Law:

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Section 139(8) of the Income-tax Act, 1961 - Return of income - Interest for late filing of - Assessment year 1972-73 - Whether treatment of registered firm as unregistered for purpose of levy of interest under section 139(8) cannot be said to be in any way arbitrary and as such does not violate article 14 of Constitution - Held, yes FACTS While making the assessment, the ITO treated the assessee-firm as an unregistered firm for the purpose of calculation of interest as per section 139(8). The assessee's request to the IAC to waive the interest was rejected. Thereupon, the assessee filed a revision petition under section 264 contending that it was discriminatory to treat the registered firm as unregistered for the purpose of the levy of interest under section 139(8) inasmuch as the levy of interest was to compensate for the delay in completion of the assessment and the consequent realisation of tax. The Commissioner rejected the said contention. On writ : HELD In view of the decision in Mahendra Kumar Iswarlal & Co. v. Union of India [1974] 94 ITR 65 (Mad.) it was to be held that subjecting registered firms to the same treatment as unregistered firms in the matter of levy of interest cannot be said to be in any way arbitrary or a colourable exercise of legislative power and as such does not violate article 14 of the Constitution. In view of aforesaid, instant petition was to be dismissed. Note: The case was decided against the assessee. CASE REVIEW Mahendra Kumar Iswarlal & Co. v. Union of India [1973] 91 ITR 101/[1974] 94 ITR 65 (Mad.)(DB), Ganesh Das Sreeram v. ITO [1974] 93 ITR 19 (Gauhati), Chhotalal & Co. v. ITO [1976] 105 ITR 230 (Guj.), Jiwanmal Hospital v. ITO [1979] 119 ITR 439 (MP), Hindustan Steel Forgings v.CIT [1980] 121 ITR 793 (Punj. & Har.) and Mohanlal Soni v. Union of India [1983] 143 ITR 436 (Cal.) followed and relied upon. M. Nagappa v. ITO [1975] 99 ITR 32 (Kar.) and Addl. CIT v. Mahadeshwara Lorry Service [1981] 129 ITR 516 (Kar.) distinguished. CASES REFERRED TO Mahendra Kumar Iswarlal & Co. v. Union of India [1973] 91 ITR 101/[1974] 94 ITR 65 (Mad.) (DB), Ganesh Das Sreeram v. ITO [1974] 93 ITR 19 (Gauhati), Chhotalal…

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