The court held that for the AY. 1985-86, in the regular assessment proceeding was completed on 28th March 1988, and interest was u/s 215 of the Act. Since the interest u/s 215 was charged in the regular assessment the AO had the power to charge interest u/s 215 while carrying out the reassessment. The court held that if the delay in competition of assessment is not attributable to the assessee the interest can be waived under Rule 40(1) of the Income-tax Rules, 1962. (ITA No. 100 of 2002 dt. 30-8-2001) (AY. 1985-86)
Bennett Coleman & Co. Ltd. v. Dy.CIT (2022) 441 ITR 25/ 211 DTR 227/ 325 CTR 545 (Bom.)(HC)
S. 215 : Interest payable by assessee-Waiver of interest-Regular assessment means first order / original assessment-Delay not attributable to the assessee the interest is not leviable. [S. 139(8), 143(3), 144, 215(3) ITR, 1962, Rule, 40(1)]