- (1.) THE assessee is an HUF and the assessment year under reference is 1967-68 of which the relevant previous year ended on 31st March, 1967. In the assessment order made by the ITO for this assessment year on 28th February, 1972, he charged penal interest amounting to Rs. 1,992 under Section 139 (1) of the I. T. Act (hereinafter referred to as " the Act " ). The interest so charged was included in the notice of demand served on the assessee under Section 156 of the Act.
(2.) THE assessee preferred an appeal to the AAC contending that the levy of penal interest was illegal and was not warranted by the facts of the case. The AAC dismissed the appeal in limine, vide his order dated 8th August, 1972, on the short ground that no appeal lay on the point. The AAC did not go into the merits of the assessee's appeal.
(3.) THE assessee filed an appeal before the Income-tax Appellate Tribunal, Delhi Bench (B) (hereinafter referred to as " the Tribunal " ). The Tribunal, vide its order dated the 19th December, 1973, accepted the appeal of the assessee holding that the appeal filed by the assessee was competent.;