Law:

Section:

Section 139(8) [as it stood in assessment year 1981-82], read with Section 147(a) of the Income-tax Act, 1961 - Return of income - Interest for late filing of - Whether in a proceeding under section 147(a) interest could be levied under section 139(8) - Held, no FACTS For the assessment year 1981-82, the assessee-firm did not file its return on or before the appointed date. Hence, the ITO commenced proceedings under section 147(a) and determined the tax payable for the said year and levied a certain sum as interest thereon under section 139(8). In writ, the assessee challenged the levy of interest under section 139(8) in a proceeding under section 147(a) as wholly without jurisdiction and illegal. HELD In the assessment order itself, the ITO had invoked his powers under section 147(a) and not sections 143 and 144. In Charles D'Souza v. CIT [1984] 147 ITR 694 , the Karnataka High Court, while examining a similar question, has held that interest cannot be levied in a proceeding under section 147(a). Therefore, the levy of interest by the ITO, in the instant case, was not justified. CASE REVIEW Charles D'Souza v. CIT [1984] 147 ITR 694 (Kar.) followed and relied upon. CASES REFERRED TO Charles D'Souza v. CIT [1984] 147 ITR 694 (Kar.) Kishore Mallya for the Petitioner. H. Raghavendra Rao for the Respondent. ORDER Puttaswamy, J.- For the assessment year 1981-82 relevant to the accounting year ending on 31-3-1980, the petitioner did not file his return under the Income-tax Act, 1961 ('the Act') on or before the appointed date. In that view, the Sixth ITO, commenced proceedings under section 147(a) of the Act and issued a consequent notice under section 148 of the Act calling upon the petitioner to file his return, with which the petitioner complied. On an examination of the return filed, the ITO completed the assessment on 9-8-1984…

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