(1.) THREE different firms have filed the above three original petitions. They seek a declaration to the effect that Expln. 2 to Section 139(8)(a) of the I.T. Act, 1961, in so far as it provides, that in the case of a registered firm for delayed filing of the return for levying interest, the tax payable on the total income shall be the amount of tax which would have been payable if the firm had been assessed as an unregistered firm, is violative of Article 14 of the Constitution of India and is unconstitutional and void. The consequential assessment orders imposing interest on such basis are also attacked. Under Section 139 of the I.T. Act, every person whose total income during the previous year exceeded the maximum amount which is not-chargeable to income-tax, shall furnish a return of his income in the prescribed form and verified in the prescribed manner within the time stipulated therein. A firm is also bound to comply with such requirements. One of the consequences for not filing the return within the specified date is the liability to pay interest specified under Section 139(8)(a) of the Act. Section 139(8)(a) of the Act and the Explanations provide as follows :--
(2.) COUNSEL for the petitioners contended that for the failure to file the return within the specified time and in levying interest under Section 139(8)(a) read with Expln. 2, the ITO estimated the tax payable by the petitioners as if the petitioners were assessed as an unregistered firm and levied interest on such notional basis. This has been so done, though the petitioner is a registered firm and is entitled to the benefits of the Act as a registered firm. Expln. 2 to Section 139(8)(a) of the Act is attacked as arbitrary, unjust and discriminatory and as violative of Article 14 of the Constitution of India.
(3.) SECTION 271 (2) of the I.T. Act is to the following effect :