- (1.) HEARD learned counsel for the appellant.
(2.) THE appeal relates to asst. yr. 1988-89. The only question sought to be raised by the Revenue in this appeal is that since the amendment made in S. 139(8) where any regular assessment is made for the first time, whether under S. 143 or under S. 147 of the IT Act for the purpose of levy of interest, it is still governed by provision of S. 139(8). The Supreme Court has laid down in Modi Industries Ltd. and Ors. vs. CIT and Anr. (1995) 128 CTR (SC) 361 : (1995) 216 ITR 759 (SC) : TC S4.369 that 'the "Regular assessment" has been defined in S. 2(40) to mean the assessment made under ss. 143 or 144. In the context of ss. 140A, 141 and 141A "regular assessment" could only mean the original assessment made under S. 143 or 144. Having regard to the scheme of the Act and use of the phrase "regular assessment" in various sections of the Act. In S. 214 "regular assessment" has been used in no other sense than the first order of assessment passed under ss. 143 to 144. If any consequential order has to be passed by the ITO to give effect to an order passed by the higher authority, that consequential order cannot be treated as 'regular assessment" nor can the date of the consequential order be treated as the date of the regular assessment.'
(3.) BY way of amendment under S. 139(8) where no regular assessment has been made under s. 143 or 144 in the first instance, the assessment under S. 147 is also to be treated as regular assessment.;