MODI RUBBER LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this writ petition a demand of Rs. 2,12,855 by way of interest has been challenged. The facts in a nutshell are as follows :

(2.) THE other relevant provision in Sub-clause (6) of Section 215 of the Act which was introduced some time in the year 1985 by the Taxation Laws (Amendment) Act, 1984, with effect from April 1, 1985. THE said provision of Section 215(6) reads as under :

(3.) MR. R. S. Agarwal arguing on behalf of the petitioner submitted that a reading of sections 139(8)(a) and 217(1) makes it abundantly clear that simple interest at the rate of fifteen per cent, per annum is payable from the date of furnishing of the return or where no return has been furnished from the date of completion of the regular assessment. In the instant case there was no valid return filed under Section 139 of the Act as such the question of payment of any interest from the date of furnishing of the return does not arid cannot arise. Similarly, it was further urged before me that Section 217(1) also speaks of where, on making the regular assessment, the Assessing Officer may charge simple interest at the rate of fifteen per cent, per annum from the first day of April next following the financial year in which the advance tax was payable in accordance with the said Sub-section (1) or Sub-section (2) up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in Sub-section (5) of Section 215.