Commissioner of Income Tax vs R.K. Jain

The Income Tax Appellate Tribunal, New Delhi, has referred the following question of law u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as ''the Act'') for opinion to this Court:

"Whether, on the facts and in the circumstances of the case, the ITAT was legally justified in holding that the assessment computed u/s 143(3)/148 for the first time is not a regular assessment within meaning of section 2(40) of the Act and, therefore, no interest u/s 139(8) and u/s 217 is chargeable ?"

The dispute relates to the assessment years 1978-79 to 1980-81.

Heard Sri R.K. Upadhya, learned standing counsel for the revenue. No body appears on behalf of the respondent-assessee.

In view of the decision of Supreme Court in the case of K. GOVINDAN and SONS Vs. COMMISSIONER OF INCOME TAX, , the assessment made for the first time u/s 143(3)/148 of the Act is to be treated as regular assessment within the meaning of section 139(8) of the Act. Similar would be the position with regard to chargeability of the interest u/s 217 of the Act. The Hon''ble Supreme Court has held that Explanation H to section 139(8) inserted with effect from 1-4-1985 is clarificatory in nature and applies to all earlier assessments also.

Respectfully following the aforesaid decision, we answer the above question referred to us in the negative, i.e., in favour of the revenue and against the assessee. There shall be no order as to costs.