COMMISSIONER OF INCOME TAX Vs. SABUNANI B V

JUDGEMENT

(1.) THE question of law referred to this Court in this reference at the instance of the Revenue is:

(2.) IT is common ground that the assessment of the assessee for the assessment year was completed under S. 143(3) on a total income of Rs. 83,778. The assessee had challenged the addition of Rs. 48,000 included therein and also the interest charged under S. 139(1). The addition of Rs. 48,000 was deleted by the AAC but he refused to interfere as regards levy of interest under s. 139(1) on the ground that no appeal lay against the levy of interest under S. 139(1) The Tribunal, on further appeal by the assessee, accepted the assessee's contention and held that the appeal was competent against the levy of interest under S. 139(1).

(3.) IN the above case, as stated earlier, the total income of the assessee was reduced by a sum of Rs. 48,000. It cannot, therefore, be denied that the liability to be assessed to tax including interest under S. 139(1) was to some extent disputed and, therefore, the appeal against the levy of interest under S. 139(1) was competent. Therefore, the question is answered in the affirmative and in favour of the assessee. The Department will pay the costs of the reference to the assessee.