Law:

Section:

PROVISO (iii ) TO SECTION 139(1) [AS IT STOOD PRIOR TO 1-10-1967 AND NOW SECTION 139(8), READ WITH SECTION 139(4) [AS IT STOOD PRIOR TO 1-4-1968] OF THE INCOME-TAX ACT, 1961 - RETURN OF INCOME - INTEREST FOR LATE FILING OF - WHETHER INTEREST FOR LATE FILING OF RETURN IS LEVIABLE EVEN WHERE ASSESSEE HAS FILED NO PETITION FOR EXTENSION OF TIME FOR FILING RETURN AND HAS SUBMITTED RETURN WITHIN TIME SPECIFIED UNDER SECTION 139(4) - HELD, YES Facts The assessee-firm filed a return of income for the assessment year 1965-66 within the time allowed under section 139(4). The ITO, however, estimated the gross profits of the assessee-firm and made assessment accordingly. The ITO further charged interest for late filing of the return also. The AAC rejected the assessee's appeal. In its appeal before the Tribunal, the assessee contended that interest could be charged only if the assessee had applied for extension of time in submitting its returns. The Tribunal, however, upheld the ITO's assessment as also charging of interest. On reference, the assessee contended that the proviso to section 139(1), even if it stood attracted by section 139(4), would not enable the revenue to levy interest in cases where the assessee had not applied for extension of time. Held It is held in a number of cases that the filing of an application for extension of time by the assessee and granting of such extension by the ITO are not conditions precedent for the application of sub-section (4) of section 139 [as it stood prior to 1-4-1968]. Under the provisions of section 139(4) read with proviso (iii) to section 139(1) [as it stood prior to 1-4-1967 and now section 139(8)], an assessee who had not furnished his return within the time given to him in the notice under sub-section (2) of section 139, may file his return before the assessment is made so long as it is filed within the period of four years from the end of the assessment year under consideration subject, however, to the condition that such belated filing would attract the provisions of proviso (iii) to sub-section (1) and make the assessee liable to pay interest as mentioned in the said proviso. Section 139(4) indicates the legislative…

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