TMI Blog1975 (9) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... r under section 263 of the Act to levy interest under section 139(1)(iii) ? " The assessment relates to the year 1964-65. The assessee, which is firm, filed a return of its income for the assessment year in question on April 1, 1966, showing a total income of Rs. 97,469. Subsequently, on February 5, 1968, it filed a revised return declaring a total income of Rs. 1,61,375, which included business income of Rs. 81,757. The return of income had to be filed by December 31, 1964, under section 139(1) of the Act. However, since a notice under section 13(2) had been served, it was due on August 28, 1964. An application in Form No. 6 dated December 31, 1964, was filed before the Income-tax Officer on January 2, 1965, praying for time till March 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Additional Commissioner had no jurisdiction to revise the order of assessment under section 263 of the Act. The Additional Commissioner overruled the objections and directed the Income-tax Officer to revise his order. Against the said order, the assessee preferred an appeal before the Tribunal. The Tribunal upheld the contention of the assessee that inasmuch as the order of assessment passed by the Income-tax Officer was merged in the order of the Appellate Assistant Commissioner, the Additional Commissioner was precluded from taking proceedings under section 263 of the Act. Section 139(1) of the Act prescribes the time within which a person, if his total income is assessable under the Act, shall furnish a return of his income. It also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso to subsection (1) of section 139 is not to be made by a separate order; it forms part of the assessment order. Interest, if any levied, forms part of the amount for which a notice of demand has to be issued under section 156. If the tax assessed is reduced by the Appellate Assistant. Commissioner, then it naturally follows that as a consequence, the interest levied by the assessing authority has also to be reduced. In the instant case, as stated earlier, the Appellate Assistant Commissioner reduced the assessable income by Rs. 12,000. If any interest had to be levied, then the same could be only on the amount of tax as determined by the Appellate Assistant Commissioner. The order of assessment that has become final is the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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