Sen, J. - (1.) This reference under Section 256(1) of the Income-tax Act, 1961, is at the instance of the Commissioner of Income-tax, West Bengal-I, Calcutta. The respondent in these proceedings is Messrs. T.I. & M. Sales Ltd., impleaded as a representative assessee and is stated to represent a number of non-resident concerns. The assessment years involved are 1960-61 and 1961-62.
(2.) The facts found and/or admitted are shortly as follows : By an order passed in November, 1964, the respondent was treated as the representative assessee in respect of ten non-resident concerns, for the assessment years 1960-61 and 1961-62 and assessed as such. Appeals were preferred by the assessee to the Appellate Assistant Commissioner, against the decision to treat the assessee as statutory agent of the said non-residents under Section 163(1) of the Income-tax Act, 1961, and also against the quantum of the assessments. The Appellate Assistant Commissioner disposed of the appeals by a consolidated order.
(3.) One of the points agitated before the Appellate Assistant Commissioner was whether the representative assessee was liable to pay interest under Section 217(1) of the Income-tax Act, 1961, for non-payment of advance tax in accordance with the provisions of Section 212(3) of the said Act. The Appellate Assistant Commissioner came to the conclusion that as the Income-tax Act, 1961, became law only on the 1st April, 1962, it did not confer any authority for levying interest for omission to file an estimate and pay advance tax during the financial years 1959-60 and 1960-61. Accordingly, he remitted the payment of such interest.;