CHANDRA METAL CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question of law which requires our consideration is :

(2.) THE question relates to the assessment year 1967-68. For this year, the return of income was due to be filed by September 30, 1967. It was actually filed on March 21, 1968. In due course, the ITO completed the assessment by an order dated August 5, 1968. In the assessment form and the demand notice a sum of Rs. 2,658 was shown as payable as interest under Section 139(1) of the Act for delay in submission of returns.

(3.) MR. Gulati then submitted that in point of law no interest was chargeable and hence the ITO had no jurisdiction to initiate proceedings for charging interest by way of rectification. As already said, this court's view is that in the circumstances the interest is chargeable. Therefore, the ITO had jurisdiction to charge interest. This question, however, is not very material because the ITO is not trying to charge interest for the first time by way of rectification ; he had already charged it. He is now merely trying to rectify a computational error.