COMMISSIONER OF INCOME TAX Vs. MANNALAL NIRMAL KUMAR

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, has referred the following question of law arising out of the order of the Tribunal dated July 29, 1980, for the assessment year 1964-65 :

(2.) THE brief facts of the case are that the assessee-Hindu undivided family was originally assessed by way of regular assessment on October 3, 1968, on a total income of Rs. 11,051. THEreafter, a settlement petition was moved to the Commissioner of Income-tax (Appeals) on September 26, 1974, which was decided on March 24, 1975, and, pursuant to this settlement, the additional income of Rs. 91,000 was brought to tax for the year under appeal for which a voluntary return was submitted by the assessee on June 28, 1984. THE assessment on the said return was completed under Section 147(a) on December 31, 1975, on a total income of Rs. 1,02,051. Interest under Section 217 amounting to Rs. 1,204 was charged. Subsequently, the Income-tax Officer sent a notice under Section 154 stating that a lesser interest was charged by mistake and that the amount of interest was to be revised.

(3.) THIS court, in CIT v. Multimetals Ltd. [1991] 187 ITR 98, has held that a fresh assessment made under the direction of the Commissioner of Income-tax under Section 263 is not a regular assessment and interest under Section 215 cannot be levied in such assessments.