Income-Tax Officer vs Hakim Singh Grover. on 23 March, 1990
In ITO v. Kishanlal Gadodia [1988] 24 ITD 121 Jaipur Bench of the Tribunal (Third Member decision) has held that the said interest cannot be charged in re-assessments. Since the issues relates to assts. year 1973-74, the amendment incorporated in the relevant provision of the Act are not applicable to this year. Interest u/s. 139(8) and u/s. 217 could be charged in regular assessment proceedings. Since re-assessment is not regular assessment. interest u/s. 139(8) and u/s. 217 is not charageable. The levy of interest by the Assessing Officer in re-assessment proceedings under the aforementioned section is accordingly deleted. However, if any interest u/s. 139(8) or u/s. 217 was charged in the original assessment that shall stand.