Karnataka High Court
K.L. Narayana vs Income-Tax Officer And Anr. on 23 January, 1989
Equivalent citations: [1992]197ITR692(KAR), [1992]197ITR692(KARN)
JUDGMENT H.G. Balakrishna, J.
1. By consent of both counsel, this writ petition was taken up for hearing and arguments were heard and disposed of.
2. The short point for consideration is whether the first respondent has jurisdiction to enhance the interest in reassessment proceedings and whether he has jurisdiction to levy such enhanced interest.
3. The question is answered by the decision cited by learned counsel for the petitioner in paragraph 5 of the writ petition in Charles D'Souza v. CIT . It was held thus (headnote) :
"There can be levy of interest only in cases of regular assessment as defined by Section 2(40) of the Income-tax Act, 1961. The expression 'regular assessment' as defined by Section 2(40) means assessment made under Section 143 or Section 144 in contradistinction to assessments under Section 140A, a provisional assessment before its abolition in 1971 and an assessment/reassessment under Section 147.
When the expression 'regular assessment' is defined to mean only assessments made under certain sections of the Act, it would be beyond the jurisdiction of any court to give it a wider and comprehensive meaning so as to include all assessments done under the Act, whether under Section 143/144 or completed after issue of notice under Section 148.
Assessments under Section 143/144 fall under a distinct category of assessments and the assessments made under Section 147 are not covered by the expression ' regular assessment' as defined in Section 2(40).
Therefore, interest under sections 139(8) and 217 cannot be levied in the case of an assessment or reassessment made under Section 147."
4. The ratio of the said decision is applicable to the facts of this case. I, therefore, pass the following order.
5. The writ petition is allowed and orders in annexures A, B and D are hereby quashed to the extent they purport to charge and recover interest under Sections 139(8) and 215 of the Act.