High Court Of Madras
CIT vs. A. Manickam & Sons
Sections 139(8), 215
Asst. Year 1974-75
R. Jayasimha Babu & K.P. Sivasubramaniam, JJ.
TC No. 701 of 1994
20th August, 2002
Counsel Appeared
T.C.A. Ramanujam, for the Revenue : None appeared, for the Assessee
JUDGMENT
R. JAYASIMHA BABU J. :
The reference is at the instance of the Revenue. The question referred is : “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in upholding the decision of the Dy. CIT(A) deleting the interest charged under s. 139 and s. 215 for the asst. yr. 1974-75 ?” The assessee-firm is a manufacturer of cement pipes. It had returned an income of Rs. 2,000. The AO proposed to fix the income at Rs. 6,90,100. In the assessment, the net income of the assessee was estimated at Rs. 1,00,000. Income-tax of Rs. 8,100 was levied thereon, interest of Rs. 14,560 was levied under s. 139(8) and of Rs. 4,218 was levied under s. 215. The assessee appealed against that order. The appellate authority, while upholding the income assessed by the AO, set aside the levy of interest under s. 139(8) as also under s. 215. The appellate authority found that the estimate of income that had been given by the assessee was reasonable having regard to the turnover of the business. That order of the appellate authority was sustained by the Tribunal. That was clearly, within the jurisdiction of the Tribunal. The Dy. CIT(A) has given cogent reasons for deleting the levy of interest. We do not find any justification at all for this reference. However, as the assessee is not represented before us, we refrain from awarding costs. The question referred to us is answered against the Revenue and in favour of the assessee.
[Citation : 258 ITR 349]
