TMI Blog1982 (3) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer for levy of interest under section 139(1)(b)(iii)? " The brief facts are these. The respondent-assessee, M/s. Himalaya Drug Company, Dehradun, is a partnership firm. For the assessment year 1970-71, it filed its return on January 27, 1971, that is, after a delay of 27 days. The ITO made the assessment and while preparing ITNS-150 a sum of Rs. 382 was charged as interest under s. 139(1) of the Act, taking the status of the assessee as that of a registered firm. Subsequently, the ITO found that interest had been wrongly charged treating the assessee as a registered-firm. On the other hand interest under s. 139 should have been charged treating the assessee as an unregistered firm which came to Rs. 17,708. In his opinion, it was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ITNS-150 could be treated as an order charging interest which could be corrected under s. 154 of the Act. As observed by the Tribunal: " In our view this is a tax calculation form meant purely for departmental purposes and hence cannot be equated with an order of the ITO, such as an assessment order or any other order, by which the assessee is made liable to pay a sum by way of interest, penalty or tax." The Tribunal has also taken the view that even the levy of interest at Rs. 382 on the basis of the tax payable by the assessee as a registered firm was not correct. The correct amount should have been Rs. 463 and from this fact it could be inferred that there was no ascertainable basis or an order for charging interest at Rs. 382. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date for furnishing the return under sub-s. (1) or sub-s. (2), the assessee shall be liable to pay simple interest at twelve per cent. per annum. There is a proviso to this subsection which says that the ITO may, in such cases and in such circumstances as may be prescribed, reduce or waive the interest payable by any assessee under this sub-section. In other words, the ITO is expected to apply his mind to the facts and circumstances of the case and if the assessee is able to satisfy him, he may reduce or waive the interest payable under this sub-section. In the present case, the ITO had not passed any order charging interest under this provision. As noted above, it was only a sum of Rs. 382 which was mentioned as payable by way of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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