No interest for delayed return filing where advance tax and TDS fully cover assessed tax liability.

Interest under section 139(8) of the Income-tax Act was not chargeable from a registered firm where advance tax and tax deducted at source fully covered the assessed tax liability, leaving no tax payable on assessment. The principle followed the Supreme Court ruling in Ganesh Dass Sreeram v. ITO, which treated full prepayment of tax as removing the basis for charging interest for delayed filing of the return. On that reasoning, the Tribunal's view that no interest was leviable was upheld, and the reference was answered in favour of the assessee.

---

---

Issues: Whether interest under section 139(8) of the Income-tax Act, 1961 was chargeable from a registered firm when, after giving credit for advance tax and tax deducted at source, no tax remained payable.

Analysis: The issue was covered by the Supreme Court decision in Ganesh Dass Sreeram v. ITO, which held that where advance tax covers the entire tax assessed, there is no question of charging interest for delayed filing of the return, even in the case of a registered firm. The Tribunal had followed the same principle in holding that no interest was leviable.

Conclusion: The Tribunal was correct in holding that no interest under section 139(8) was chargeable, and the reference was answered against the Revenue and in favour of the assessee.

Ratio Decidendi: Interest for late filing under section 139(8) is not chargeable where the advance tax and tax deducted at source fully cover the assessed tax liability.

---