TaxTMI 
TaxTMI 
2020 (10) TMI 428
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.... a bench of this Court vide order dated 28.10.2014 on the following substantial question of law: Whether on the facts and in the circumstances of the case in the impugned order of assessment consequent upon set aside by the order of the High Court interest u/s 234 A, B & C can be levied as if such an order is a regular assessment which alone attracts such levy of interest. 2. Facts leading to filing of the appeal briefly stated are that assessee on 13.09.1994 filed its return of income as a registered firm for the Assessment Year 1992-93. The Assessing Officer, by an order dated 30.03.1995, inter alia held that the assessee is not carrying on any business activity and treated it as an Association of Persons and completed the ass....
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.... assessee to produce necessary documents to prove its case and thereafter the Assessing Officer shall pass appropriate order. 4. Thereafter, the Assessing Officer by an order dated 25.11.2010, maintained its earlier order which was set aside by a Bench of this Court. The assessee preferred an appeal. The Commissioner of Income Tax (Appeals), by an order dated 31.07.2012, determined the status of the assessee from Association of Persons to a firm, but upheld the levy of interest. The Tribunal, by an order dated 07.02.2014, inter alia held that original order of assessment which has been effaced, is restored with all its characteristics of a regular assessment for the purpose of levy of interest under Section 234A, B and C of the Act. In t....
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....nsel for the revenue has submitted that even though in a proceeding for remand, the original order of assessment gets effaced, and a fresh order of assessment is passed, the same is passed under Section 143(3) of the Act and in view of the decision of the Supreme Court in MODI INDUSTRIES, supra, the expression 'regular assessment' has to be deemed to have been completed on the date when first order of assessment has been passed and not when the modified order of assessment has been passed. It is further submitted that the Tribunal has rightly held that interest is chargeable upto the date of first assessment order passed by the Assessing Officer and the view taken by the Tribunal is just and proper and relief has rightly been granted to the....
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.... under Section 34A(1) of the Act is levied under the circumstances mentioned therein namely where the return of income has not been furnished under sub- Sections (1) and (4) of Section 139 or in response to the notice under sub-Section (1) of Section 142 and / or is not furnished after due date. In the aforesaid circumstances, the assessee is liable to pay simple interest at the prescribed rate for every month. It is also not in dispute that if an order of assessment get effaced, it ceases to exist and a fresh order of assessment has to be passed. The Supreme Court in the case of MODI INDUSTRIES, supra, has held that the expression 'regular assessment' has to be deemed to have been completed on the date when first order of assessment has be....