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TMI Blog1991 (2) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. That the learned AAC erred in law and on facts in deleting the disallowance of interest of Rs. 3,600 ignoring the fact that the depositor was a Nepali citizen and s. 40(a) of the IT Act, 1961 clearly prohibits allowance of such deduction. 4. That the learned AAC erred in law and on facts in allowing deduction of Rs. 5,000 under s. 80L ignoring the fact that deduction of Rs. 3,000 only is admissible under that section for asst. yr. 1982-83. 5. That the order of the learned AAC is erroneous in law and on facts and deserves to be vacated and that the order of the ITO deserves to be restored." 2. The learned Departmental Representative and the counsel for the assessee were heard and the material placed before us were perused befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to him, the interest was charged rightly under all the three sections mentioned herein before. He also argued that for charging of interest under s. 215, a distinction should be made in so far as there was no such condition that assessment should not have been completed under s. 148. He also relied on (Co-operative Marketing Society Ltd. vs. CIT (1983) 34 CTR (MP) 290 : (1983) 143 ITR 99 (MP) and argued that the ITO had charged interest rightly and the same should not have been interfered by the AAC. 3. We have perused the sections quoted before us and we have also gone through the case quoted by the learned Departmental Representative and reported at 143 ITR 99. At the very outset we would like to make it clear that the context in w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est was not in accordance with law. This point is further supported by the Hon'ble Karnataka High Court's decision in the case of Charles D'Souza vs. CIT in which again it has been held by their Lordships that the expression "regular assessment" as defined by s. 2(40) means assessment made under s. 143 or s. 144 in contradistinction to assessments under s. 140A, a provisional assessment before its abolition in 1971 and an assessment/reassessment under s. 147. It has been further held in the same decision that when the expression "regular assessment" is been very categorically laid down that the assessments under s. 143/144 fall under a distinct category of assessment and the assessments made under s. 147 are not covered by the expression "r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 made by the assessee several years earlier. The contention to the contrary, therefore, raised by the Departmental Representative are rejected and the AAC's order is upheld. No amount could be disallowed or added under this head. We also find that in earlier years also no addition on this ground had been made. Therefore, we hold that there was no case for restoring the order of the ITO. The point is decided against the Revenue and in favour of the assessee. 5. The next point relates to the disallowance of interest under s. 40(a)(i) of the IT Act, 1961. Sec. 40(a)(i) of the Act reads as under: (i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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