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TMI Blog1984 (3) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee amounting to Rs. 3,93,372. He also charged interest under section 215 amounting to Rs. 5,24,874. 3. The company appealed against this order and the Commissioner (Appeals) allowed the claim for depreciation. The ITO passed an order giving effect to the Commissioner (Appeals)'s order and the interest payable under section 215 was reduced to Rs. 2,09,298. 4. The department filed an appeal to the Tribunal against the Commissioner (Appeals)'s order allowing depreciation on scientific assets. The Tribunal set aside the Commissioner (Appeals)'s order for redeciding the issue. Before the Commissioner (Appeals) could redecide the issue, the ITO passed another order on 29-8-1981 to give effect to the appellate order and recompute the inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence No. 156 (Bom.) of 1976, dated 21-10-1983]. The departmental representative, on the other hand, for the reasons given by the Commissioner (Appeals), submitted that it is open for the ITO to levy the interest. 8. It would be seen that the interest levied related to that portion of the income assessable which represented the depreciation claimed by the assessee on assets used in scientific research which was disallowed in the order passed on 29-8-1981. Although the ITO had not waited for the Commissioner (Appeals) to pass a fresh order as directed by the Tribunal, Shri Trivedi, the learned counsel for the assessee, has not raised any serious objection to it. We should, therefore, proceed on the footing that the income computed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on which the interest is payable is 'upon the amount by which advance tax so paid falls short of the assessed tax'. The advance tax paid is known. It was nil on the facts of this case. So, the interest is to be paid on 75 per cent of the assessed tax. 11. The expression 'assessed tax' is also defined in section 215(5). It means that the tax levied on the basis of the regular assessment less the credit given for tax deducted at source and advance income-tax. So, now we have to see what is the assessed tax as per regular assessment. The first assessment dated 25-9-1978 resulted in an assessed tax on which the interest levied was Rs. 5,24,874. 12. Now, the assessee had gone on appeal and as a consequence the total income was reduced. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate and revisionary orders. Orders under sections 154 and 155 of the Act are passed by the ITO himself. The order under section 264 of the Act is passed by the Commissioner. The order under section 250 is passed by the AAC or the Commissioner (Appeals), as the case may be. Orders under section 254 of the Act and consequent orders on reference to by the High Court under section 260 of the Act and Supreme Court under section 262 of the Act are also passed by the Tribunal. In these orders, the orders passed by the Tribunal alone refer to the orders modifying earlier orders mentioned in the section. When the Tribunal passes an order under section 254 or in conformity to sections 260 and 262 orders, it modifies an order already passed un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) but the Tribunal cannot have any jurisdiction over it. That cannot be since it is well settled that the powers and jurisdiction of the AAC and the Tribunal are co-extensive except for the power of enhancement---The Bombay High Court decision in the case of Ugar Sugar Works Ltd. v. CIT [1983] 141 ITR 326. 15. Thus, we come to a finding that expression 'reduced' found in section 215(3) refers to the reduction as per the Tribunal's order modifying the order passed under section 250 by the first appellate authority in case where there is a second appeal. 16. Now, we must see if there is anything contrary to this finding in the Bombay High Court's decision in Carona Sahu. Co. Ltd.'s case the main issue considered there is the mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regular assessment and not the last operative order of regular assessment at any given point of time passed in appellate or revisional proceedings. Having regard to the interpretation of section 215 and the similar objectives of sections 214 and 215, a strong case is made out for reading 'regular assessment' in section 214 as the first order of regular assessment and not as the last operative order of regular assessment." 17. It would be seen that there is nothing in the decision which contradicts what we have found. The contention of the assessee before the High Court is that the regular assessment would cover every order passed by the ITO to give effect to an appellate/revisionary order. That contention has been rejected. Now, the rati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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