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Section 139(8) of the Income-tax Act, 1961 - Return of income - Interest for late filing of - Assessment year 1977-78 - Whether, where no tax was payable by firm as registered firm, no interest could be levied under section 139(8) treating firm as an unregistered firm - Held, yes FACTS The assessee was a registered firm. After taking into account the advance tax paid by the assessee and the tax deducted at source, no tax was payable. However, the ITO charged interest under section 139(8) for late submission of the return. The assessee disputed its liability for payment of interest. The Tribunal allowed the assessee's appeal holding that no interest under section 139(8) was chargeable treating the firm as an unregistered firm when no tax was payable by the firm as a registered firm. On reference: HELD Following the decision of the Supreme Court in Ganesh Dass Sreeram v. ITO [1988] 169 ITR 221 wherein it was held that where the advance-tax covered the entire amount of tax assessed by the ITO under the Act, there will no question of charging the registered firm with interest even though the return is filed by it beyond the time allowed, it was to be held that the Tribunal was justified in its view. Note : The case was decided in favour of the assessee. CASE REVIEW Ganesh Dass Sreeram v. ITO [1988] 169 ITR 221 (SC) followed and relied upon. CASES REFERRED TO Ganesh Dass Sreeram v. ITO [1988] 169 ITR 221 (SC). B.R. Arora for the Applicant. S.C. Mehta and J.L. Daga for the Respondent. JUDGMENT This reference is under section 256(1) of the Income-tax Act, 1961, at the instance of the Revenue to answer the following question of law, namely: "Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in holding that no interest under section 139(8) is chargeable treating the firm as an unregistered firm in a case where no…

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