Padma Khastgir, J. - (1.)In this appeal, a short point for consideration is as to the meaning and interpretation of the expression "regular assessment" under Section 214 of the Income-tax Act, 1961. Section 214 of the Income-tax Act, 1961, provides as follows :
"214. Interest payable by Government. -- (1) The Central Government shall pay simple interest at twelve per cent, per annum on the amount by which the aggregate sum of any instalments of advance tax paid during any financial year in which they are payable under Sections 207 to 213 exceeds the amount of the tax determined on regular assessment, from the 1st day of April next following the said financial year to the date of the regular assessment for the assessment year immediately following the said financial year, and where any such instalment is paid after the expiry of the financial year during which it is payable by reason of the provisions of Section 213, interest as aforesaid shall also be payable on that instalment from the date of its payment to the date of the regular assessment : Provided that in respect of any amount, refunded on a provisional assessment under Section 141A, no interest shall be paid for any period after the date of such provisional assessment.

(1A) Where on completion of the regular assessment the amount on which interest was paid under Sub-section (1) has been reduced, the interest shall be reduced accordingly and the excess, if any, paid shall be deemed to be tax payable by the assessee and the provisions of this Act shall apply accordingly. (2) On any portion of such amount which is refunded under this Chapter, interest shall be payable only up to the date on which the refund was made."

(2.)Interest is payable by the Government on the amount of advance tax paid during any financial year in which they are payable if it exceeds the amount of the tax determined on regular assessment from April 1 next following the financial year to the date of the regular assessment. Hence, a pertinent question arose as to up to which date such interest would be payable by the Government on the advance tax already paid. By the use of the expression "regular assessment", does it mean the first order of regular assessment passed by the Income-tax Officer or does it mean the last operative order of assessment, as a result of any appellate or revisional proceeding. Advance taxes are paid in a current year on an estimated income and if, after final assessment, any sum is refundable by the authorities by virtue of the provisions made in Section 214 of the Income-tax Act, the excess amount is repayable with interest. What calls for consideration is the date up to which such interest will have to be calculated. Section 2, Sub-section (40), defines regular assessment in the manner following :
"2(40) 'regular assessment' means the assessment made under Section 143 or Section 144."

(3.)Section 143 provides for the procedure of assessment to be made by the Income-tax Officer with reference to the return and the documents with reference to the records of the assessment of past years and determine the sum payable by the assessee or refundable to him on the basis of such assessment under various provisions as contained in the Section itself, whereas Section 144 makes provision for a best judgment assessment by the Income-tax Officer where any person fails to make the return required by any notice given under Section 139 or fails to comply with all the terms of the notice issued under Section 142 or, having filed a return, fails to comply with all the terms of the notice issued under Section 143. In those cases, the Income-tax Officer, after taking into account all relevant materials with him, shall make the assessment to the best of his judgment and determine the sum payable by the assessee or refundable to the assessee on the basis of such assessment. Such assessment, whether under Section 143 or Section 144, is amenable to appeals. From an order against the assessee under Section 143 or 144, where the assessee objects to the amount of income so assessed or to the amount of tax determined or to the amount of loss computed, an appeal lies to the Commissioner of Income-tax (Appeals) from the order of the Income-tax Officer and to the Appellate Assistant Commissioner under Section 246(1) and 246(2) of the Income-tax Act. Section 246 provides that any assessee aggrieved by any of the orders as enumerated in the section itself of an Income-tax Officer may appeal to the Appellate Assistant Commissioner. Sub-clause (c) of Section 246(1) provides for such right of appeal from any order of assessment made under Sections 143 and 144. An appeal to the Appellate Tribunal lies from the order of the Commissioner or the Appellate Assistant Commissioner. Under the circumstances, when the original regular assessment made by the Income-tax Officer on appeal is reversed and/or modified by reducing the amount of tax to be payable, then the Income-tax Officer implements the said appellate order. Hence, the question calls for determination as to the amount of interest payable on the sums so refunded whether up to the date of the original order of assessment made by the Income-tax Officer or up to the date when such appellate order has been passed. The learned lawyer on behalf of the appellant, Dr. Debi Pal, by giving an example submitted that if originally an assessment had been made by the Income-tax Officer in a sum of Rs. 10 lakhs which ultimately had been reduced by the appellate authority to 1/4th of the sum so assessed, i.e., a sum of Rs. 2 lakhs, then would it be justifiable not to pay interest on the sums so refunded up to the date when the final assessment order was made.