Dipak Kumar Sen, J. - (1.) Sudhinendra Nath Patra, the petitioner herein, was assessed to income-tax in the assessment year 1969-70, on income derived from house property, business in gold and gold ornaments, interest, dividend and commission earned as a life insurance agent. For the said assessment year the petitioner had paid an advance tax of Rs. 600 on an estimated total income of Rs. 9,000 under Section 212(1) of the I.T. Act, 1961.
(2.) The petitioner filed his return of income on or about the 19th September, 1969, and the assessment was completed on the 29th March, 1972, on a total income determined at Rs. 3,37,770 in which Rs. 2,46,148 was added as deemed income under Section 69A of the I.T. Act, 1961. On successive appeals preferred before the AAC and the Tribunal, the petitioner obtained relief and his total income for the said assessment year was finally determined at Rs. 1,56,170.
(3.) As the advance tax paid by the petitioner fell short of the actual tax payable by the prescribed percentage, the ITO levied interest on unpaid tax under Section 215 of the I.T. Act, 1961. Being aggrieved thereby the petitioner made an application before the ITO on the 28th April, 1975, under Section 215(4} of the said Act read with Rule 40 of the I.T. Rules, 1962, for waiver and/or reduction of such interest. It was contended by the petitioner that it was not possible for him to anticipate the additions which were made under Section 69A of the said Act by way of deemed income. It was further contended that the petitioner should not be held liable to pay interest for the delay of 2 1/2 years in completing the assessment.;