2000 (11) TMI 66 - HC - Income Tax

Summary

Issues:
Petition under section 256(2) of the Income Tax Act, 1961 for referring a question of law to the High Court regarding the charging of interest under section 139(8) for the assessment year 1975-76.

Analysis:
The case involved a petition under section 256(2) of the Income Tax Act, 1961, seeking the Income-tax Appellate Tribunal to refer a question of law to the High Court. The Assessing Officer had completed the assessment for the year 1974-75 and later noticed that the assessee had received additional compensation and interest, which was not declared for assessment. Subsequently, proceedings were initiated under section 147 of the Act, and the Assessing Officer assessed the total income of the respondent and levied interest under section 139(8) of the Act. The respondent then filed an application under section 154 of the Act, seeking correction of the interest charged, citing a similar case involving co-owners where interest was not levied. The Assessing Officer rejected the application, but the Tribunal allowed the appeal, holding that no interest was chargeable under section 139(8) of the Act.

In the High Court, the counsel for the Revenue argued that the Tribunal erred in allowing the application under section 154, as there was no apparent mistake in the Assessing Officer's order. The counsel also contended that relying on a decision involving co-owners was not justifiable since it was not raised before the Assessing Officer. On the other hand, the respondent's counsel cited relevant judgments to support the position that the issue raised did not necessitate adjudication by the High Court.

The High Court considered the arguments presented and referred to a previous case law where it was held that a decision in one case cannot be the basis for finding a mistake in another order. The Court also noted that the decision relied upon by the Tribunal for rejecting the Revenue's request did not pertain to the question raised in the present case. Consequently, the Court allowed the petition, directing the Tribunal to refer the question to the High Court for adjudication.

Therefore, the High Court allowed the petition and instructed the Tribunal to refer the question regarding the charging of interest under section 139(8) to the High Court for further consideration and resolution.