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TMI Blog2007 (8) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... rt was delivered by M. M. KUMAR J. - This order shall dispose of I. T. R. Nos. 23 and 26 of 2002, which emerge from the common order dated November 26, 1997, passed in respect of the assessments years 1976-77 and 1980-81. The facts are being referred from I. T. R. No. 23 of 2002. The details in respect of the abovementioned references are as under: Sl. No. ITR Nos. Arising out of Assessment year Date of the order of the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar 1. 23 of 2002 ITA No. 489 (ASR)/1996 1976-77 26-11-1997 2. 26 of 2002 ITA No. 493 (ASR)/1996 1980-81 26-11-1997 2. At the instance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years 1984-85 to 1990-91 disclosing therein interest income as also the appropriate amount of capital gain arising out of the said compulsory acquisition of land. The Assessing Officer sought to assess interest on accrual basis as interest was allowed by this court right from the assessment year 1974-75. This exercise was supported by the judgment of the hon'ble Supreme Court in the case of Rama Bai v. CIT [1990]181 ITR 400. However, the assessee resisted and insisted for reassessment of interest accruing from the assessment year 1984-85 onwards. As a consequence, proceedings under section 147 of the Act were initiated and notices were served under section 148 on the assessee on January 13, 1992, for both the assessment years in additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated with effect from April 1, 1985. It is also quite clear where the cases are reopened under section 147, the Central Board of Direct Taxes has given clarification regarding the years from which the amendment of Explanation 2 is applicable and accordingly the amendment is applicable from the assessment year 1984-85. Similarly regarding charging of interest under section 215/217, section 215(6) related to the assessment under section 147, the power to charge interest under sections 216 and 217 is effective from April 1, 1985, i.e., from the assessment year 1985-86. The Central Board of Direct Taxes circular reproduced in [1985] 152 ITR (St.) 29 at page 37, makes it clear that in case assessment is made under section 147 for the first time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the amount of tax on which interest was payable under this sub-section has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly, and- (i) in a case where the interest is increased, the Income-tax Officer shall serve on the assessee, a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall apply accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded." 6. The aforementioned Explanation was added with effec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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