COMMISSIONER OF INCOME TAX Vs. BHARAT REFINERIES LTD

JUDGEMENT

(1.) On October 6, 1971, Bharat Refineries Ltd., formerly known as Burmah Shell Oil Storage and Distributing Co. of India Ltd., the assessee, filed its return of income for the assessment year 1971-72, the accounting year ending on December 31, 1970. The return was accompanied with a statement of computation of the assessable income. The assessee's profit and loss account and balance-sheet were, however, not enclosed with the return.

(2.) In response to a notice under Sections 143(2) and 142(1) of the Income-tax Act, 1961, the assessee produced and filed its profit and loss account and balance-sheet for the said assessment year on June 8, 1973. The Income-tax Officer by his order dated March 27, 1974, made an assessment of the income of the assessee. He also charged interest under Section 139(8) of the Income-tax Act, 1961, for the period from October 1, 1971, till October 6, 1971, for late filing of the return.

(3.) The Commissioner of Income-tax took the view that the order of the Income-tax Officer in charging interest only for the period from October 1, 1971, till October 6, 1971, was erroneous and prejudicial to the interests of the Revenue. He, therefore, initiated proceedings under Section 263 of the Income-tax Act, 1961, by a notice dated February 4, 1976. The Commissioner found that it was the duty of the assessee to file the return of its income voluntarily under Section 139(1) of the Act in the prescribed form and verified in the prescribed manner. The assessee in the instant case was required to file its return in Form No. 1 as prescribed under rule 12 of the Income-tax Rules. It was provided in the form that if accounts were maintained under the mercantile system, copies of the balance-sheet and profit and loss account were required to be attached with the return. If accounts were audited, a copy of the auditor's report on statement of accounts was required to accompany the return.