TaxTMI 
TaxTMI 
1981 (9) TMI 165
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....ceased assessee for the years under consideration had not filed any returns of income. It appeared that there was a raid by the Department conducted on 17th July, 1976 when some books of account in respect of the business carried on under the name and style of M/s. Shankar Textiles of 203/1, Mahatma Gandhi Road, Calcutta were recovered and seized from the residence of the deceased assessee. Thereupon, the ITO initiated proceedings under s. 147 (a) r/w s. 148 for making the assts. of the deceased assessee for the years under consideration. After usual proceedings the reassessments were made under s. 143(3)/147(a) against the deceased assessee for the years under consideration determining his total income at Rs. 2,36,716 (Asst. yr. 1961-62), ....
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....(P&H). These contentions prevailed with the CIT (A), who has cancelled the penalty orders by observing as under: "The definition of regular assessment as per Sec. 2(40) of the Act meant the assessment made under s. 143 or Sec. 144. Now referring to the provisions of Sec. 273 as was applicable to the year under appeal, it was clear there from that if the ITO in the course of any proceeding in which regular assessment was satisfied that the assessee had without reasonable cause failed to furnish an estimate of advance tax payable by him in accordance with the provisions of sub-sec. (3) of Sec. 212, he might direct such person to pay penalty. So the definition referred to above did not cover an assessment under s. 147(a). Hence the penal....
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....i, the context in which the said expression 'regular assessment' is used in s. 2(40) of the Act does not contemplate the meaning to be given to that expression other than given in s. 2(40) of the Act. The assessment in the present case is one under s. 143(3) r/w s. 147(a) of the Act and so the assessments so made of the deceased assessee for the years under consideration were not regular assessments for the purpose of s. 273(b) of the Act. Shri Sancheti further highlighted that the decision of the Bombay High Court has been considered by the Punjab & Haryana High Court in the case of Smt. Kamala Vati and dissented from. Shri Sancheti further urged that the two decisions relied upon by the Deptl. Rep., viz, in the case of P.A. Abdul Muthalif....
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....the Act. It may be added over here that s. 2(40) of the Act lays down that, unless the context otherwise requires, "regular assessment" means the assessment made u/d 143 or s. 144 of the Act. 7. No doubt, it is correct that the Bombay High Court in the case of Debi Prosad Kejriwal vs. CIT, has held that the expression 'regular assessment' in s. 80A(9) of the Act. It may be added over here that s. 2(40) of the Act lays down that unless the context otherwise requires, "regular assessment" means the assessment made under s. 143 or s. 144 of the Act. 7A. No doubt it is correct that the Bombay High Court in the case of Debi Prosad Kejriwal vs. CIT, has held that the expression 'regular assessment' in s 80A, has held that the expression 're....