TaxTMI 
TaxTMI 
1990 (7) TMI 49
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.... directions were given under section 215 for charging of interest. The Commissioner of Income-tax exercised the powers conferred on him under section 263 and passed an order dated March 28, 1980 as under : "in view of the facts and circumstances of the case which have been discussed above, I consider that the assessment order for the assessment year 1977-78 passed by the Income-tax Officer on March 31, 1978, is erroneous and prejudicial to the interests of the Revenue. In order to meet the ends of justice and in the circumstances of the case, I hereby set aside the assessment for the assessment year 1977-78 with the direction that only the items discussed in this order shall be examined and assessment in respect of the same above will be made de novo. The Inspecting Assistant Commissioner (Assessment) is directed to pass a fresh order in accordance with the provisions of law subject to the above restriction after providing the assessee-company with a proper opportunity of being heard." In pursuance of the order passed by the Commissioner of Income-tax, the Income-tax Officer passed a fresh assessment order in terms of the directions given by the Commissioner of Income-tax. The ....
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....and not in the year 1977-78. The Tribunal upheld the order passed by the learned Commissioner. Reference under section 256(1) of the Income-tax Act was submitted by the-Commissioner of Income-tax, Jaipur, before the Tribunal with the request that questions of law arise out of the order of the Tribunal and the questions referred to in para 4 of the application should be referred to the High Court for decision. The petition was rejected by the Tribunal, and as such, this application under section 256C2) was submitted before this court for directing the Tribunal to refer the questions referred to above for the decision of this court. Mr. Singhal, appearing on behalf of the Revenue, with all vehemence at his command, submitted that the doctrine of merger should be applied in this case and that no application lies before the Inspecting Assistant Commissioner under section 154 of the Act. He submitted that the appeal was preferred against the order of the Inspecting Assistant Commissioner and the same has been dismissed, as such, the doctrine of merger should be applied and, if any application lies, it lies to the final authority, namely, the Commissioner who has rejected the appeal. W....
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....lso includes cases where the assessee fails to comply with all the terms of a notice issued under sub-section (2) of section 143. The words "regular assessment" as used in sections 143 and 144 cannot be given a wider interpretation like the word "assessment" and "reassessment" as used in section 2, clause. (8), of the Income-tax Act. Assessment includes all types of assessments including reassessment and fresh assessments except the assessments specifically provided under clause (40) of section 2 of the Income-tax Act. Mr. Singhal has cited before us and submitted that the word "reassessment" has also been considered by some High Courts as a regular assessment. Before us, the controversy is limited only to whether the fresh assessment made under section 263 under the directions of the Commissioner can be said to be a regular assessment ? We are of the view that the fresh assessment does not fall within the purview of sections 143 and 144 read with clause (40) of section 2 of the Income-tax Act. Assessment made under section 263 has been termed "fresh assessment". This fresh assessment is limited only to the extent of directions given by the Commissioner under section 263. In the c....
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....only whereas a result of an order under section 154, the amount on which interest was payable under sub-section (1) has been increased or reduced, as the case may be. The words "has been increased or reduced" should be considered in the proper perspective. If there was a dispute or a direction about the interest under section 263 and, if the assessing authority finds that no interest is leviable, even then the zero can be increased to any amount which may be found just and proper. However, where there is no zero and there is no dispute about the interest and the interest has not been assessed at all, in such cases, the word "increased" cannot be interpreted to include imposition of interest. Mr. Singhal has cited before us the case of Associated Cement Co. Ltd. v. CTO [1981] 48 STC 466. In the majority judgment the Hon'ble Supreme Court interpreted the provisions of section 11A of the Rajasthan Sales Tax Act and held that the interest is automatic and it becomes leviable as soon as the tax is due. The case cited by the Revenue does not apply in the facts and circumstances of the present case, particularly when it is an assessment under section 263 and is not a regular assessment un....