1992 (7) TMI 63

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....e-tax Act, 1961, for the reason that the Income-tax Officer was not competent to charge any interest under section 217 when the assessment order was made on December 31, 1975, under section 147(a) ?" The brief facts of the case are that the assessee-Hindu undivided family was originally assessed by way of regular assessment on October 3, 1968, on a total income of Rs. 11,051. Thereafter, a settlement petition was moved to the Commissioner of Income-tax (Appeals) on September 26, 1974, which was decided on March 24, 1975, and, pursuant to this settlement, the additional income of Rs. 91,000 was brought to tax for the year under appeal for which a voluntary return was submitted by the assessee on June 28, 1984. The assessment on the said r....

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....215 is procedural in nature and, if the assessment is made for the first time under section 147, it shall be regarded as regular assessment for the purposes of sections 216, 217 and 273 of the Act. It has further been submitted that the charging of interest is automatic. We have considered the matter. The definition in section 2(40) restricts the meaning of fresh assessment to the assessment made under section 143 or 144. Though the definition clause cannot override the specific language of the section, if it otherwise contemplates. The amendment which has been brought in section 215 by insertion of sub-section (6) cannot be considered to be procedural in nature as it affects the liability and create & a fresh liability of interest and, ....