Ajit K.Sengupta, J. - (1.) In this application under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1975-76, the following question of law has been referred to this court : "Whether, on the facts and in the circumstances of the case and on proper construction of law, the Income-tax Appellate Tribunal was right in holding that interest of Rs. 43,907 paid to the Income-tax Department was not allowable in computing the total income of the assessee ?"
(2.) The dispute relates to the claim for Rs. 43,007 paid by the assessee as interest to the Income-tax Department under Section 139 as a deduction in computing its total income. The Income-tax Officer referred to the case of River Valley Tea Co. (P.) Ltd. v. Agrl. ITO [1974] Tax LR 805 (Gauhati) and disallowed the claim. On appeal, the Commissioner of Income-tax (Appeals) further referred to Balmer Lawrie and Co. Ltd v. CIT [1960] 39 ITR 751 (Cal) and National Engineering Industries Ltd. v. CIT in which the Calcutta High Court had taken a similar view and confirmed the order of the Income-tax Officer.
(3.) The assessee came in second appeal to the Tribunal.;