RATANLAL DHONDIRAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference on a case stated under S. 256(1) of the IT Act, 1961 (referred to hereinafter as "the said Act").

(2.) THE question that arises before us for our determination is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the penal interest was not waived by the ITO for the asst. year 1963 64?"

(3.) BEFORE dealing with the argument of Mr. Mhaispurkar, we may briefly refer to the relevant portion of the said S. 217 of the said Act which deals with the levy of interest which is popularly known as penal interest. It is common ground that the only part of S. 217 with which we are concerned, is Sub S. (1) thereof. The said Sub S. (1) of S. 217 runs thus :