COMMISSIONER OF INCOME TAX Vs. INDERJEET BEDI

JUDGEMENT

(1.) THE Revenue has filed this petition under S. 256(2) of the IT Act, 1961 (for short the 'Act') seeking a direction to the Income -tax Appellate Tribunal (for short the 'Tribunal') to refer the following question of law for the opinion of this Court:

(2.) THE case pertains to the asst. year 1985 -86. The assessee had filed its return of income on 12th Feb., 1986. The assessment was completed under S. 143(1) of the Act on 27th Feb., 1986. Thereafter the proceedings under S. 147 of the Act were initiated and in response to the notice under S. 148, return was filed on 21st Dec., 1988, and the reassessment was completed on 30th Nov., 1990. In the reassessment interest under ss. 139(8) and 217 of the Act was levied. The assessee filed an appeal before the CIT(A) which was allowed vide order, dt. 16th Oct., 1991, and the interest levied under ss. 139(8) and 217 was cancelled. The Revenue filed an appeal before the Tribunal which was dismissed on 10th July, 1998. The Tribunal held that the interest under ss. 139 (8) and 217 of the Act could not be levied vide order, dt. 30th Nov., 1990, as it was not a 'regular assessment'.

(3.) IN the present case, as per facts already noticed, it is apparent that the assessment made under s. 147 of the Act on 30th Nov., 1990 was not the first or the initial assessment. The initial assessment had been framed under S. 143(1) of the Act on 27th Feb., 1986. Thus even under the aforesaid Explanation the reassessment framed on 30th Nov., 1990, under S. 147 of the Act could not be regarded as a regular assessment. In view of this clear position in law, we find that no referable question of law arises out of the order of the Tribunal. Accordingly, the petition is dismissed.