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TMI Blog1985 (1) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... on of charging of interest was not raised in the said appeals. Subsequently, the assessees moved applications under section 154 of the Act before the ITO and submitted before him that interest under sections 139(8) and 217 could not be charged in proceedings initiated under section 148. The said plea of the assessees was rejected by the ITO by pointing out that the aforesaid submissions involved interpretation of law about which the different High Courts had expressed themselves differently and as such it could not be regarded as a mistake apparent from the record, which could be rectified under section 154. The assessees appealed against the aforesaid orders of the ITO to the AAC, who directed the ITO not to charge interest. For this purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Allahabad High Court in the case of Smt. Jagjit Kaur relates itself with, the proceedings for penalty initiated under section 273(a) of the Act. The said section as it obtained at the relevant time provided, inter alia, as follows : " If the Income-tax Officer in the course of any proceedings in connection with the regular assessment. . . " [Emphasis supplied] Their Lordships were considering the scope of the wordings italicised above and in that connection they noted that regular assessment having been defined under clause (40) of section 2 of the Act as an assessment made under section 143 or section 144 of the Act, the proceedings in connection with the regular assessment would mean proceedings initiated under section 139 and te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under section 154 would be justified. 7. Sub-section (8) of section 139 does not concern itself with the charging of penalty it concerns itself with the charging of interest for the late submission of the return of income. It reads, so far as it is relevant for our purpose as follows : " 8(a) Where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then (whether or not the Income-tax Officer has extended the date for furnishing the return under sub-section (1) or sub-section (2), the assessee shall be liable to pay simple interest at twelve per cent per annum, reckoned from the day immediately following the specified date to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion (2) of section 139 and, therefore, the provisions of sub-section (8) would apply thereto. If this were not so, the provisions of clause (iv) of rule 117A will be otiose. Let us, therefore, examine section 148 with a view to find out if it provides the basis for clause (iv) extracted above. Section 148 reads as follows : " (1) Before making the assessment, reassessment or recomputation under section 147, the Income-tax Officer shall serve on the assessee a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 139 ; and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that sub-section." [Emphasis supplied] T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case, so far as the provisions of section 139(8) were concerned. 9. Section 217 provides that : " (1) Where, on making the regular assessment, the Income-tax Officer finds that any such person as is referred to in sub-section (3) of section 212 has not sent the estimate referred to therein, simple interest at the rate of twelve per cent per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in sub-section (5) of section 215." [Emphasis supplied] ' Regular assessment ' has been defined, as noted earlier, under section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 139 or in terms of section 147. For the purpose of limitation, of course, separate provisions have been made for the proceedings initiated under section 139 and those initiated under section 147, for they relate to different time schedules. But nowhere has it been stated that a proceeding initiated under section 147 cannot be culminated in terms of section 143 or section 144, or that the procedure of assessment provided in Chapter XIV will not apply to proceedings initiated under section 147. In fact, there are no other procedural section for making assessments under the Act than those mentioned in Chapter XIV and section 147 is part of the Chapter XIV dealing with procedure for assessment. Notice issued under section 147, read w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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