TaxTMI 
TaxTMI 
1982 (6) TMI 124
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....ut prejudice to the above, interest once charged can only be reduced as per section 215(3). Further, interest can be charged for default of advance tax, only at the time of regular assessment and not by an order passed under section 263. It is, therefore, prayed that interest of Rs. 1,925 charged under section 217(1A) now is illegal and wrong and the same be required to be deleted in full. 2. For the sake of convenience, the second ground is taken up at the first instance. The contention of the assessee is that the ITO could not have charged interest under section 217(1A) of the Income-tax Act, 1961 ('the Act'), at the time of passing the order giving effect to the directions contained in the order of the Commissioner under section 263 of ....
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....ording to the AAC, the appeal was not entertainable. The same was dismissed. The contention before us, as made by the learned counsel for the assessee, is that the ITO cannot charge interest while passing order giving effect to the directions rendered by the Commissioner, as that order of the ITO was not a regular assessment. It is submitted, therefore, that the appeal by the assessee should be allowed. Furthermore, it is submitted before us that only when interest was charged originally, in the course of regular assessment, the same may be provided under section 215(3) of the Act. But it is contended that once regular assessment was completed and interest was not charged originally, the same cannot be charged as it was done in the present ....