TaxTMI 
TaxTMI 
2019 (10) TMI 1619
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....n record are; assessment order under section 254 r.w.s. 143(3) of the Act was passed for the impugned assessment year on 15/03/2016 determining total income of the assessee at Rs. 23,46,32,06,080/-. Thereafter, the assessee filed rectification application under section 154 of the Act on 24/04/2016. Simultaneously, show cause notice dated 01/07/2016 was issued by the Assessing Officer to the assessee under section 154 of the Act . The assessee in rectification petition sought deletion of interest charged under section 220(2) of the Act. The Assessing Officer in show cause notice issued under section 154 sought levy of interest under section 234A, 234B and 234C of the Act and also interest provisions of section 234C of the Act. The Asses....
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.... order was passed." c. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in holding that interest u/s 220(2) is to be computed from the date of fresh assessment order without appreciating the fact that the issues of addition made in original assessment order and fresh assessment order are same, as, assessee was in default from the date of original assessment order and no new material evidence has been furnished by assessee in fresh assessment proceedings so as to challenge its default." d. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) erred in holding that for interest u/s 220(2) the date of fresh assessment order is to be considered, however, for interest....
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....d, Dr. P. Daniel, Special Counsel for the Revenue vehemently defended the assessment order and prayed for reversing the finding of CIT(A). 6. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. We observe that the Co-ordinate Bench in ITA No. 5702/Mum/2017 in assessment year 1992-93 and Cross Appeal by the revenue in ITA No. 6028/Mum/2017 vide order dated 14/01/2019 have considered the issue of charging of interest under section 234A, 234B & 234C and also the meaning of expression 'regular assessment'. The Tribunal in the light of decision rendered by Hon'ble Apex Court in the case of Modi Industries Ltd. (supra) and the decision of Hon'ble Gujarat High Court in....
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....ollowing such financial year to the date of determination of total income u/s 143(1) or regular assessment under section 143(3) or section 144 of the Act. Regular assessment has been defined u/s 2(40). According to this section, regular assessment means the assessment made u/s 143(3) or section 144 of the Act. In the case of the assessee, we noted that the first assessment was made u/s 144 on 27.3.1995 and therefore that was the regular assessment. The subsequent assessments have been framed in consequence of the order of the Tribunal passed u/s 254 and those cannot be regarded to be the regular assessments. Similar view, we noted has been taken by the Hon'ble Supreme Court in the case of Modi Industries Ltd. vs. CIT [1995] 128 CTR 361 (SC)....
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.... levy of interest being a charging provision cannot be computed. Due to the incapability of computation of the interest u/s 234C in such a situation, the provision to levy the interest will fail and will become ineffective in view of the decision of Hon'ble SC in the case of CIT vs B.C. Srinivasa Setty (1981) [1981] 128 ITR 294 (SC). In this case it was held that the charging section and the computation provisions together constitute an integrated code. When there is a case to which the computation provisions cannot apply at all, it is evident that such a case was not intended to fall within the charging section. In this case before us, there is a failure of computation of interest provision due to non-filing of valid return by the assessee....
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....(i) of the said circular. In view of this legal position, we do not find any illegality or infirmity in the order of the CIT (A) directing the AO to charge interest u/s 220(2) from the date of default of the fresh demand notice issued after the fresh assessment made in consequence of the order of the appellate authorities. Thus, the ground no 8 to 12 of the Revenue stands dismissed, while ground no 32 to 35 of the assessee are allowed to the extent stated above." Thus in view of the above findings of the Tribunal, the ground raised by the Revenue in the present appeal does not require any further adjudication. The issues have already been considered and decided by the Co-ordinate Bench in an appeal arising from the assessment order passe....