Commissioner Of Income Tax, Andhra Pradesh v. M. Chandra Sekhar

COMMISSIONER OF INCOME TAX,ANDHRA PRADESH M. CHANDRA SEKHAR December 4, 1984 [V.D. TULZAPURKAR AND R.S. PATHAK, JJ.J Income Tax Act, 1961. Section 139(1) read with proviso-In a case where Income Tax Officer levies interest on income tax return.filed after the date prescribed by sub-s.(1) of s.139-whether a valid presumption can be raised that lucome Tax Officer extended time for filing voluntary return under the proviso to Sub. s.(/)ofs.139. Section 21 l(J)(a)-Scope of- Whether penalty can be levied on incom~ tax return filed aft~r the date prescribed by s.139(1) but on which Income Tax Officer has levied interest under c/.(iii) of the proviso. Held-No. The time allowed by Income Tax Officer under proviso to Sub-s.(1) of s. 139 for filing return falls within the expression "the time allowed'' in cl.(a) of Sub-s.(l) ofs.271. Sub·s.(I) of s.139 of the Income Ta. Act, 1961 prescribes the period within which a volu~tary income tax return must be filed. When an assessee cannot file a return within the prescribed period, the proviso to Sub·s.O) of s.139 entitles the assessee to make an application for extension of time in the prescribed manner and the form stating the reasons on which the extension of time is sought. On such an applk.ation being made, the Income Tax Officer is empowered to extend the per'.od for filing the income tax return subject to payment of interest on the amount of tax payable. The respgndent assessee filed voluntary income tax returns for some assessment years after the date prescribed by Sub-s.(l) of s.139 of the Income Tax Act, 1961. The Income Tax Officer treated the asses.sec as being in default and imposed penalties under cl. (a) of Sub-s.(I) of s.271 of the Act. In appeal before the Appellate Assistant Commissioner of Income Tax the assessee con .. tended that since interest had been levied under c1.(iii) of the proviso to Sub·s. (I) of s.139, no question arose of imposing a penalty. The Appellate Assistant Commissioner reje<:ted the contention. In second appeal the Income Tax Appellate Tribunal held that as the Income Tax Officer had levied interest upto the-date of the filing of the returns, it must be presumed that the Income Tax Officer had extended the time for filing the returns after satisfying himself that it was a case for extension or time. The Appellate Tribunal allowed the appeals and cancelled the penalties. On a reference being made, the High Court held that the Appellate Tribunal was justified in relying upon the presumption. Hence these appeals by the R•venue. The Revenue contended that there was 216 SUPREME COURT REPORTS no material to warrant the finding that an application had made by the assessee for extension of time and that upon such application the Income Tax Officer extended the time. The Revenue urged that the imposition of interest does not warrant the assumption that an application for extension of time was made by the assessee and allowed by the Income Tax Officer. Dismissing the appeals, AVERT ATTRA, SET TAT >(4 fearaz, 1984)-| (saratfxafa So Sto FAAAVHT HIT HTTo Yo Woe) arene aferfaae, 1961 (1961.81 43) —aret 139(1)—-256(1) ate.271 (1) ()—faacinat aga aa Fo aaT—agtat—araet faacinat erga wea A ge faaeg Sararaax afeardt grat faite at eaftrany wraae Te Tzafer afereifaa feat wat ate faatiedt arene aazag eaoreare ae aatay a ar —areaz afeerdtfaatfedt gret wage AT AAT TT TAT TAT BT AHTITA zlma az ewer fratait Gea Hwa F fae ana a gfe Hxalae ae wh anfer Taadla wat we aaa aaifs alafeatwmratafa ‘agate ana’ gar & site. sae far anfes faaasgaa faeger at ara aah — geadtt-frattedt ot tad arfirs aqws aed FH arftarzqT | gat athe 2 saree, 1963 at fate at 1959-60,1960-61,1961-62 aitz 1962-63 # fau soar frachrat grea at 1 fratoray 1963-64 % Faw faacot adie 2 aaea, 1964 aT BIE aT TE IFfaaefinat orger wt F faaea B are arene afare & rateday sofa atat att Ta TK aTTHT aAfaftaA 1961 et are 271at gaara (1) ¥ aus (aw) & aeite arferat afratra at fratfeat % aera arrat agar (atta) F ame attaHag efter& fe a fx fracinat gana rate ayaaig afafrae st ater 139:sqarer (4) are fated arafata at aarita & are are ag ge attoR gee area HE of, cafe ag fratot afer ar art ag Befarg aelan aged (adie) Tt faaifeat ar acter aaeae BT chyarat atta afreen ate sea array tae afafraticr frafir ara at ofeheefaal er tar ee alg at afer vanevita aay 572 o1 RAT Ie Goaay eararag F atte at Ts 1 ag ata fate Faseit & arafaag, aatq (1) eat wae H aeat ate afefeafeat agar atte aface at ag frond frarear earatfae ar fie sort at wafer wear ag state atat a fe araat after stagaaa at warat fe arrax farce weg aw Hfaare F faeTater BT at, AT (2) sat aT H Tat ate ofefeafaat ¥agate afereo er are 271(1)(%)®avatar sande afeeattae wea eaaifaa at? atta ahs wer By,aoe :afafaatica—araat afafraa, 1961at are139 at oq-arr (1), stare (2) ate sear (4) F aetar ay aver araY orate afrard faaciy wea wt ar aaa eae fae waaaTae tar aaa @ fer ora oz fraihedt sats ar Aare HUT TT aahSrfaethe t aega: ara 139 ave (i) ala oTSeyET Ae wT 27) HY stare (1) Rave (s) F ata metB sagen Baal vated} F far facta wea wet F gefaaea & far aaat ate & are sare Ft a fa raat afar FTfaactrat Giga BU st ade aH sat varala Hr featAT, Fafac ag soar wave dt at art arian fe aaat afrard 4Ra BT RT ATT A aararegT HTT H Tear faaetqar grea HVT FHana & afe at ot fe agana & afe eer aT ATTA AT | BIATTToS| qeae: ee ara ot aranfcr ot fe earfew ap carfermed Baeat &caet afeardt FT sat ae Tare wet afer gay sfaaatt agatfan Ufa & art adert ar freer fats1 (Fe 2). drat afeecr aT Sa STMT aT agate sat waifatay fa masta aa frafae wo & faq ae g ale gata ae fe agsqarent vasagt al oat arfgefis aan afirardt & fale|are aaare me aera ae aaa A afs at ot aaife azar aaaafeardt samt varfer vat ae aaat att ar ofefeafaal F arg aftarea saaeiavat a1 (FT 3)eeofeasoat faacot Farrer F arer139 a era(1)ayecprarata fafaa wedt 2 freak ates tat faartoat aa A aeat att atfat i wat fafea ararafa & fax arg faacot area aat at andlgt, agi fratfedt farce i at at arta aga& faw arrax afaaret at ted eer aT svar 2| aae af. 216 HELD : It cannot be disputed that the Income Tax Officer could extend the date for furnishing the return in respect of each assessment year. It was open to him to do so under the statute, and he was entitled to charge interest only on the basis that the extended period feH beyond September 30 or December 31, as the case may be. In the ordinary_ course of things, the Income Tax Officer could have extended the date only upon being satisfied ~that there was good reason for doing so, and that would have been on grounds pleaded by the assessee. We consider that in the circumstances of this case a presumption could validly be raised that all that was done. No attempt was made by the Revenue to show that the Income Tax Officer acted arbitrarily and contrary to the procedure envisaged by the statute. The Appella:e Tribunal considered the matter carefully and found circumstances on the record in favour of raising the presumption. The High Court approved of the approach adopted by the Appellate Tribunal and did not find it contrary to law. We do not see any reason to differ from the opinion expressed by the High Court. [221E·G] Additio"nal Commis~ioner of Income Tax, Gujarat v. Santosh Industries, (1974] 93 l.T.R. 563, M. Nagappa and Others v. Income Tax Officer, Central Circle·!, Bangalore and Others, [1975] 99 I.T.R. 32, Poorna Biscuit Factory v. Commissioner of lnconie Tax, A.P., l1975] 99 I.T.R. 41, Commissioner of lncon1e Tax, Orissav Gangaram Chapn/ia, [1976] 103 l.T.R. 613, Metal India Products v. Commissioner of Income Tax, Lucknow, [1978] 113 I.T.R. 830 and Comntis-.. sioner of Income Tax, Punjab v. Kula Valley Transport Co. P. Ltd., [1970] 77 I.T.R. 518. not applicable. Penalty under cl.(a) of Sub-s. (I) of s.271 of the Income Tax Act is attracted if the Income Tax Officer is satisfied that the assessee as, without reasonable cause, failed to furnish the returns "within the time allowed'". The time alJowed for furnishing a voluntary return is the time specified in Sub-s.(1) of s:139. The proviso so that sub.section empowers the Income Tax Officer to extend the date for furnishing the return. When the Income Tax Officer extends the date, he does so in the exercise of authority conferred by the statute, and the additional time available to the assessee consequent upon such extension is, for all relevant purposes, of the same character and as effective as the statutory period specifically enacted by Parliament. For the purpose of furnishing a return it constitutes an integral part of the time allowed for furnishing a return. Therefore, where the Income TaK Officer extends the date, then all the time upto that date is the time allowed for furnishing the return. The additional period consequent upon such extension falls within the expression uthe time allowed" in cl.(a) of Sub-s.(I) of s.271. That being so, the conclusion must follow that the penalty provision does not come into play at all. [223C-G] CIVIL APPELLATE JURISDIC1ION : Civil Appeal Nos. 1299 to 1303 of 1973 From the Judgment and Order dated the 3rd February, 1972 of the Andhra Pradesh High Court in c~se referred No. 61 of 1970 S. T. Desai, M. N. Tandon and Miss. A. Subhashini for the Appellant. A. Subba Rao, for the respondent. The Judgment of the Court was delivered by PATHAK, J. These appeals by special leave are directec against the judgment of the High Court of Andhra Pradesh disposing of a reference under Sub-s. (I) of s. 256 of the Income-tax Act, 1961 on the following questions of law : are aaa fatargare arta agit ® fac amet S41 are 139 at>SITATT (1) F TGR H Gs(i)F genta aA aves ara F are|af arg carat carfea few fant fate at &30 faarae amTe AT THAT J TAT TTR F Ges (ii) F senia at ay aay|4 ararafa arg at carat varfea fae far edt gare frac agN93] fearac am age ot aad 21 fra oat ararafe |e(i)at (ii) F sfeafar areal & ct agg set 2, zat ave ( iii)F,ait fratfadt sarfeafa frater ag1 aga ar aaa aewaid,ae me frac feel weal tr ww set at HC arte HT AT an, daa Ge ada ata He az st cHA atx az Ma fra- gztat ter aret at athe oH eae dara awafare arat 21 gat.| SHTR ATT 139 BY STITT (2) H arehet Ger at ae farce aay SHTR ATT 139 BY STITT (2) H arehet Ger at ae farce aay ATT 139 BY STITT (2) H arehet Ger at ae farce aay 139 BY STITT (2) H arehet Ger at ae farce aay BY STITT (2) H arehet Ger at ae farce aay STITT (2) H arehet Ger at ae farce aay (2) H arehet Ger at ae farce aay H arehet Ger at ae farce aay arehet Ger at ae farce aay Ger at ae farce aay at ae farce aay ae farce aay farce aay aay.OR,sega arent faactrat afrareh& arace at are F sfeafar 139 at stare ofthat (1) ® Fee ate dar asgar—=& aemata faacolt a wer at arte agit at afar 8 carts wet—Pratfeait aver 139 @f saarer (1) at sree (2) & ata oFfaq ay aaa & silat faacoht ae adi wat a agi ag AE|aefratem aL, forae fay ort faaxtit & og arated aver 139 8, at aarfar sqerer &(4) are ala are faaizr ga fatty awe:HC ar & cee Peet ot ana feet qdadt ad & fae frac agHC AHA FA Ga za Hoary sr dara waa arahga are|.139 # stare (1) & TegH que (iii)e rae aay. st aT ST ATT 139 St sTaTer (8) ae 28 ata, 1963 3 fea afatran,.1963 arer area: earita at ae et) ay ag Moor at ae & fe:are 139 Ht eT (1) Frege aus (iii) F feet ara &.at ge at arrat afsard efrra fafa carat atx ofcheafaay Faver 139 & faedth soaer & aretha fist ex arr ada cast RtaH BU aT afer wet F fw caaraar(zr 4)ot POSa,3 8}raf-_—po-_|~|| | SHTR ATT 139 BY STITT (2) H arehet Ger at ae farce aay SHTR ATT 139 BY STITT (2) H arehet Ger at ae farce aay ATT 139 BY STITT (2) H arehet Ger at ae farce aay 139 BY STITT (2) H arehet Ger at ae farce aay BY STITT (2) H arehet Ger at ae farce aay STITT (2) H arehet Ger at ae farce aay (2) H arehet Ger at ae farce aay H arehet Ger at ae farce aay arehet Ger at ae farce aay Ger at ae farce aay at ae farce aay ae farce aay farce aay aay _.pO:Poy yope|:oe raven frat wget Hea & fae agar THT ate 139 at.sree (1) a fafatece aaa dt) se soared aT GG ATRL ,afaaret at feat te at at arte agate far aaa ae@ | dag atearaa afatratite are ag arta fatafzce et & fireeaaeaaC at THT fara am FT farcot Tat wey savaat & arte greet agax dt at artMhe afer weq ah ak aq ft caaea tt a arTeT afaart arte agra & at aeaaa ger Haar Mifare H eTter sea sale gfe RLofcoraered fastfedt at caeea afafar aaa sat ware Faitqaina sete & fare gta Bate get ware erat Mat 2, fre fe dag are fafafese wr & afafrafafe maa arora % dag are fafafese wr & afafrafafe maa arora % are fafafese wr & afafrafafe maa arora % fafafese wr & afafrafafe maa arora % wr & afafrafafe maa arora % & afafrafafe maa arora % afafrafafe maa arora % maa arora % arora %fae grat 81 faacott ta wet B sata Se fr ag frail Fraot & fae aqara ana ar afar sin Aa Ri eafay, wa aaTafrard atte agit 3, aa sa ade ae ar aaaaa farateee & far agara ana gia eter agfe & oheoraered aftRea ararafis are 271 at sree (1) Revs(F) Fogaay”? afaeata & arate ard. iter aa Tag freed aa&t fawaar aifeefe afer faves grea Pegaamp adae@1 (42 10):, ware fe dag are fafafese wr & afafrafafe maa arora % dag are fafafese wr & afafrafafe maa arora % are fafafese wr & afafrafafe maa arora % fafafese wr & afafrafafe maa arora % wr & afafrafafe maa arora % & afafrafafe maa arora % afafrafafe maa arora % maa arora % arora % gifeer Foi !. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in concluding that the charging of interest indicated that the Income-tax Officer was satisfied that there was sufficient cause for delay in filing the return of income? 2. Whether on the facts and in the circumstances of the case, the Tribunal was justified in cancelling the penalties levied under section 271 (I) (a) ? The respondent assessee is a partner in the firm, M/s Manik Rao & Brothers. He filed voluntary returns for the assessment years 1959-6(1, 1960-61, 1961-62 and 1962-63, all on August 2, 1963. The return for the assessment year 1963-64 was filed on August 2, 1964. On account of the delay in filing the returns the Income Tax Officer treated the assessee as being in default and imposed penalties under cl. (2) of Sub-s. (I) of s. 271 of the Act. In appeal before the Appellate Assistant Commissioner of Income Tax the assessee contended that as the returns had been furnished before the end of four years from the end of the relevant assessment years, that is to say, the period prescribed by Suh-s. (4) of s. 139 of the Act, he was not liable to any penalty. It was also pointed out by the assessee that interest had been levied under clause (iii) of the proviso to Sub-s. (I) of s. 139 and, therefore, no question arose of imposing a penalty. Both contentions were rejected by the (1985J 2 S.C.R. SUPRBME COURT REPORTS Appellate Assistant Commissioner. In second appeal before the Income Tax Appellate Tribunal the assessee raised substantially the same contentions. The Appellate Tribunal took the view that in cases falling under Sub-s. (!), Sub-s. (2) and Sub-s. (4) of s. 139 the Income Tax Officer was empowered to grant time for filing a return. and on such time being granted the assessee would be liable to pay interest. It pointed out that the assessee had in fact given his reasons for the delay in filing the returns '"both for the purpose of levy of interest under cl. (!)of s. 139 and also the levy of penalty under cl. (a) of Sub-s. (!) of s. 271 ". It held that as the Income Tax Officer had levied interest upto the date of the filing of the returns it must be presumed that the Income Tax Officer had extended the time for filing the returns after satisfying himself that it was a case for extension of time. The presumption was foUllded in the principkthat an Officer entrusted with a judicial or quasi· judicial duty must be presumed to have discharged his duties in a proper and bona fide manner. The Appellate Tribunal allowed the appeals and cancelled the penalties. At the instance of the Commissioner of Income Tax, the Appellate Tribunal made a reference to the High Court of Andhra Pradesh. The High Court held that the Appellate Tribunal was justified in relying upon the presumption that official acts had been regularly performed, and that therefore it must be presumed that the Income Tax Officer had extended the time upon grounds made out by the assessee, because otherwise the Income Tax Officer could not have charged interest. Holding that no penalty was leviable in the circumstances, the High Court answered the reference in favour of the assessee. |qtae[1978](1978) 113 ago cto Ato 830:;|"der gftegr ewre TATA araae ayaa, TAA7|:}[1976](1976) 103 ago dto AIXo 613:YSf|MABE AYA, SHAT ATT TATE aAANFAAT;7,[1975] (1975) 99 ago gto aTxo AI :.|oy:gat faege Gael SATA ATHT aTART, ATT TeaaT1975!(1975) 99 aTzo fo AIX 32:|||amo ANT BIT eT TATA TAHT afearel, FeaT|.afaa-1, ATT att sea|T4[1974](1974) 93aTGo fo ato 563:.,|ATT AATTT THT, YALA TATA SAT gree;7—|[1970] (1970) 77 ato fo ato S18:, ataat argent, Maret TATA HY set state weetOSoe«sede fafats3Njfafa ariel afeatieat:= 1979ait fafa adit to 1299-:1303 (gato eto)..1970 & fatase raat do 61 A ae Tee Seq MTATAT:’& arte 3 Grad, 1972 ate fro ak areas frees tt Te HAST MAI, AT TAT. To THo Bex aT [rato qtem] atarat a att Yaa} TH Ao Bas att uqo Ute eeSeTaEAT To Turf|seatay aTAUo MeaT oe:.1ON,|Aoe-po- ravaTaa at fropeararfagtt ato wa. Tene feat, varatfarafs wes—: Vata srrat afahrre, 1961 a are 256 at scare(1) ® aete fag ay fade ar farerer wea Te are a setrarerfair& faeg fae gota Sat at aE f1% atafafa & freafafge set@arafeaFo ooL war ara aeat ate ofefeafaat & aver aeattta afer afar eat at ag ag softe farsa frre azraat saratfaa fe araee at afrert fe easeaT Ue Taras a Tat atfe mane feat area aa Fgu fara & faust are ar 2 a2, aaT arma Haeal ate ofefegfat B® ara qe-afere ar are 271 (1) (%) ¥ aeite santa afeaat aroyTE geatt-fyatedt BTA warathaaart tad ? artis cra wee qed FH eaitarcaT| Bat arGe 2 anea, 1963 at Frater ae 1959-60, 1960-61ate 1962-63 & far eazoarfaaefnat gree atfratcr at4963-64 & fare faacoit arate 2 ame, 19641 Gee Aas,farina pret wet F gu faare Faron aac afaart FFralfzdtay cafaaay arat att sa oe afafaan at are 271ait.agar (1) F aos (H) F aela akaat afedtea at1 faaifeeta atta Fagan HaHt agar (atta) F awe ae acta ef feffmfaarfnat adaa fratzorad safe afafiam a arr 139 4|RCCIES (4) are fafea srarafa at aarita Sarat gtaa vee gree at we at, safae ag feet xy afer wr art aga|faaffeett aret ag at aaa war far eRe ears are 139 a overt+(1) B TegE F ave (iit) Fata sqadia feat war, gafatarfea afaafia wer aT BQ wetgt vaya. wl grat) wary.”aga (ater)a dat cele aaa at dh faatfeetA aa ater afiracor S omer fetta atte Fane: ad acta Fy afiracor S omer fetta atte Fane: ad acta Fy S omer fetta atte Fane: ad acta Fy omer fetta atte Fane: ad acta Fy fetta atte Fane: ad acta Fy atte Fane: ad acta Fy Fane: ad acta Fy ad acta Fy acta Fy Fyatta afieca % ag na eae Frat fe arer 139 Ht sree (1), \=oo _Poof|a Pe ater afiracor S omer fetta atte Fane: ad acta Fy afiracor S omer fetta atte Fane: ad acta Fy S omer fetta atte Fane: ad acta Fy omer fetta atte Fane: ad acta Fy fetta atte Fane: ad acta Fy atte Fane: ad acta Fy Fane: ad acta Fy ad acta Fy acta Fy Fy Braet (2) afte srarer (4) ¥ areftet ary are aT FH mrtHz afar farcot area eet ar ana eae fag amar at aeRe aaafar ora oe faatfedh sare aT aas aT aT at ergat agaaaran fr faeifedtF age: are 439 F ave(1)®areirt sare F Tama AT ser 271 BT era (1)Fas(F) aetat anfea & caren F aiat catered anfea & caren F aiat catered & caren F aiat catered caren F aiat catered F aiat catered aiat catered cateredfae faafat oremer Hee frag F fag aal ate a are aaysat afretfea far fe Hf araae afeare 4 faachrat wea wet atarta am ana saqdia ax fear at, gafay ag stereo aeaat srat arfen fr arcane aferardt teat aT ge ae A aaywe & orare fracinagt orga wetana H afe at at ate agfe ag ane H afe Hey Bl ATAAT AT| STAC BEIT: aaa TT-arenfer ot fis carfrn at aarfraaes wdeat & wea afarad aaTaa 7 Tract Het afer fe sat sera aquifas Ge |, aoa ar Praga fear g ar Praga fear g Praga fear g fear g g1 atte afrrena adta wea aTtf ate arftaat te at|._ To appreciate the true scope of the questions referred, it is necessary to understand the scheme enacted in s. 139 of the Income· tax Act, 1961. Broadly, the scheme envisages a voluntary return by the assessee under Sub-s. (1) of s. 139, a return consequent upon a notice by the Jncome Tax Officer under Sub-:-s. (2) of s. 139 and a return in the circumstances mentioned in Sub-s. (4) of s. 139. We are not concerned here with a return under Sub-s. (3) of s. 139 disclosing a loss nor are we concerned with a revised return under Sub-s. (5) of s. 139. In the case of a voluntary return, Sub-s. (l) of s. 139 prescribes the period within which such returns must be filed. Where no return can be filed within the prescribed period, the assessee is entitled to apply to the Income Tax Officer fur extend-ing the date for furnishing the return. The Income Tax Officer is empowered to extend the date in his discretion. In a case covered by cl. (i) of the proviso to Subs. (1) of s. 139 the period may be extended upto September 30 of the assessment year without charging any interest, and in a case covered by cl. (ii) of the proviso the period may be extended upto December 31 of the assessment year similarly without charging any interest. But where the period is extended beyond the dates mentioned in clauses (i) and (ii), then under cl. (iii), the assessee is liable to pay interest from October 1 or January l, as the case may be, of the assessment year to the date of the furnishing of the return on the amount of tax payable on the total income reduced by the advance tax paid and any tax deducted at source. Similarly, in the case of a return furnished under Sub-s. (2) of s. 139 the Income Tax Officer has power to extend the date for furnishing the return subject to payment of interest· in the circumstances set forth in relation to voluntary returns under Sub-s. (I) of s. 139. Where, however, the assessee does tiot furnish a return within the time allowed to him under Sub-s. (1) or Sub-s. (2) of s. 139 then before any assessment is made he may, under Sub-s (4) of s. 139, furnish a return for any previous year at any time before the end of four assessment years from the end of the assessment year to which the return relates, and in that event the provisions of Sub-cl. (iii) of the proviso to Sub-s. (1) of s. 139 relating to payment of interest would apply to the case. Sub-s. (8) of s. 139 was inserted by the Finance Act, 1963 with effect from April 28, 1963. It declared that notwithstanding anything con-tained in cl. (iii) of the proviso to Sub-s. (I} of s. 139, it was open to the Income Tax Officer, in certain prescribed cases and circum-stances, to reduce or waive the interest payable by any person under any provision of s. 139. It may be noted that the language of Sub-s. (8) of s. 139 suffered material change with effect from April 1, 1971. Now, it will be apparent that delay in filing a return of income results in the postponement of payment of tax by the assessee resulting in the State being deprived of a corresponding amount of revenue for the period of the delay. It seems that in order to com-pensate for the Joss so occasioned Parliament enacted the provision for payment of interest. It is apparent also from the language of cl. (iii) of the proviso that interest becomes payable only upon the Income Tax Officer acting on an application made by the assessee for the purpose and extending the date for furnishing the return. At the relevant time the proviso to Sub -s. (!)of s. 139 read : -- "Provided that on an application made in the prescrib-ed manner, the Income Tax Officer may, in his discretion, extend the date for furnishing the return- (ii) (iii) —& aetat anfea & caren F aiat catered anfea & caren F aiat catered & caren F aiat catered caren F aiat catered F aiat catered aiat catered catered art aoa ar Praga fear g ar Praga fear g Praga fear g fear g g |year3. araaT angst at oT Te aaa afc A are soa eraray ay fazer fear1 sea aravay 4-92 afufaatterfear fe acter afrarey ar ge Sra BT aaaea Satcatatfaear fe mreate wea frafaa we a fag ae g ate ag fe gafau ag-| Saarear Hae et at orett arfar fe aaa afsard a fraicheEIT THAT TY araret Te HT a ate at ah, wale aera arTAHTaferard caret serie vat Bt ema aT1 ag afafratfer wee gefe aq ofekeataat F arg vt anfer vaugoita vat ft, sea ereqrerr.8 free at sax faatfedt & cer F feara _4. fafece seat at cat offic ar qeaiaa aed & fire arz-‘ex afafray, 1961 et arer.139 4 afafaafya cata at amar.Oo= aTaUTS g Ae AYE Te tate A are 139 at Soarer (1)& atawefratfeat are crema facetToit(at veqatacor) argeata 8—Tet faa. Ly AT are 139 at srare (2) F ata aaa afeard are|}difer fae wrt & oformereq faacot dtF ate ara 139 a-:are (4) # sfeafiar ofefeafeat F faacit Batei agi acer_aay TU 139 at stare (3) ¥ seta aft aaa aret faercolt|oe& aa g ote a Gt gare aeaea ater 139 at srarer (5) F altane TART ATA, AKT TST To UR Mee ae )grtfara facet 321 Sewer ech e ae H arr 139 at->sree (1) ae ararafr fatga wedt & frahk vax tatfaachinayaay gt Blea Bt ot arfed| wat false ararafe’s vat AE_.frac Great Tal oT AKT A, zat faatfedt faaeoit ter ace atSKaearaet agit afsared & fare aot areae fazarqare afirerdt ata at aren qt & eet fax at amar ewart 21 2ORT 139 FT SoaTer (1) F TegH Fe ave (i)F aaa at ayPFTeprerrafiz ag error wafer fac faa Frater at30.||FATAL TH TE TT AHA ye Tar TEER H aE(ii) F arate)att aver erat & arerrafs Mrs Ft saraz safer faa faa, sir|Ware, frateor|sravafa @vs (i) ae (ii) ¥ sfeafas artet & ot age ot|poat & 31 fearaz am aang ot aadt F 1 Peg et}— &Laaqatar Fat ars | (iii) saad F an aha aaiq fruifett feat te anftafe ae at fata ade az dea a»afer oz ale Sle Tt are ae feet HT aT BATE ga mT a-HQT ae a waa oy, feat ta ae at ata az, aT aTaHAT HWA HT aa Jt gat THT ger 139 sr sare (2) Fateen4ae at 1g faa Faas H, araKe afar st are 139 a va-TRG) areiter Beat sega faaefnat ® qeaeq H sfeafad afe-!pefeafaat.# eqrer & earrh areata feat te Hea at arte gentat afar & 1 tari set fraffedd are 139 at seater (1) are'are (2) % sett va fag ag aaa B vtat frat te ay azar&, Fat ag ME At Frater fee ars & gs are 139 at srarer (4)|* ola va frateo ae at, free faacolt arated 2, anitaae ATX frag astgt sae cae feet tt ane feet dad=ag & faw faacoit te ae aaase att ga aera soe at dara| ¥BUF A Arafat ae 139 Ht sraTe (1) F Te_H ® que. (iii)ae2Saar are FT aT StL arer 139 at vere (8) ade 28aia, 1963 & faa afefraa, 1963 era aeatearioa at ae a:wat ag ater at we x fe are 139 at srarer (1) & ceaH HRaus (iii)Peet areBHA ge st aaa afrare afera fatsrpocarait afteafefeafeat & are 139% fret soaeerait Pettafta aren aaa eats at ae et oT oferta aa R fw cade;gt ge ara oe cara fear at aaa é fe are 139 at yrarer (8) at apet H arte 1 asta, 1971 Barfeas ofeade at aeL 5. ara ag ara eave anit fas ary at faarcort TEA wea F au fraca % sferraeaes fraffedt darer ex eT wart yeast at4arat & faa aferrmeres use Fagenat wenfate % far waaa aaeareth tan & afar at arat 21 ag vata diate tan & afar at arat 21 ag