D. P. Mohapatra, J. - (1.) The question that arises for determination in this appeal is whether in an assessment made under Section 147 of the Income-tax Act, 1961 (for short 'the Act') it is open to the assessing authority to charge interest for default in filing return under Section 139(8) of the Act For answering this question it is necessary to determine what is a 'regular assessment' for the purpose of Section 139(8) of the Act.
(2.) Shorn of unnecessary details the facts leading to the present proceeding may be stated thus:
(3.) For the assessment year 1984-85 the assessee, appellant herein, filed a return of income in response to a notice issued under Section 148 of the Act. While completing the assessment the assessing authority charged interest under Section 139(8) and also under Section 217 of the Act. In the appeal filed by the assessee before the Commissioner of Income-tax (Appeals) it was contended that the assessment in the case was not a 'regular assessment' within the meaning of Section 2(4) of the Act and, therefore, no interest could be charged under Section 139(8) of the Act. The contention did not find favour with the appellate authority so far as the interest charged under Section 217 is concerned, but the contention was accepted in respect of the interest under Section 139(8) of the Act. The assessee carried the matter further in apepal to the Income-tax Appellate Tribunal wherein the contention of the appellant as noted above was accepted and the order passed by the assessing authority and confirmed by the appellate authority were set aside. The Tribunal held that the assessment was not a 'regular assessment' but only a 're-opened assessment' under Section 147(a) of the Act.;