1991 (9) TMI 115

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....ackdrop of the case is that an assessment under s. 143(1) was made in each case determining the total income at a particular figure. While making that assessment under s. 143(1), the share of income of the assessee from different concerns was taken provisionally. On completion of assessment of the firm, the Assessing Officer made orders under s. 154 to which the assessees did not object as the determined shares of the assessees in the firm were to be taken. However, neither in the orders made under s. 143(1) nor in the orders made under s. 154 there was any specific direction for charging interest under s. 215. It is also uncontroverted and record it as a finding of fact that in the assessment made under s. 143(1) in each case, no interest ....

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....f CIT vs. Executor of the Estate of Late H.H. Rajkuverba Dowager Maharani Sahab of Gondal vs. CIT (1978) CTR (Kar) 347 : (1978) 115 ITR 301 (Kar), the Karnataka High Court has held that, "regular assessment" as defined in s. 2(40) of the Act means the assessment made under s. 143 or s. 144. It does not, therefore, include an order made under s. 215 or s. 216 or s. 217. Sec. 217(1) r/w s. 215(1) lays down that the computation of interest payable under s. 217 is possible only after the tax due on the basis of regular assessment is determined and the amount of tax deductible in accordance with ss. 192 to 195 is adjusted. Moreover, if an order passed under s. 215 or s. 216 or s. 217 formed part of an order of assessment, it would have become ap....