COMMISSIONER OF INCOME TAX Vs. S ANTONY

JUDGEMENT

(1.) THE question referred to us at the instance of the Revenue is as to whether on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in holding that the interest under Sections 139(8) and 217 was not leviable in respect of an assessment made under Section 147. THE assessment year is 1976-77.

(2.) THE assessee is an individual carrying on real estate business. As he did not file any return for the assessment year 1976-77, the Income-tax Officer issued a notice to him under Section 148, in response to which a return was filed admitting an income of Rs. 28,410. THE assessment was completed under Section 143(3) read with Section 147(a) of the Income-tax Act and in the assessment order interest was also charged under Sections 139(8) and 217 for delay in filing the return and also for non-payment of advance tax in accordance with law.

(3.) THE levy of interest on such assessment made for the first time under Section 147 has been held by the High Courts of Delhi, Bombay and Kerala to be valid, as in the view taken by those High Courts also such an assessment is a regular assessment. THE decision of the Delhi High Court is to be found in the case of National Agrl Co-op. Marketing Federation of India Ltd. v. Union of India [1981] 130 ITR 928 and CIT v. Pratap Singh of Nabha . THE decision of the Bombay High Court is in the case of Deviprasad Kejriwal v. CIT [1976] 102 ITR 180 and that of the Full Bench of the Kerala High Court is in the case of Lally Jacob v. ITO [1992] 197 ITR 439.