Interest under section 139(8) cannot be levied in reassessment proceedings under section 147/148.

Interest under section 139(8) of the Income-tax Act was treated as not leviable in reassessment proceedings initiated under section 147/148, even where the Department sought to use section 154 to add such interest after the reassessment order. The High Court followed its existing line of authority and held that the provision for interest did not apply to reassessment in this context. The question was answered in favour of the assessee and against the Department.

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Issues: Whether interest under section 139(8) of the Income-tax Act, 1961 could be levied in reassessment proceedings under section 148.

Analysis: The reference concerned an assessment reopened under section 148, where no interest had been charged in the reassessment order and the Department sought to invoke section 154 to impose interest under section 139(8). The issue was governed by prior High Court decisions holding that interest under section 139(8) is not leviable in reassessment proceedings under section 147/148, and the Court followed that consistent view.

Conclusion: The question was answered in the affirmative in favour of the assessee and against the Department.

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