Reassessment cannot be used to levy interest once an original regular assessment is already completed.

Interest under section 139(8) of the Income-tax Act could not be levied in reassessment proceedings under sections 147 and 148 where an original assessment under section 143 had already been completed and no such interest was levied then. The term "regular assessment" was applied in its settled sense as the original assessment under section 143 or 144, and the deeming treatment of reassessment as a regular assessment operated only where no regular assessment had previously been made. On the facts, the reassessment did not attract the deeming provision relied on by the Revenue, so the attempted levy failed.

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Issues: Whether interest under section 139(8) of the Income-tax Act, 1961 could be levied through reassessment under sections 147 and 148 where the original assessment had already been made under section 143 and no interest had been levied at that stage.

Analysis: The expression "regular assessment" was treated as having the settled meaning given by the Supreme Court, namely the original assessment made under section 143 or 144. The deeming treatment of reassessment as a regular assessment was held to operate only where no regular assessment had been made in the first instance. On the facts, the original assessment had already been completed and the later levy was sought only in reassessment proceedings. The case therefore did not fall within the deeming provision relied on by the Revenue.

Conclusion: Interest under section 139(8) could not be levied in the reassessment proceedings on the facts of the case, and the Revenue's appeal was without merit.

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