BODDU SEETHARAMASWAMY Vs. COMMISSIONER OF INCOME TAX MADRAS

JUDGEMENT

(1.) The Income-tax Appelate Tribunal, Madras Branch referred for the opinion of this Court the following questions :

(2.) The facts are in a small compass and they are : The assessee carried on business in the manufacture and sale of groundnut oil, and cake. In making the assessment for the year 1945-46, the Income-tax Officer arrived at an assessable income of Rs. 40,739.00 as the assessee gave a wrong estimate of the income, he directed him to pay penal interest at 6 per cent under S. 18-A (6) of the Act upon the amount by which the tax already paid by him fell short of 80 percent. of the tax imposed on the basis of the regular assessment.The assessee preferred an appeal against the order of assessment to the Appellate Assistant Commissioner and contended, inter alia, that the order imposing penal interest was wrong, but the appeal was dismissed. When he carried on appeal the said matter, the Income-tax Appellate Tribunal confirmed the ground that no appal lay against an order under S. 18-A of the Act. The aforesaid question was referred under the said circumstances.

(3.) The learned counsel for the assessee contended that an order imposing penal interest is part of the order of assessment and therefore an appeal lies under S. 30 of the Act. To appreciate his argument, the following provisions may be read :Section 18 - A (6) :