9911796707
TMI Blog1984 (6) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... ve charging of the interest and pleaded before the CIT (A) that the levy of interest under sub-s. (8) of s. 139 was not proper for two reasons as follows: (i) that the assessee had reasonable cause for filing the return late, that the business of the assessee was so extensive that it had to receive accounts and confirmation letters etc., from all over the country on account of which delay in finalisation of accounts had taken place and that the aforesaid reason for the delay in filing the return had been accepted by the ITO as are reasonable and he had, therefore, not imposed the penalty on the assessee in terms of cl. (a) of sub-s. (1) of s. 271 of the Act for late submission of the return. What was good reason for the late submission o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st was, in fact, not at all validly charged in the present case and there was no decision by the ITO to charge interest. Interest apparently had been charged by somebody other than the ITO and such charging of interest would never be justified in law. In support of its case the assessee relied upon the decision of the Hon'ble Calcutta High Court in the case of CIT vs. Lalit Prasad Rohini Kumar (1979) 8 CTR (Cal) 277 : (1979) 117 ITR 603 (Cal). 7. The ld. departmental representative submits that the aforesaid submission does not arise out of the order of the ld. CIT (A) and inasmuch as the assessee was not in appeal, it should not be allowed to raise the plea. In any case, the ld. departmental representative points out that the ITO had gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest he is referring to. The plain reading of the aforesaid direction of the ITO leaves the impression on one's mind that he has not applied his own mind with regard to the charging of interest from the assessee. He is leaving this subject for the determination of his office and whatever his office would do, he would sign. Such a procedure is entirely unwarranted by law and, therefore, there is a great deal of merit in the submission of the ld. counsel for the assessee that charging of interest in the aforesaid manner was invalid. The above submission of the assessee does derive support from the observation of the Hon'ble Calcutta High Court in the case of CIT vs. Lalit Prasad Rohini Kumar wherein their Lordships were considering the circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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