Sen, J. - (1.) The facts and the proceedings leading up to this reference are shortly as follows : In the assessment year 1958-59, the relevant previous year ending on the 31st March, 1958, Messrs. Karam Chand Thapar & Bros. (P.) Ltd , Calcutta, the assessee, filed a return showing an income of Rs. 28,14,601. Subsequently, the assessee filed a revised return showing such income as Rs. 5,42,093. Ultimately, the assessee was assessed on a total income of Rs. 30,08,425. The assessee had paid advance tax under Section 18A of the Indian I.T. Act, 1922, which fell short of 80% of the tax ultimately determined to be payable by the assessee in the regular assessment and the ITO charged a sum of Rs. 50,678.69 as interest under Section 18A(6) of the said Act.
(2.) The assessee preferred an appeal against the order of assessment on various grounds challenging, inter alia, the following : (a) Disallowance of bad debts. (b) Disallowance of the losses following sale of shares. (c) Addition of amounts as income from undisclosed sources. (d) Disallowance of sums paid as donations and prospecting expenses.
(3.) A ground was also taken against imposition of penal interest under Section 18A(6) of the Act as follows : "That the Income-tax Officer went wrong in imposing a penal interest of Rs. 50,678.69.";