9911796707
TMI Blog2001 (1) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... uent to the order passed in the case of the firm on 27-6-1991, the share income of the assessees was also revised, adopting the correct share of profit from the firm and order under section 143(l)(c) of the Act was passed. In the above order, interest under section 234B of the Act was also levied in the case of both the assessees. 3. The assessees appealed questioning the jurisdiction of the Assessing Officer to pass order under section 143(1)(c) and also the levy of interest under section 234B of the Act. The Commissioner (Appeals) upheld the order passed by the Assessing Officer under section 143(1)(c) and also the levy of interest under section 234B. Aggrieved, the assessees are in appeal before us. 4. Shri K.R. Prasad, Advocate, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended that section 143(1)(c) permits substitution only in cases where the communication under section 143(1)(a) in the case of the firm is made after filing of the return by the partners. 5. On the other hand, the learned departmental representative, Shri N.S. Raghavendra, placed strong reliance on the orders of the authorities below. He contended that the amendment brought about by the Finance Act, 1992, is only procedural and not substantive. Therefore, the Assessing Officer had all the powers to send intimation under section 143(1)(c) on 11-12-1995. 6. We have very carefully considered the rival submissions. We have also perused the material available on record. The main thrust of the arguments on behalf of the assessee is that s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. This amendment is not applicable to an assessment year prior to 1993-94 and is applicable only to assessment year 1993-94 and subsequent years. As pointed out earlier, this amendment has been made as a consequence of doing away with the assessment of share income of partners and instead taxing the same in the hands of the firm itself. If the argument of the learned counsel for the assessee is to be accepted it would lead to the conclusion that the Assessing Officer will have no jurisdiction in taxing the partners of a firm after 1-4-1993 for any of the earlier years. This, no doubt, is not the intention of the legislature. As pointed out earlier, the amendment to section 143(1)(c) made effective from 1-4-1993 is relatable only to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. We have considered the rival submissions very carefully. We have also gone through the judgment of the Supreme Court in the case of Modi Industries Ltd. No doubt, the above decision related to interest under section 214. As per the Supreme Court: 'The period, therefore, for which the interest has to be paid remains the same, ie., the first day of the relevant assessment year to the date of the regular assessment (first assessment)'. The above judgment related to payment of interest to the assessee under section 214. But, in our opinion, regarding the date upto which interest is payable to the assessee or is chargeable from the assessee, there should be no different yardsticks. The period should be from the first day of the relevant asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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