TMI Blog1984 (7) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... essment for the asst. yr. 1979-80 was completed on 9th Sept., 1981 by clubbing the income of the two periods as in the opinion of the ITO there was only a change in the constitution of the firm. The assessee went in appeal and the AAC directed that in view of the decision of the Hon'ble Madhya Pradesh High Court in the case of M/s Ganesh Dal Mills, there was a dissolution of the firm and, hence, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no interest could be levied on the assessee under s. 217 of the Act. It was pointed out that since the said mistake was apparent from the record, the same should be rectified and interest of Rs. 1,682 wrongly charged should be deleted. The ITO did not accept the assessee's contention and rejected the application moved under s. 154 of the Act. 4. The assessee went in appeal and reiterated the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) or 144 of the Act was made in respect of the second period, but it was only an order under s. 250/254 of the Act giving effect to the findings of the AAC and, hence, the levy of interest under s. 217 was bad in law. He submitted that interest under s. 217 is leviable only in the course of a regular assessment which has been defined under s. 2(40) of the Act as an assessment made under s. 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of making a regular assessment and not in the course of any other proceedings. Regular assessment has been defined under s. 2(40) of the Act as an assessment made under s. 143(3) or under s. 144 of the Act. In the present case, the ITO did not charge any interest under s. 217 at the time of making the regular assessment. However, he resorted to levy of such interest only while giving effect to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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