Commissioner of Income Tax vs A. Manickam and Sons

R. Jayasimha Babu, J.—The reference is at the instance of the Revenue. The question referred is :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in upholding the decision of the Deputy Commissioner (Appeals) deleting the interest charged u/s 139 and Section 215 for the assessment year 1974-75 ?"

The assessee-firm is a manufacturer of cement pipes. It had returned an income of Rs. 2,000. The Assessing Officer proposed to fix the income at Rs. 6,90,100. In the assessment, the net income of the assessee was estimated at Rs. 1,00,000. Income Tax of Rs. 8,100 was levied thereon, interest of Rs. 14,560 was levied u/s 139(8) and of Rs. 4,218 was levied u/s 215. The assessee appealed against that order. The appellate authority, while upholding the income assessed by the Assessing Officer, set aside the levy of interest u/s 139(8) as also u/s 215. The appellate authority found that the estimate of income that had been given by the assessee was reasonable having regard to the turnover of the business. That order of the appellate authority was sustained by the Tribunal. That was clearly, within the jurisdiction of the Tribunal. The Deputy Commissioner (Appeals) has given cogent reasons for deleting the levy of interest. We do not find any justification at all for this reference. However, as the assessee is not represented before us, we refrain from awarding costs. The question referred to us is answered against the Revenue and in favour of the assessee.