DY CIT Vs. MANUEL SONS WOOD INDUSTRIES

JUDGEMENT

(1.) This Writ Appeal impugns a common judgment of the learned single Judge dated 14th June, 1996 in O.P. Nos. 11187 and 11190 of 1991.

(2.) The short facts necessary for disposal of this appeal are as under:

(3.) The petitioners in both the Original Petitions are partners in six different firms. The income from the firms is the substantial income of the petitioners. The petitioners filed returns and paid advance tax under the Income Tax Act, 1961 (hereinafter referred to as the Act), as per the accounts of the firms for the assessment years 1983-84, 1984-85 and 1985-86. The assessment orders for the said three assessment years were made on 25.3.1987, 7.3.1988 and 28.3.1988. The firms were also assessed for the assessment years and the incomes returned by the firms were increased by additions. Consequently, the incomes returned by the petitioners as incomes from the firms also were not accepted and assessed at higher figures. The advance tax paid by the petitioners for the assessment years was less than 75% of the assessed tax and, therefore, the assessing officer levied interest under S.215 of the Act for all the three assessment years. Petitioners filed applications for waiver of interest under S.215(4) of the Act for all the above assessment years. The main ground urged by the petitioners was that they could not anticipate the increase in the income at the time of filing the advance tax as they were guided by the income statements given to them by the firms. Because the incomes of the firms were assessed at larger figures as a result of the assessment proceedings pertaining to the income of the firms, they, as partners of the firms, were assessed to larger incomes which were not within their anticipation or control.