In Brief
This case concerns whether the Income Tax authority can re-assess interest under the Interest Tax Act, 1974 when no original assessment order was ever passed. The assessee filed a return but received no initial assessment. Years later, the Assessing Officer attempted to re-open and reassess interest. The assessee challenged this. The Supreme Court held that re-assessment is only possible when an original assessment already exists. Since no original assessment order was passed here, re-assessment could not be validly initiated. The Court set aside the High Court's reversal and restored the Tribunal's decision in the assessee's favour.
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