9911796707
TMI Blog1992 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... s not eligible for deduction under section 80G. The Tribunal, however, negatived this contention and upheld the claim of the assessee. In respect of the assessment order of the Income-tax Officer dated February 5, 1972, the assessee had filed an appeal before the Appellate Assistant Commissioner. In the appellate order, the Appellate Assistant Commissioner considered various disallowances or additions made by the Income-tax Officer while making the regular assessment and passed orders thereon with which we are here not concerned. The Income-tax Officer had charged interest amounting to Rs. 38,928 under section 216 of the Income-tax Act, 1961, in his assessment order. The Appellate Assistant Commissioner, in view of the direction given by h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egular assessment' in section 216 meant the assessment that had become final, and in upholding the direction given by the Appellate Assistant Commissioner to the Incometax Officer to recalculate the interest under section 216 after taking into consideration the effect of the appellate order ?" As far as the first question is concerned, it is an accepted position that this question must be answered in the negative and in favour of the Revenue in view of the decision of the Supreme Court in the case of H.H. Sri Rama Verma v. CIT [1991] 187 ITR 308. The question is answered accordingly. The second question relates to the interpretation to be given to section 216 of the Income-tax Act, 1961, as it stood at the relevant time. Section 216, at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the first three instalments. Therefore, this has to be decided at the stage of making a regular assessment. The term "regular assessment" has been defined in section 2(40) of the Income-tax Act, 1961, as follows : "Section 2.(40) 'regular assessment' means the assessment made under section 143 or section 144." It is an accepted position that where, as a result of any direction given by the Appellate Assistant Commissioner or the Tribunal, the Income tax Officer is required to pass a fresh assessment order, this would also be a regular assessment under section 143. Therefore, ordinarily, the term regular assessment" would cover all regular assessments which can be made under section 143 in respect of a given assessment year. Looking to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment, interest shall be payable by the assessee for the period and in the manner prescribed in section 215. Under sub- section (3) of section 215 as it then stood, where, as a result of an order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 264, the amount on which interest was payable under this section has been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded. Since sub- section (3) expressly dealt with a subsequent fresh regular assessment which may, inter alia, be required to be made as a result of appellate orders, the Full Bench said that sub-section (1) of section 215, when it talked about "regular assessment", re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n can be drawn of the extent, if any, of underestimation of advance tax. Therefore, we do not see any reason why we should depart from the normal definition of the term "regular assessment" while interpreting section 216. In this connection, Mr. Dalvi, learned counsel for the assessee, also drew our attention to a subsequent decision of a Division Bench of this court in Kadre (S. A.) v. Binod Mills Co. Ltd. [1986] 157 ITR 177. The Division Bench in that case was required to consider the provisions of section 14A of the Excess Profits Tax Act, 1940. Under sub-section (7) if, when a regular assessment is made in due course under section 14, the amount of excess profits tax payable thereunder is found to be less than that determined as payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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