TaxTMI 
TaxTMI 
1972 (6) TMI 17
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....idly applied to such a case ?" 2. The assessee is a registered firm. It filed a return disclosing a total income of Rs. 34,480 for the assessment year 1966-67. The assessment was completed on November 18, 1966, and the total income was fixed at Rs. 37,250. The assessee had not filed an estimate of income as required by section 212(3) of the Income-tax Act, 1961 (shortly referred to hereafter as "the Act") and had not also paid advance tax. The Income-tax Officer, therefore, initiated penalty proceedings under section 273(b) of the Act before completing the assessment. 3. Subsequently, the Income-tax Officer took action under section 147 and there was reassessment, which was completed on September 11, 1967, and the total income was fix....
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.... by way of penalty a sum- . . (ii) which, in the case referred to in clause (b), shall not be less than ten per cent. but shall not exceed one and a half times the amount on which interest is payable under section 217." Section 147 (corresponding to section 34 of the Indian Income-tax Act, 1922) provides that: "If- (a) the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under section 139 for any assessment year to the Income-tax Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or (b) notwithstanding that....
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....8, which may include the requirements under sub-section (2) of section 139, is really not a notice under section 139, because section 148 itself states that the provisions of the Act will apply as if the notice issued was under sub-section (2) of section 139. So the assessment that follows cannot strictly be said to be an assessment under section 143 of the Act. Apart from this, sections 147, 148, 153, 271 and 246 specifically refer to assessment under section 147. Assessments made after resort to the provisions in section 147 appear under the scheme of the Act to be assessments under section 147 and therefore not assessments under section 143. If this be so, such assessments are not "regular assessments", because the definition of "regular....
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.... been a previous assessment and cases in which there had been no previous assessments. The decision in Gopalaswami Mudaliar v. Fifth Addl. Income-tax Officer, Coimbatore, related to a case where there had not been any previous assessment and it was held therein that interest can be charged under section 18A(6). In the later decision it was suggested that when there had been no previous assessment, the assessment made by resort to section 34 is a regular assessment and that, therefore, section 18A(6) will apply to such assessment but that section may not apply to a case where there had been previous assessment, before action was taken under section 34 of the Act. It is not for us to consider whether any such distinction can be drawn on the b....