1989 (4) TMI 23

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..... ax Appellate Tribunal passed in connection with the assessment year 1974-75 have been referred to this court for decision under section 256(1) of the Income-tax Act, 1961 (hereinafter "the Act") : "(i) Whether the Appellate Assistant Commissioner of Income-tax erred in law in entertaining and deciding an appeal relating to interest charged under section 139(8) and whether the Tribunal also erred .....

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..... ntral Provinces Manganese Ore Co. Ltd. v. CIT [1986] 160 ITR 961, where it was pointed out that levy of interest is part of the process of assessment. This view was taken despite the fact that sections 143 and 144 of the Act do not specifically provide for the levy of interest and the levy is attributable to section 139(8) or section 215 of the Act. It was nevertheless held that the levy of intere .....

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..... e the advance tax duly paid covers the entire amount of tax assessed, there was no question of charging the registered firm with interest even though the return was filed by it beyond the time allowed, regard being had to the fact that payment of interest is only compensatory in nature. As the entire amount of tax was paid by way of advance tax, it was observed that the question of payment of any .....

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