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TMI Blog2021 (12) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... llant was ₹ 1,63,41,650/-. In the regular assessment proceeding completed on 28/03/1988, the total income was determined at ₹ 2,74,47,780/- and interest under Section 215 of the said Act amounting to ₹ 13,67,999/- was charged. In the Appeal filed by the Assessee, the amount of interest was reduced to ₹ 8,53,650/-. In the facts of the case, since the interest under Section 215 was charged in the regular assessment order, the Assessing Officer had the power to charge interest under Section 215 of the Act, while carrying out reassessment. Section 215(4) empowers the Assessing Officer to waive or reduce the amount of interest chargeable under section 215 under circumstances prescribed in rule 40 of the Income Tax Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (PER : AMIT B. BORKAR. J.) :- 1. In this appeal under Section 260-A of the Income Tax Act, 1961, three questions of law have been formulated, these being as follows: (i) Whether on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that a fresh assessment which has been made by the Assessing Officer to give effect to the directions of the Commissioner of Income Tax under Section 263 of the Act setting aside the original assessment, would constitute a regular assessment for purposes of section 215 of the Act ? (ii) Whether on the facts and in the circumstances of the case and in law, the Assessing Officer is entitled to charge interest under Section 215 of the Act despite the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved by the action of the Assessing Officer in charging interest under Section 215 of the Act, the Appellant filed an application dated 8th July 1988 for waiver of interest under Section 215(4) of the Act read with Ruled 40 of the Income-tax Rules, 1962 ('the Rules). The Deputy Commissioner of Income Tax passed an order dated 20th March 1989 under Rule 40(1) of the Rules holding that the delay in finalisation of the assessment was not attributable to the Appellant and waived the interest under Section 215 of the Act beyond one year of the filing of the return of income. The Deputy Commissioner of Income Tax accordingly re-calculated the interest chargeable under Section 215 at ₹ 4,13,630/- and waived the balance of ₹ 4,40,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax (Appeals) vide an order dated 28th September 1992 holding that interest could not be charged under Sections 215 or 139(8) unless it has been charged earlier or it falls within the meaning of Sections 215(3) or 139(8)(b) of the Act. 8. Being aggrieved by order of the Commissioner (Appeals) with regard to the issue of levy of interest under Section 215, the Assessing Officer filed an appeal before the Tribunal. While challenging said order, the Assessing Officer accepted that part of the order of the Commissioner (Appeals), which deleted the levy of interest under Section 139(8) of the Act and confined the Appeal to the deletion of interest under Section 215(6) of the Act. The Tribunal by impugned order restored interest levied by asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel for Revenue, fairly accepted as an officer of the Court that the word regular assessment needs to be interpreted as the original assessment. He submitted that if the Appellant is seeking waiver of interest, the Appellant was required to file a new application for waiver after the order of re-assessment and in the absence of such application, the Tribunal was justified in restoring the order of Assessing Officer directing Appellant to pay interest as per Section 215 of the Act. 11. We have heard the parties and perused the material on record. Section 215 of the Act makes it clear that the Assessee is required to pay interest where he has paid advance tax less than 75% of the assessed tax, the Assessee is required to pay simple i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar after the submission of the return; or (2) .. (3) .. (4) .. 15. In the light of facts of the case, Deputy Commissioner of Income Tax, Bombay, by order dated 20/03/1989 in the exercise of power under Rule 40 of Income Tax Rules, held that delay in finalization of assessment is not attributable to Assessee and therefore the Assessee is not liable to pay interest under Section 215 of the Act beyond the period of one year from the date of filing of return. Accordingly, the Appellant was held to be liable to pay an amount of ₹ 4,40,020/-. The order of Dy.CIT, Bombay, dated 20/03/1989, has not been challenged by Revenue or Appellant, with the result said order attained finality. In the absence of challenge to the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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