WAHAB BROTHERS Vs. INSPECTING ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THE petitioner herein has prayed in this Writ Petition for the issue of a writ of certiorari to quash the order dt. 10-10-1975 of the CIT, the 2nd respondent herein, confirming the order dt. 20-12-1973 of the IAC, the first respondent herein, so far as it directs the payment of interest u/s 139(8) of the IT Act, 1916 (hereinafter referred to as "the Act") for the asst. yr. 1972-73.

(2.) THE petitioner is a firm carrying on business as Esso Dealers in Thanjavur. THE firm was assessed to income tax on a total income of Rs. 70,300 by the ITO for the year 1972-73 as against the return of income filed by the assessee on 26-5-1973 admitting a total income of Rs. 60,406. While making the assessment on a total income of Rs. 3,416 towards interest treating the firm as an unregistered firm for the purpose of calculation of interest as per s. 139(8). THE petitioner made a request to the IAC to waive the interest. But that request was rejected. THEreupon, the petitioner filed a revision petition to the CIT u/s 264 of the Act contending that it was discriminatory to treat the registered firm as unregistered for the purpose of the levy of interest u/s 139(8) inasmuch as the levy of interest is to compensate for the delay in completion of assessment and the consequent realisation of tax. Reliance was placed in support of the contention on the decision of the Karnataka High Court in (1975) 99 ITR 32 (Kar) Nagappa M. & Ors. v. ITO, Central Circle I, Bangalore.