J.K. Ranka, J. - (1.) THIS reference under s. 256(2) of the IT Act, 1961 is directed against the order of the Income -tax Appellate Tribunal, Jaipur Bench, Jaipur (for short Tribunal') is relevant for the asst. yr. 1973 -74. Following question of law is required to be answered by this Court: "Whether on the facts and in the circumstances of the case the Tribunal was right in holding that the interest under ss. 139(8), 215 and 220(2) of the IT Act, 1961 could not be levied upon the assessee from the date of assessment order i.e. 23rd Sept., 1976 -
(2.) BRIEF facts, which can be noticed, are that the respondent -assessee furnished its return of income on 27th April, 1974 declaring total income at Rs. 1,58,484 which was revised on 5th Nov., 1974 to Rs. 2,57,680 but an assessment was made on a total income of Rs. 9,14,115 on 23rd July, 1976. The assessing authority (for short, "AO') issued demand notice as also other forms and charged interest under s. 139(8) and interest under s. 215 after specifically observing in the order as to levy of interest. The assessee preferred appeal and after the order of the AAC, the income was reduced to Rs. 2,41,120. The Revenue preferred an appeal before the Tribunal, and after the order of Tribunal the total income finally determined came to Rs. 4,29,120. The AO gave effect to the order of the Tribunal and by order dt. 16th Sept., 1980 enhanced tax, based on the order of the Tribunal so also charged interest under ss. 139(8), 215 and under s. 220(2) of IT Act. The assessee moved an application under s. 154 by agitating levy of interest, under ss. 139(8), 215 and 220(2) of the IT Act, which was rejected by the AO so also appeal by the CIT(A). However, the Tribunal vide its order dt. 15th Jan., 1988 allowed the appeal of the assessee by holding that interest, insofar as s. 220(2) is concerned, was not leviable. However, the Tribunal, in the impugned order, though referred to levy of interest under ss. 215, 139(8) and 220(2) but the finding of the Tribunal is with reference to interest under s. 220(2) of the IT Act only. No reason for deletion of the interest was assigned by Tribunal.
(3.) COUNSEL for the assessee raised a preliminary objection that the reference involves minimal tax/interest effect and need not be answered or rejected on account of various circulars of the CBDT which had laid down monetary limits in filing references/appeals and the present case falls in such parameters as the effect in the instant case is less than Rs. 1 lac and thus the reference application at the instance of the Revenue deserves to be dismissed.;