1990 (8) TMI 13

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....ar 1980-81. The question is whether interest under section 139(8) of the Income-tax Act, 1961, can be charged in respect of an assessment made under section 147 of the Income-tax Act, 1961. Shortly stated, the facts are that the assessee, a registered firm, filed its return under section 148 of the Act on January 29, 1982. The Income-tax Officer charged interest under section 139(8) of the Act ....

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....urt "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in confirming the finding of the Commissioner of Income-tax (Appeals) that interest under section 139(8) of the Income-tax Act, 1961, was not leviable where the assessment is made under section 147 of the said Act?" We have already noted that this case relates to the assessment year 1980-81.....

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.... the Income-tax Act, 1961. The Supreme Court in Central Provinces Manganese Ore Co. Ltd. v. CIT [1986] 160 ITR 961, has held that levy of interest is part of the process of assessment. Although sections 143 and 144 do not specifically provide for the levy of interest and the levy is, in fact, attributable to section, 139(8) or section 215, it is nevertheless a part of the process of assessing t....

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.... read with section 147, interest cannot be charged under section 139(8). A similar view has been taken by the Patna High Court in Prakash Lal Khandelwal v. ITO [1989] 180 ITR 604. There, the assessment years involved were 1980-81 to 1982-83. Assessments were completed pursuant to the returns filed in response to notices under section 148 for those years. Interest under section 139(8) and 217 wa....