1995 (12) TMI 62

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....ee, the Income-tax Appellate Tribunal has referred the undernoted question of law for our opinion arising out of the order dated December 4, 1986, passed in I. T. A. No. 311/(Ind) of 1986 for the assessment year 1975-76 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that interest under section 139(8) of the Income-tax Act, 1961, was right....

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....the Act. The Income-tax Officer, vide order dated May 1, 1985, rejected the prayer. The appeal filed by the assessee was also dismissed. On further appeal, the order was maintained by the single member of the Tribunal. The Tribunal rejected the appeal. Aggrieved, the applicant filed the application under section 256(1) of the Act. On that application, the Tribunal referred the aforesaid question o....

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....re a return is filed beyond the prescribed period then, it is no return in the eye of law and it should then be held as if no return is filed. It is not disputed before us that an assessment made after issuance of notice under section 148 of the Act is not a regular assessment. In Charles D'Souza v. CIT [1984] 147 ITR 694 (Kar), the High Court of Karnataka held that no interest under section 139(....

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....n 'regular assessment' to include other orders. Where an assessment is made under section 143(3) read with section 147, interest cannot be charged under sections 139(8) and 217." The authorities were not justified in holding that it was a case of regularising the return. Two factors stare in the face-- (a) The return was filed beyond the prescribed period and, as such, it was to be held that the....