TMI Blog2002 (10) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... or the assessment year 1988-89, in both the cases, the Assessing Officer completed assessments under section 143(1) on 14-10-1988. While framing the original assessments under section 143(1), the Assessing Officer has not charged interest under section 215/217 of the Income-tax Act. Subsequently, the cases were re-opened by issue of notices under section 147 and while making the reassessments, the Assessing Officer charged the interest under section 215/217 of the Income-tax Act amounting to Rs. 60,023 in the case of Sh. Kewal Singla and Rs. 68,607 in the case of Sh. Sukhdev Raj. 4. The assessees preferred the appeals before learned CIT(A) and the learned CIT(A) vide his impugned orders deleted the interest charged by the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on which interest was payable under sub-section (1) has been increased or reduced, as the case may be, the interest shall be increased or reduced accordingly. From this it is clear that if interest had been charged during the course of regular assessment under section 143(1), the same could have been increased and interest cannot be charged during the course of reassessment proceedings under section 147. This is also clear from sub-section (6) of section 215 which states that where, in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of sections 215, 216 and 217 as also section 273. In the present case, reassessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the completion of original assessment under section 143(1) and this being the factual position, the same cannot be considered as regular assessment for the purpose of levy of interest under section 217. Therefore, the Assessing Officer is directed to delete the same." The Hon ble Supreme Court in the case of Modi Industries Ltd. v. CIT [1995] 216 ITR 759 discussed the definition of regular assessment, wherein Their Lordship observed that : "Assessment has been given an inclusive meaning in sub-section (8) of section 2. It includes reassessment. Regular assessment has been defined in section 2(40) to mean the assessment made under section 143 or 144. In the context of sections 140A, 141 and 141A regular assessment could only mean ..... X X X X Extracts X X X X X X X X Extracts X X X X
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