Interest under section 139(8) does not imply extension of time to file returns or bar wilful default prosecution.

Charging interest under section 139(8) of the Income-tax Act, 1961 does not, after the 1 April 1971 amendment to section 139, imply an extension of time to file the return. That interest levy by itself does not negate wilful default or bar prosecution under section 276CC. Whether the failure was wilful remains a question of fact, and the complaint was stated to contain prima facie averments of such default. The earlier ruling on the same point was treated as governing the petition, so the request to quash the prosecution failed.

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Issues: Whether the charging of interest under section 139(8) of the Income-tax Act, 1961 could be treated as an implied extension of time for filing the return so as to negate wilful default and quash the prosecution under section 276CC.

Analysis: After the amendment of section 139 with effect from 1 April 1971, mere levy of interest by the Income-tax Officer does not amount to an implied extension of time for filing the return. The question whether the default was wilful remains a question of fact, and the complaint contained prima facie averments of such default. The earlier decision on the same point was treated as governing the present petition.

Conclusion: The contention that interest under section 139(8) impliedly extended the time for filing the return was rejected, and the prayer to quash the prosecution failed.

Ratio Decidendi: Charging interest under section 139(8) does not, after the amendment of section 139 from 1 April 1971, imply extension of time to file the return or by itself exclude a prosecution for wilful failure to file the return within time.

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