COMMISSIONER OF INCOME TAX Vs. BABURAJ K P

JUDGEMENT

(1.) These two Income Tax References under S.256(1) of the Income Tax Act, 1961 (for short 'the Act') are coming up for decision at the instance of the Revenue. The questions of law referred to us for decision are as follows :

(2.) The facts leading to this references are shortly summarised thus : The assessee did not file the return of income under S.139(1) of the Act within the statutory period for the assessment year 1982-83 and 1983-84. In view of this default the assessing officer initiated proceedings under S.143 (3) read with S.147(a). The officer further levied interest under S.139(8) and 217 for the aforesaid years. As against these orders, appeals were filed and the Dy. CIT (Appeals) held that no interest can be changed under S.139 (8) and 217 and directed the assessing authority to delete the interest charged under S.139(8) and 217. On second appeal the Tribunal upheld the findings of the Dy. CIT (Appeals). It held that even the first assessment made under S.147 of the Act cannot be construed as a 'regular assessment' and that prior to 1-4-1985 the expression 'regular assessment' could not take within its sweep an assessment made for the first time even though under S.147. The Revenue being aggrieved by the findings of the Tribunal filed the reference applications. That is how these references are coming before us for answer.

(3.) The Tribunal relied on the following decisions in support of its conclusions.