Sen, J. - (1.) Pursuant to the directions of this court under Section 66(2) of the Indian Income-tax Act, 1922, the Tribunal in this reference has drawn up a statement of case and referred the following questions : "(1) Whether, on the facts and in the circumstances of the case, the demand notice dated the 11th December, 1964, for the sum of Rs. 12,573.03 was validly issued ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that an order under Section 35(1) of the Indian Income-tax Act, 1922, should have been passed by the Income-tax Officer before issuing the demand notice dated 11th December, 1964 ?"
(2.) The facts found and/or admitted in these proceedings are that Messrs. Kamani Industrial Rank Ltd., Calcutta (now known as Karnani Finance Enterprise Ltd.), the assesses, was assessed to income-tax under Section 23(3) of the Indian Income-tax Act, 1922, in the assessment year 1956-57, the relevant previous year whereof ended on the 31st December, 1955. In the assessment order it was recorded that interest would be charged under Section 18A(6) of the Act. Such interest was calculated and necessary entries were made in the Demand and Collection Register.
(3.) In the notice of demand sent to the assessee on the 20th August, 1960, the interest charged under Section 18A(6) was not included.;