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TMI Blog2020 (10) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income has not been furnished under sub- Sections (1) and (4) of Section 139 or in response to the notice under sub-Section (1) of Section 142 and / or is not furnished after due date. Assessee is liable to pay simple interest at the prescribed rate for every month. It is also not in dispute that if an order of assessment get effaced, it ceases to exist and a fresh order of assessment has to be passed - in the case of MODI INDUSTRIES [1995 (9) TMI 324 - SUPREME COURT ] has held that the expression regular assessment has to be deemed to have been completed on the date when first order of assessment has been passed and not when modified order of assessment has been passed, as the assessee cannot be penalized for lapse of tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment consequent upon set aside by the order of the High Court interest u/s 234 A, B C can be levied as if such an order is a regular assessment which alone attracts such levy of interest. 2. Facts leading to filing of the appeal briefly stated are that assessee on 13.09.1994 filed its return of income as a registered firm for the Assessment Year 1992-93. The Assessing Officer, by an order dated 30.03.1995, inter alia held that the assessee is not carrying on any business activity and treated it as an Association of Persons and completed the assessment. The Assessing Officer quantified the interest under Section 234A, B and C at ₹ 2,04,170/-, ₹ 3,89,250/- and ₹ 250/- respectively, that is an aggregate sum of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25.11.2010, maintained its earlier order which was set aside by a Bench of this Court. The assessee preferred an appeal. The Commissioner of Income Tax (Appeals), by an order dated 31.07.2012, determined the status of the assessee from Association of Persons to a firm, but upheld the levy of interest. The Tribunal, by an order dated 07.02.2014, inter alia held that original order of assessment which has been effaced, is restored with all its characteristics of a regular assessment for the purpose of levy of interest under Section 234A, B and C of the Act. In the result, the appeal preferred by the assessee was dismissed. In the aforesaid factual background, the assessee has approached this Court. 5. Learned counsel for the assessee, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the same is passed under Section 143(3) of the Act and in view of the decision of the Supreme Court in MODI INDUSTRIES, supra, the expression regular assessment has to be deemed to have been completed on the date when first order of assessment has been passed and not when the modified order of assessment has been passed. It is further submitted that the Tribunal has rightly held that interest is chargeable upto the date of first assessment order passed by the Assessing Officer and the view taken by the Tribunal is just and proper and relief has rightly been granted to the assessee. In support of his submissions, he has placed reliance on the decision of the Supreme Court in COMMISSIONER OF INCOME-TAX Vs. ANJUM M.H. GHASWALA 252 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4) of Section 139 or in response to the notice under sub-Section (1) of Section 142 and / or is not furnished after due date. In the aforesaid circumstances, the assessee is liable to pay simple interest at the prescribed rate for every month. It is also not in dispute that if an order of assessment get effaced, it ceases to exist and a fresh order of assessment has to be passed. The Supreme Court in the case of MODI INDUSTRIES, supra , has held that the expression regular assessment has to be deemed to have been completed on the date when first order of assessment has been passed and not when modified order of assessment has been passed, as the assessee cannot be penalized for lapse of time between the first assessment order and modif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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