COMMISSIONER OF INCOME TAX Vs. WILIARD INDIA LTD

JUDGEMENT

(1.) This reference relates to the assessment year 1977-78. The only point of dispute relates to the charging of interest under Section 216 of the Income-tax Act, 1961. The Income-tax Officer, while completing the assessment, charged interest under Section 216 of the Act without passing a speaking order. The assessee appealed before the Commissioner of Income-tax (Appeals) who held that the Income-tax Officer should have passed a speaking order in respect of charging interest under Section 216 of the Act. He, therefore, remanded the matter to the Income-tax Officer for passing a speaking order in respect of levying interest under Section 216 of the Act. Being aggrieved, the assessee went to the Tribunal. There the contention was that the Income-tax Officer did not pass any speaking order and, accordingly, his order should be vacated. Reliance was placed on the judgment of this court in the case of Hindusthan Sanitary Ware and Industries Ltd. v. CIT reported in [1978] 114 ITR 85.

(2.) The Tribunal held that the issue is directly covered by the decision of this court in Hindusthan Sanitary Warp and Industries Ltd. [1978] 114 ITR 85. The Tribunal also considered the merits of the contentions and found that, if the final order of the appellate authority was taken into consideration; the assessee was not to be charged interest under Section 216 of the Act. Accordingly, the Tribunal set aside the order of the Commissioner of Income-tax (Appeals).

(3.) On these facts the following question of law has been referred to this court :