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2011 (7) TMI 2 - ALLAHABAD HIGH COURTSurvey – Undisclosed income – Penalty - Rectification of mistakes - Question of law - Whether the assessment order, passed on 29-2-1986 for the assessment year (AY) 1987-88 under section 143(1)(a) of the Income-tax Act, 1961 (the Act), is a regular assessment within the meaning of section 215 read with section 217 of the Act or not - In case the conditions mentioned in sections 215 and 217 are satisfied, then an assessee is liable to pay the interest at the rate mentioned therein from 1st day of April next following the financial year up to the date of the regular assessment - This indicates that the assessment under section 143(1) was included in the ambit of the words ‘regular assessment’ in the relevant year - If no assessment order is passed, as is the case after 1-4-1989, then sending intimation can never be a regular assessment Provided that, in a case where an assessment has been made under sub-section (1), the notice under this sub-section except where such notice is in pursuance of an application by the assessee under clause (a) shall not be issued by the Income-tax Officer unless the previous approval of the Inspecting Assistant Commissioner has been obtained to the issue of such notice if any tax or interest is found due on the basis of such return, after adjustment of any tax deducted at source, any advance tax paid and any amount paid otherwise by way of tax or interest, then, without prejudice to the provisions of sub-section (2), an intimation shall be sent to the assessee specifying the sum so payable, and such intimation shall be deemed to be a notice of demand issued under section 156 and all the provisions of this Act shall apply accordingly - The assessment made under the summary assessment scheme in the aforesaid manner is final except where the proceedings are initiated for making a fresh assessment It has been clarified by the issue of an Income-tax (Removal of Difficulties) Order, 1989, vide No. GSR 376(E), dated 23-3-1989 (refer to paras 11.2 and 11.3 of Part I of these Explanatory Notes), that the provisions of section 143, as they stood prior to the commencement of the Amending Act, 1987, shall apply in respect of the assessment year 1988-89 and earlier assessment years - It follows, therefore, that the provisions of the new section 143, as substituted by the Amending Act, 1987, would apply to the assessment year 1989-90 and subsequent assessment years
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