COMMISSIONER OF INCOME TAX Vs. SANTLAL KALYANI AND COMPANY

JUDGEMENT

(1.) 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 :

(2.) THE relevant, assessment year is 1977-78. THE assessee i.s a registered firm. After taking into account the advance tax paid by the assesses and the tax deducted at source, no tax was payable. However, the Income-tax Officer charged interest under Section 139(8) of the Income-tax Act, 1961, for late submission of the return. THE assessee disputed its liability for payment of interest. In the appeal filed before the Commissioner of Income-tax (Appeals), the assessee's contention was accepted by the Commissioner of Income-tax. THE Tribunal has upheld the view of the Commissioner of Income-tax. Hence, this reference at. the instance of the Revenue.