9911796707
TMI Blog2007 (8) TMI 335X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 the Revenue, the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for brevity, "the Tribunal"), has referred the following question of law for the opinion of this court by exercising jurisdiction under section 256(1) of the Income-tax Act, 1961 (for brevity, "the Act") "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in reversing the order of the learned Deputy Commissioner of Income-tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 addition to others. The assessee filed a return declaring income of Rs. 35,040 plus agricultural income of Rs. 400 in respect of the assessment year 1976-77 and for the assessment year 1980-81 he filed the return declaring income of Rs. 33,290 plus agricultural income of Rs. 700. Interest under section 139(8) was also charged at Rs. 2,610 and Rs. 19,764, respectively. Thereafter, the assessee moved an application under section 154 of the Act asserting therein that the interest was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns 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 then interest could be charged under section215/217 from the assessment year 1985-86 onwards. Apparently, if facts are so, which appears to be as per the statement made by the appellant, before the Deputy Commissioner of Income-tax (Appeals), then a mistake is apparent from law and as such the Assessing Officer is bound to rectify charging of interest because it does not give him power to charge interest under sections 139 and 215/217 for the assessment years 1974-75 to 1982-83 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 effect from April 1, 1985, and the circular issued by the Central Board of Direct Taxes shows that it was to apply in relation to the assessment year 1985-86 and subsequently. The relevant part of the circular issued by the Central Board of Direct Taxes (Circular No. 397, October 16, 1984), as reported in [1985] 152 ITR (St.) 29 at page 37, reads as under: "15.4 Under the existing provisions contained in clause (b) of section 139(8), interest payable by an assessee for delay or default in furnishi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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