1984 (7) TMI 165

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....on under s. 154 of the IT Act. 2. The relevant facts are that the original assessment for the asst. yr. 1979-80 was completed on 9th Sept., 1981 by clubbing the income of the two periods as in the opinion of the ITO there was only a change in the constitution of the firm. The assessee went in appeal and the AAC directed that in view of the decision of the Hon'ble Madhya Pradesh High Court in th....

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....982 giving effect tot he order of the AAC was not an order under s. 143 (3) or 144, no interest could be levied on the assessee under s. 217 of the Act. It was pointed out that since the said mistake was apparent from the record, the same should be rectified and interest of Rs. 1,682 wrongly charged should be deleted. The ITO did not accept the assessee's contention and rejected the application mo....

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....nsel for the assessee submitted that on separate assessment, as contemplated under s. 143(3) or 144 of the Act was made in respect of the second period, but it was only an order under s. 250/254 of the Act giving effect to the findings of the AAC and, hence, the levy of interest under s. 217 was bad in law. He submitted that interest under s. 217 is leviable only in the course of a regular assessm....

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....subject is absolutely clear that interest under s. 217 could be charged only at the time of making a regular assessment and not in the course of any other proceedings. Regular assessment has been defined under s. 2(40) of the Act as an assessment made under s. 143(3) or under s. 144 of the Act. In the present case, the ITO did not charge any interest under s. 217 at the time of making the regular ....