COMMISSIONER OF INCOME TAX Vs. GOPAL BHANDARY T

JUDGEMENT

(1.) UNDER s. 256(1) of the IT Act, 1961 (the "Act"), the Tribunal has referred the following two questions

(2.) THE reference arises out of an order of assessment made on the assessee for the asst. yr. 1975- 76. In demanding the tax, the ITO also demanded interest under s. 217(1A) of the Act to the extent of Rs. 25,740. THE assessee appealed to the AAC against the levy of interest under s. 217 (1A) of the Act. THE AAC found that the appeal was not maintainable. He, however, considered the matter on merits and dismissed the appeal.

(3.) IT seems to us that the Tribunal was justified in taking that view. Sub-ss. (1A) and (2) of s. 217 of the Act which were introduced by the Finance Act, 1969, w.e.f. April 1, 1970, read: Sec. 217 :