Regular assessment for advance-tax interest means the first assessment order, not a later appellate revision.

Section 214 of the Income-tax Act, 1961 was construed to mean that interest on refundable excess advance tax is computed with reference to the first order of regular assessment made by the assessing authority. A later assessment order passed to give effect to appellate or revisional proceedings does not replace that original regular assessment for this purpose. The provision was read as fixing interest entitlement by reference to the initial assessment order, not the last operative order after appeal. The result is that interest under section 214 is confined to the excess advance tax refundable on the first regular assessment only.

---

---

Issues: Whether interest under section 214 of the Income-tax Act, 1961, is payable on excess advance tax only with reference to the first order of regular assessment or also on a subsequent revision made pursuant to appellate proceedings.

Analysis: The expression "regular assessment" in section 214(1) was held to refer to the first order of regular assessment made by the Income-tax Officer. The later order passed in consequence of appellate or revisional proceedings does not replace that first assessment for the purpose of computing interest on refundable excess advance tax. The scheme of the provision was treated as fixing the liability with reference to the original regular assessment and not the last operative assessment order after appeal.

Conclusion: Interest under section 214 is allowable only on the excess amount of advance tax determined refundable on the first order of regular assessment and not on any subsequent revision of the assessment on the basis of an appellate order.

Final Conclusion: The reference was answered against the assessee and in favour of the Revenue, limiting interest entitlement under section 214 to the first regular assessment order.

Ratio Decidendi: For the purpose of section 214(1) of the Income-tax Act, 1961, "regular assessment" means the first assessment order made by the assessing authority and not a later appellate or revisional order giving effect to modifications in assessment.

---