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TMI Blog1989 (4) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... und sterling, the Tribunal was right in holding that for the purpose of computation of the admissible amounts of depreciation under section 32(1)(iii) and/or development rebate and profit under section 41(2) of the Act for the assessment years 1968-69 and 1969-70, the written down value of the fixed assets should be determined, not in pound sterling, but in equivalent amount of rupees ? (ii) Whether, on the facts and in the circumstances of the case, revision of the written down value of the assets comprising service lines acquired prior to April 1, 1961, which written down value had been correctly arrived at under the Indian Income-tax Act, 1922, was required for the assessment years 1968-69 and 1969-70 by virtue of the definition of 'ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said decision, we answer this question in the negative and in favour of the assessee. We shall deal with the fourth question separately. The only question which has been referred at the instance of the Commissioner is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 6,52,105 for the assessment year 1968-69 and Rs. 8,52,078 for the assessment year 1969-70 being the additional expenses incurred by the assessee due to devaluation of the Indian rupee in redeeming its Sterling debentures was an expenditure wholly and exclusively laid out for the purposes of its business ?" This question is also concluded by the said decision in the case of the assessee Calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and purported to withdraw the interest which is payable under section 214 of the Act on the basis of the regular assessment, i.e., the first assessment. Such interest amounted to Rs. 12,09,093. The assessee contended that interest was payable on the basis of the regular assessment which meant the first assessment which was made by the Income-tax Officer and the amount which was payable under section 214 of the Act cannot be withdrawn on the basis of the subsequent order of assessment which has been made pursuant to the direction of the Commissioner of Income -tax under section 263 of the Act. According to the assessee, regular assessment should mean the first assessment and not any assessment which is made pursuant to an order made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer. In any event, even if the decision in the case of Chloride India Ltd. [1977] 106 ITR 38, (Cal) is to be followed, in that event, the said decision merely lays down that the expression "regular assessment" occurring in section 214(1) should be the assessment made by the Income-tax Officer initially or the first assessment made by the Income-tax Officer, if there is no appeal therefrom, but in a case where there is an appeal, the order passed by the Income-tax Officer finally to give effect to the directions, if any, of the appellate authority. In the present case, there was no appeal against the order of the first assessment and, therefore, even if the decision in the case of Chloride India Ltd. [1977] 106 ITR 38 (Cal), is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 214(1) had been reduced, the interest shall be reduced accordingly and the excess, if any, paid shall be deemed to be tax payable by the assessee. Section 214(lA) speaks of a regular assessment. In such regular assessment, the amount on which interest was paid under section 214(1) is reduced. Such amount could be reduced only after the original assessment is made. A subsequent regular assessment could only mean a revised regular assessment giving effect to the direction of the appellate or revisional authority. It may be mentioned that under section 215(3) where interest is payable by the assessee, a provision has been made to the effect that as result of rectification, appeal, revision, etc., if the amount of assessed tax is subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 214 even in the absence of an order of assessment. Such a view is also fortified by the provisions of section 215 of the Act, where the assessee has to pay interest when the advance tax paid by him falls short of the tax determined on regular assessment. The words "regular assessment" are used in section 215 also and it is difficult to visualise situation where the assessee would be asked to pay interest under section 215 of the Act when the regular assessment itself has been vacated by the Commissioner under section 263 of the Act. The provisions of section 215 are in pari materia with the provisions of section 214 of the Act and it is quite logical to presume that no interest is payable by either the Government or the assessee when ..... X X X X Extracts X X X X X X X X Extracts X X X X
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