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TMI Blog1978 (7) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... for the said earlier year in ITA No. 191(Mad)/1977-78, by order 7th July, 1978, to which one of us (Vice president) was a party. the Tribunal followed the ruling of the Madras High Court in the CIT vs. Commercial Laws of India Pvt. Ltd.(1), and the decisions of the Calcutta High Court in the case of Addl. CIT, West Bengal-III vs. A. Mukerjee and Company(2), and held that it was the assessee who had manufactured the new product though by utilising the services of a printer in the process and that therefore the assessee was rightly regarded as an industrial company by the AAC. Following the above order of the Tribunal, with which we are in agreement, we uphold the order of the AAC this point. 2. The next issue that is raised in this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly: (i) Perusal of stories received by Kumudam and selecting the stories keeping in view the attitude and taste of the womanfolk who are the purchasers of the publications in large numbers. (ii) Cinema review. (iii) Signing of cheques and attending to day-to-days administrative works in the absence of the managing director." Against this order of the AAC the Revenue has come on appeal before us. The learned Departmental Representative contended that the AAC erred in holding that the payment of remuneration to Mrs. Kothai should be allowed as an admissible deduction in computing the assessee's total income. He pointed out that the payment was not made account of any commercial expediency and for the services rendered by the director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance-tax. He urged that the AAC should have upheld the levy of interest under ss. 215 and 139. On behalf of the assessee the learned counsel for the assessee supported the order of the AAC. 4. On a consideration of the rival submissions we find that there is force in the contention of the learned counsel for the assessee that on the merit of the case there is no scope for charging of interest under ss. 139 and 215 of the Act. When the assessee denies his liability to pay the penal interest at all on the ground that the conditions for the exercise of the power to levy penal interest did not exist in its case it would be open to it to challenge the order levying penal interest vide the decision of the Gujarat High Court in the case of CIT, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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