under section 217 when the assessment order was made on December 31, 1975, under section 147(a) ?" The brief facts of the case are that the assessee-Hindu undivided family was originally assessed by way of regular assessment on October 3, 1968, on a total income of Rs. 11,051. Thereafter, a settlement petition was moved to the Commissioner of Income-tax (Appeals) on September 26, 1974, which was decided on March 24, 1975, and, pursuant to this settlement, the additional income of Rs. 91,000 was brought to tax for the year under appeal for which a voluntary return was submitted by the assessee on June 28, 1984. The assessment on the said return was complete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure and, if the assessment is made for the first time under section 147, it shall be regarded as regular assessment for the purposes of sections 216, 217 and 273 of the Act. It has further been submitted that the charging of interest is automatic. We have considered the matter. The definition in section 2(40) restricts the meaning of fresh assessment to the assessment made under section 143 or 144. Though the definition clause cannot override the specific language of the section, if it otherwise contemplates. The amendment which has been brought in section 215 by insertion of sub-section (6) cannot be considered to be procedural in nature as it affects the liability and create & a fresh liability of interest and, moreover, it is applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohar Gidwany v. CIT [1983] 139 ITR 498 (Cal) ; (5) D. Swarup, ITO v. Gammon India Ltd. [1983] 141 ITR 841 (Bom) ; (6) CIT v. Ganeshram Nayak [1981] 129 ITR 43 (Orissa). In view of the definition of regular assessment in section 2(40) which has restricted the meaning only to the assessments made under section 143 or 144, the interest under sections 215 and 217 is payable only up to the date of the regular assessment under these sections on the basis of the tax determined on regular assessment. The interest, therefore, cannot be charged up to the date or on the basis of a reassessment made under section 147. In view of this interpretation of law, we are of the view that the view taken by the Income-tax Appellate Tribunal is in accordance w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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