1998 (7) TMI 61

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.... under section 139(8) in an assessment under section 143(3) read with section 147(a) is valid in law ?" Section 139(8)(a) of the Income-tax Act, 1961, provides that where the return under sub-section (1) or sub-section (2) or sub-section (4) for an assessment year is furnished after the specified date, or is not furnished, then the assessee shall be liable to pay simple interest reckoned from the day immediately following the specified date to the date of the furnishing of the return, or, where no return has been furnished, the date of completion of the assessment under section 144, on the amount of the tax payable on the total income as determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted a....

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....). Explanation 2 was inserted by the Taxation Laws (Amendment) Act, 1984, with effect from April 1, 1985. The submission of learned counsel for the assessee, therefore, is that Explanation 2 will operate prospectively and, therefore, the same will not apply for the assessment year 1984-85. In Lally Jacob's case [1992] 197 ITR 439 (Ker), the Full Bench considered the question whether sub-section (6) added to section 215 by the Taxation Laws (Amendment) Act, 1984, with effect from April 1, 1985, which was couched almost in the same words in which section 139(8) is couched, is clarificatory in nature. Similar contention was raised before the Full Bench that sub-section (6) to section 215 inserted with effect from April 1, 1985, was operative p....

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....ent under section 147." In G. B. Transports' case [1985] 155 ITR 548 (Ker), the Full Bench decision referred to the fact situation where more than one assessment existed at a stage and, therefore, the Full Bench held that regular assessment is used in contradistinction to another assessment either that is in the nature of self-assessment or a provisional assessment or a full-fledged assessment made under sections 143 and 144 of the Act. In Modi Industries Ltd.'s case [1995] 216 ITR 759, the Supreme Court considered the question whether an order passed giving effect to the orders of higher authorities either in appeal or otherwise, will amount to regular assessment and in that context the Supreme Court stated that the assessment made unde....