Commissioner of Income Tax vs R. Kamalam

N.V. Balasubramanian, J.—It is a reference at the instance of the Revenue. The income tax Appellate Tribunal has stated the case and referred the following question of law in relation to the assessment year 1984-85. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that interest under sections 139(8) and 215/217 of the income tax Act, cannot be levied under re-assessment proceedings u/s 147?

It is stated by the learned counsel appearing for the Revenue that the issue raised in the question of law is covered against the assessee by the decision of the Supreme Court in K. GOVINDAN and SONS Vs. COMMISSIONER OF INCOME TAX, ) wherein the Supreme Court has held that the assessment made for the first time u/s 147 of the Act is regular assessment and interest u/s 139(8) is leviable. It is a case of levying interest not only u/s 139 but also under sections 215 and 216, where the language employed in all the sections are similar.