Dipak Kumar Sen, J. - (1.) This reference arises out of the income-tax assessments of Ram Kumar Agarwalla & Bros. (P.) Ltd., Calcutta, in the assessment years 1957-58, 1958-59 and 1959-60. In each of the said years, the assessee failed to file any return of income within the time prescribed in Section 22(1) of the Indian I.T. Act, 1922. Notice under Section 22(2) of the Act directing the assessee to file a return had not been issued to the assessee for any of the said years. Later, pursuant to a notice under Section 148 of the I.T. Act, 1961, issued on the 17th March, 1966, the assessee filed returns for each of the said years on the 11th April, 1966. The ITO completed the assessments thereon and levied interest under Clause (iii) of the proviso to Section 139(1) of the I.T. Act, 1961.
(2.) Being aggrieved, the assessee preferred appeals to the AAC who upheld the decision of the ITO and confirmed the levy of interest. The said appeals were dismissed by a common order.
(3.) The assessee went up in further appeal to the Income-tax Appellate Tribunal. It was contended before the Tribunal that the assessments having been made by virtue of Section 297(2)(d)(ii) of the I.T. Act, 1961, only the procedure laid down by the Act of 1961 would govern the assessments. Levy of penal interest under prov. (iii) to Section 139(1) of the I.T. Act, 1961, could not be made.;