JUDGMENT

1. A seemingly simple expression, "regular assessment", occurring in Section 214 of the Income Tax Act has given rise to an endless conflict as to its meaning among the several High Courts in the country. The first decision interpreting the expression was rendered as far back as 1957 by the Bombay High Court with reference to sub-section (5) of Section 18-A of the 1922 Act. Thereafter almost every High Court has pronounced upon the question expressing varying shades of opinion.

Legislative background

2. Prior to 1944, income tax was payable by the assessee only on an assessment being made by the Assessing Officer. Though the levy/charge was created by the Indian Income Tax Act, 1922, the tax became payable only when it was ascertained in accordance with the provisions of the Act. In1944, however, Section 18-A was introduced providing for the payment of tax in advance, i.e., even prior to the making of the assessment. Section 18-A incorporated the principle "pay as you earn". The advance tax was payable on prescribed dates during the financial year preceding the relevant assessment year. Sub-section (5), as originally introduced, provided for payment of simpl