RAMESH CHANDRA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a joint reference at the instance of the assessee as well as of the Revenue for answering certain questions of law said to arise out of the Tribunal's order. The questions of law referred at the instance of the assessee are the following, namely :

(2.) WHETHER the Tribunal after its finding that the business of Subhash Medical Stores belongs to Shri Ramesh Chandra Mundra was justified in treating the contention of the assessee meaningless that the assessee should have been given an opportunity by the Income-tax Officer to file Form No. 11 ?

(3.) THE only point surviving for our decision is the one relating to the interest covered by the question referred at the instance of the Revenue. Admittedly, the present is a case in which the appeal was filed not merely against interest alone but on several matters including the status in which the assessment was to be made, and the tax liability as well as the quantum. THE levy of interest was a matter consequential to the decision of the main puints raised in appeal relating to the status and quantum. In such a situation, there is no basis to hold that the appeal was incompetent in part only in so far as it assailed the levy of interest as well. It is obvious that the question of interest would arise subsequent to the decision of the main points in appeal in respect of which consequential direction has naturally to be given. We may refer to the earlier decisions of this court in CIT v. Devichand Pan Mal [1986] 160 ITR 545 and CIT v. Associated Stone Industries (Kotah) Ltd. [1981] 130 ITR 868, taking the same view.