- (1.)The appeal is filed by the Revenue against the order of the Income Tax Appellate Tribunal Madras 'D' Bench made in I.T.A. No. 2874/Mds/2004 dated 22.11.2005. The relevant assessment year is 1997-98.
(2.)The assessee, a firm, filed its return of income for the assessment year 1997-98 on 25.8.1999 admitting income of Rs. 86,100/-. As the return of income was filed beyond the time limit prescribed under Section 139(1) and 139(4) of the Income Tax Act, the assessing officer completed the assessment treating the assessee as association of persons by disallowing the claim of interest on capital and salary to working partners. Aggrieved by that order, the assessee filed an appeal to the Commissioner of Income Tax (Appeals), who held that the treatment of the assessee as association of persons by the assessing officer was not correct and remanded back the matter to the assessing officer to decide the issue on dis-allownace. Aggrieved by the same, the Revenue filed an appeal to the tribunal. The Tribunal has confirmed the order of the Commissioner of Income Tax (Appeals) on the ground that the assessment was not made under Section 144 and as such Section 184(5) would not apply. The correctness of the said order is now assailed before us by the Revenue by filing the appeal and framing the following substantial questions of law:
Whether in the facts and circumstances of the case, the Tribunal was right in holding that the provision of the Section 184(5) cannot be invoked to treat the assessee's status as Association of Persons when the assessment is not under Section 144.

(3.)According to the learned Counsel for the Revenue, the infraction on the part of the assessee in not filing the returns within the period as provided under Section 139 is one of the failures stated in Section 144(1) of the Income Tax Act. Hence the assessee has to be assessed as an Association of persons and the view expressed by the authorities on the statutory provisions cannot be legally sustainable.