In this appeal, assesse is objecting to levy of interest under section 215 of Income-tax Act, 1961 while giving effect to appellate order. Before we consider issue involved, we will give few facts of case. 2. assessment for year 1975-76 was completed on 25-9-1978 determining total income of Rs. 23.93 lakhs. In arriving at this figure, ITO h d disallowed depreciation on scientific assets claimed by assessee amounting to Rs. 3,93,372. He also charged interest under section 215 amounting to Rs. 5,24,874. 3. company appealed against this order and Commissioner (Appeals) allowed claim for depreciation. ITO passed order giving effect to Commissioner (Appeals)'s order and interest payable under section 215 was reduced to Rs. 2,09,298. 4. department filed appeal to Tribunal against Commissioner (Appeals)'s order following depreciation of scientific assets. Tribunal set aside Commissioner (Appeals)'s order for redeciding issue. Before Commissioner (Appeals) could redecide issue, ITO passed another order on 29-8-1981 to give effect to appellate order and recompute income at Rs. 15,28,827. He charged interest under section 215 amounting to Rs. 93,118. This amount of interest was charged in respect of tax payable on depreciation claimed by assessee on scientific assets amounting to Rs. 3,93,372. 5. Against this order, assesse took up matter in appeal and claimed that it was not regular assessment and, therefore, ITO could not charge interest. 6. It is this order which is now subject matter of appeal. On appeal, Commissioner (Appeals) held that levy of interest was proper. He held that it was open for ITO to increase or decrease interest over what had been levied originally. He pointed out that, as matter of fact, ITO had not levied any additional interest. Originally, interest was computed at Rs. 5,24,876. 7. Against this finding, assessee is in appeal before us. Shri Trivedi, appearing for assessee, submitted that ITO cannot levy interest only in respect of first assessment which is termed as regular assessment. He has power to levy any further interest even if income has bene increased subsequently by way of appellate order of Bombay High Court in case of Carona Sahu Co. Ltd. [IT Reference No. 156 (Bom.) of 1976, dated 21-10-1983]. departmental representative, on other hand, for reasons given by Commissioner (Appeals), submitted that it is open for ITO to levy interest. 8. It would be seen that interest levied to that portion of income assessable which represented depreciation claimed by assessee on assets used in scientific research which was disallowed in order passed on 29-8-1981. Although ITO had not waited for Commissioner (Appeals) to pass fresh order as directed by Tribunal, Shri Trivedi, learned counsel for assessee, has not raised any serious objection to it. We should, therefore, proceed on footing that income computed by ITO on 29-8- 1981 is income computed to give effect to appellate orders. So, income to be assessed in Rs. 16,26,827. There is also no dispute before us that interest under section 215 is leviable. ITO had levied interest of Rs. 5,24,874 in original assessment order. Consequent to relief given on appeal by Commissioner (Appeals), interest was reduced to Rs. 2,09,298. This is not in dispute. As result of recomputation of income, interest under section 215 has been increased by Rs. 93,118. interest levied is really Rs. 2,09,298 + Rs. 93,18 = Rs. 3,02,416. 9. Now, according to Shri Trivedi, ITO does not have power to enhance interest levied, once it had been reduced consequent to appellate order. For this purpose, k reliance had been placed on unreported decision of Bombay High Court in case of Carona Sahu Co. Ltd. (supra). We will first consider statutory provisions authorising levy of interest under section 215 and then consider impact of decision thereon. 10. prerequisites for levy of interest under section 215 are (i) assessee should have paid advance income-tax on basis of his own estimate; and (ii) advance tax paid is less then 75 per cent of assessed tax. If these two conditions are satisfied, then simple interest would be charged from 1st April of assessed year to date of regular assessment. period for which interest is payable is thus fixed. Now, amount on which interest is payable is 'upon amount by which advance tax so paid falls short of assessed tax'. advance tax paid is known. It is nil on facts of this case. So, interest is to be paid on 75 per cent of assessed tax. 11. expression 'assessed tax' is also defined in section 215(5). It means that tax levied on basis of regular assessment less credit given for tax deducted at source and advance income-tax. So, now we have to see what is assessed tax as per regular assessment. first assessment dated 25-9-1978 resulted in assessed tax on which interest levied was Rs. 5,24,874. 12. Now, assessee had gone on appeal and as consequence total income was reduced. He passed order reducing interest to Rs. 2,09,298. Further, appellate orders restored part of relief given by earlier appellate order. assessed tax was increased and interest leviable on that basis is Rs. 3,02,416. 13. Under these circumstances, first issue is this: section 215(3) requires ITO to reduce interest levied in original assessment order, if total income computed therein is reduced by Commissioner (Appeals) by his order under section 250 of Act. If ITO reduced interest in accordance with this provision can he not restore interest if on further appeal income is fixed at higher figure? answer to this lies in interpretation of expression 'reduced' appearing in section 215(3). When there are two appellate orders, one under section 250 reducing income and another modifying that order cutting down reduction granted by first order, what figure which is said to reduce 'amount on which interest was payable'. Are we to take only figure of first appellate order? Section 215(3) reads as follows: "(3) Where as result of order under section 154 or section 155 or section 250 or section 254 or section 260 or section 262 or section 264 , amount on which interest was payable under this section has been reduced, interest shall be reduced accordingly and excess interest paid, if any, shall be refunded." 14. Now, section 215(3) envisages orders passed by appellate and revisionary orders. Orders under section 154 and 155 of Act are passed by ITO himself. order under section 250 is passed by AAC or Commissioner (Appeals), as case may be. Orders under section 254 of Act and consequent orders on reference to by High Court under section 260 of Act and Supreme Court under section 262 of act are also passed by Tribunal. In these orders, orders passed by Tribunal alone refer to orders modifying earlier orders mentioned in section. When Tribunal passes order under section 254 or in conformity to section 260 and 262 orders, it modifies order already passed under section 250. Thus, in such cases, there are two sets of orders both modifying original assessment order. There are always two possibilities in such cases. Tribunal order could be confirming order under section 250 or varying it. Variations could be upward if appellant before Tribunal was department. So, when expression 'reduced' is considered in such case, it would normally refer to only final result after Tribunal's order is given effect to. If we must hold that once order is passed under section 250 , any subsequent upward variation under order under section 254 is to be ignored, there must be sufficient compelling logic to hold so. We do not find it to be so. There is no special ground for appeal against they levy of interest under section 215. It has to be considered only against amount of income-tax payable on income computed. Therefore, when order is passed under section 250 , only total income is reduced and as consequence interest levied is also reduced. But, when second appellate authority varies figure of total income, interest also has to be calculated according to income as fixed in that order. If interest levy is kept at figure fixed by order under section 250 and that is considered immutable, then it will bear no relation to income as fixed by Tribunal's order, Thus, it would appear as if interest under section 215 can be reduced by AAC or Commissioner (Appeals) but Tribunal cannot have any jurisdiction over it. That cannot be since it is well settled that powers and jurisdiction of AAC and Tribunal are co-extensive except for power of enhancement - Bombay High Court decision in case of Ugar Sugar Works Ltd. v. CIT [1983] 141 ITR 326. 15. Thus, we come to finding that expression 'reduced' found in section 215(3) refers to reduction as per Tribunal's order modifying order passed under section 250 by first appellate authority in case where there is second appeal. 16. Now, we must see if there is anything contrary to this finding in Bombay High Court's decision in Carona Sahu. Co. Ltd.'s case (supra) main issue considered there is meaning of expression 'regular assessment' in section 214 of Act. While construing this expression their Lordships have referred to section 215 also, since sections 214 and 215 are complimentary to each other. following extract shows how section 215 is to be understood: "Under sub-section (1) of section 215 interest is payable by assessee upon amount by which advance paid falls short of assessed tax. Under sub-section (3), if pursuant to order in appeal or revision, amount paid under sub-section (1) is reduced, interest shall be reduced accordingly and excess interest paid shall be refunded. Sub-section (1) provides basis of computation of interest payable by assessee. Sub-section (3) comes into operation if amount so paid is reduced pursuant to order in appeal or revision. Sub-section (3) creates obligation to refund excess interest paid if mount computed under sub-section (1) is reduced consequent upon order in appeal or revision. There is no such obligation, express or implied, under sub-section (1) or anywhere else. Sub-section (3) is, hence, not clarifactory nor has it been inserted out of abundant caution. That it was necessary by sub-section (3) to provide for contingency that might arise if amount computed under sub-section (1) was reduced consequent upon order in appeal or revision is clear indication that words 'regular assessment' in section 215 mean only first order of regular assessment and not last operative order of regular assessment at any given point of time passed in appellate or revisional proceedings. Having regard to interpretation of section 215 and similar objectives of sections 214 and 215, k case is made out for reading 'regular assessment' in section 214 as first order of regular assessment and not as last operative order of regular assessment". 17. It would be seen that there is nothing in decision which contradicts what we have found. contention of assessee before High Court is that regular assessment would cover every order passed by ITO to give effect to appellate/revisionary order. That contention has been rejected. Now, t h e ratio laid down would come into operation if AAC/Commissioner (Appeals) enhanced assessment and as consequence, interest under section 215 was attempted to be enhanced. Since order passed to give effect to such enhancement order, it would not be considered as regular assessment under section 215(1). In such case, apart from section 215(1) , there is no other section which would empower ITO to increase levy. We are not concerned with such case. interest now levied as result of all appellate orders is not enhancement over interest levied in 'regular assessment'. 18. Under these circumstances, we do not see any error in order of Commissioner (Appeals). He has come to correct finding. 19. In result, appeal stands dismissed. *** RAYMOND WOOLLEN MILLS LTD. v. INCOME TAX OFFICER