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TMI Blog1974 (11) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... for the disposal of this reference may be briefly stated as follows. The assessee, M/s. Bahri Bros. (P.) Ltd., is a company and the previous year of the assessee is the financial year. For the assessment year 1964-65, the assessee was required to file return under section 139(2) of the Act by the 30th September, 1964, but no such return was filed. Subsequently, a notice under section 139(2) of the Act was served on the assessee on the 22nd of August, 1964, asking it to file the return within 35 days from the date of the service of the notice. The assessee failed to file the return within the period of 35 days. It filed the return on March 11, 1966, and the Income-tax Officer completed the assessment on January 13, 1969, and in the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal held that interest was not charged for the default of non-submission of return under section 139(4). The Tribunal further held that from the calculation of interest it appeared that the return filed by the appellant was accepted under section 139(2) and because the return was filed late, the interest was charged. The Tribunal, thereafter, upon a consideration of the provisions of section 139(2), held that only if an application was made and the date was extended for furnishing the return, interest would be charged in accordance with the provisions of sub-clause (iii) to the proviso to sub-section (1) of section 139 read with the proviso to sub-section (2) of section 139. As no application had been made in the prescribed manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nally or on extension, falls beyond the 30th day of September or, as the case may be, the 31st day of December of the assessment year, the provisions of sub-clause (iii) of the proviso to sub-section (1) shall apply." It is clear from the proviso to sub-section (2) that discretion has been given to the Income-tax Officer to extend the date for the furnishing of the return, if an application is made in the prescribed manner. It is also clear from the above proviso that the provisions of sub-clause (iii) of the proviso to sub-section (1) shall apply if the conditions laid down in the other proviso are fulfilled. Under sub-clause (iii) of the proviso to section 139(1), interest at the prescribed rate is chargeable for the late filing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only if he had asked for extension of time for submitting the return. Where the assessee did not request for time for submitting the return, clause (iii) of the third proviso to section 139(1)(b) would not apply. In that case, the assessee did not file a return of his income, in spite of notices issued to him, under sections 139(2) and 142(1) of the Act. The Income-tax Officer made a best judgment assessment under section 144 levying, in addition to the tax, penal interest under section 139(1)(b), proviso, clause (iii). The view which I have taken gets ample support from the decision of the Andhra Pradesh High Court in the case referred to above. I may state here that, in the Orissa case, the Andhra Pradesh case was not dissented from, but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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