TMI Blog1995 (12) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... 139(8) was charged. No interest under section 217 was also charged. Thereafter, notice under section 148 was issued and served on 2-12-1988. The assessee did not submit any return in compliance of notice under section 148. He, however, furnished the copy of the assessment order and acknowledgement receipt. The search operation was carried out in this case on 4-8-1988. The re-assessment has been made under section 144 pursuant to aforesaid notice issued under section 148. At the time of making such re-assessment the Assessing Officer directed that interest should be charged under sections 139(8) and 215/216 and also initiated penalty proceedings under different sections. 3. Before the CIT(A), it was argued on behalf of the assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment. The learned CIT(A), after considering the arguments made on behalf of the appellant held that the assessee's contention is perfectly tenable being in conformity with the legal provisions and therefore, he is not at all liable to levy of interest under sections 139(8) and 217. He, therefore, deleted the levy of interest charged under sections 139(8) and 217. 4. The learned departmental representative argued that since there was no delay in filing of the original return, question of charging interest under section 139(8) did not arise at the time when the original assessment was made under section 143(1). It does not mean that no interest can be validly charged when the assessment is being made for the first time under section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt so made shall be regarded as a regular assessment for the purposes of this section and sections 216, 217 and 273. 139(8). Explanation 2 -- Where, in relation to an assessment year is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this sub-section." 6. 1. It will also be relevant to reproduce the provisions of section 148(1) : " (1) Before making the assessment, reassessment or recomputation under section 147, the Assessing Officer shall serve on the assessee a notice requiring him to furnish within such period, not being less than thirty days, as may be specified in the notice, a return of his income or the income of any other person in respect of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment. The re-assessment made in relation to an assessment year where originally a regular assessment whether under section 143(1) or 143(3) or 144 had already been made, cannot be treated an assessment in relation to that assessment year which is made for the first time under section 147. On the basis of a plain reading of the aforesaid clear provisions contained in section 215(6) and Explanation 2 to section 139(8), it is abundantly clear that no interest can be charged for the first time in case of a re-assessment made under section 147. What cannot be done directly under the specific provision inserted in section 215(6) and Explanation 2 to section 139(8) providing for levy of interest in case of assessment made for the first time unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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