VEENA THEATRES Vs. UNION OF INDIA

JUDGEMENT

(1.) THESE two writ applications have been heard together and are being disposed of by a common judgment.

(2.) C.W.J.C. No. 653 of 1972 relates to the assessment year 1963-64 whereas C.W.J.C. No. 257 of 1973 relates to the assessment year 1962-63 in relation to assessments made under the provisions of the Income-tax Act (hereafter referred to as "the Act"). It appears that for both the aforesaid years the petitioner did not submit its return under Section 139(1) of the Act. Notice was given under Section 139(2) of the Act to file return. In spite of the notice the return was not filed. However, before the assessment and within the time allowed under Section 139(4) of the Act, returns were filed. After the filing of the returns, there was assessment for both the years. The assessment order did not specifically state that any interest was to be charged for the late filing of the returns. The demand notice, however, indicated that the petitioner was to pay interest under Section 139 of the Act. The demand notice was served in C.W.J.C. No. 653 of 1972 on 29th March, 1968. Thereafter, on 8th May, 1968, the petitioner filed an application under Section 154 of the Act for rectification. In C.W.J.C. No. 257 of 1973 the demand notice was served on 4th April, 1967. The application under Section 154 was, however, filed after a lapse of over one year, i.e., on 7th May, 1968. The case of the petitioner in both the applications was that the interest had been wrongly charged as no interest was payable.

(3.) SEVERAL cases have been mentioned as authority for the proposition. It would, therefore, appear that a debatable point of law cannot be said to be covered by Section 154 of the Act. That the point involved in these cases is debatable is clearly apparent from the fact that different High Courts have taken different views on the point. In our view, therefore, Section 154 of the Act was not applicable and the authorities below did not commit any error in not entertaining the application under Section 154 of the Act. In this view of the matter, it is not possible to give any relief to the petitioner in these writ applications.