Charging provision for return-filing default cannot be extended beyond the statutory conditions expressly covered by the Act.

Interest under Section 12 of the Interest Act, 1974 was not leviable where the assessee filed the return within the time permitted in response to a notice under Section 10, because the case did not fall within the statutory defaults covered by the charging provision. The Court held that Section 12 applies only to failure to furnish a return after the due date under Section 7(1) or after the time allowed in a notice under Section 7(2), and it could not be extended to a situation where there was no delay in complying with the notice. The levy was therefore unsustainable and the assessee's liability to interest was negatived.

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Issues: Whether interest under Section 12 of the Interest Act, 1974 was leviable where the assessee furnished the return within the time allowed in response to a notice under Section 10 and there was no delay in complying with that notice.

Analysis: Section 12 applies to default in furnishing a return under Section 7(1) after the due date, or a return furnished in response to a notice under Section 7(2) after the time allowed in that notice. Where the assessing authority invokes Section 10 and the assessee files the return within the period permitted by the notice, the case does not fall within the language of Section 12. The authorities had proceeded on the footing that any non-filing from the original due date until actual filing attracted interest, but that approach was inconsistent with the statutory text. The Court held that the charging provision could not be extended beyond the circumstances expressly covered by the Act.

Conclusion: Interest under Section 12 was not leviable on the assessee, and the levy was unsustainable.

Final Conclusion: The appeals succeeded, the impugned orders were set aside, and the assessee's liability to interest was negatived.

Ratio Decidendi: Interest under a charging provision for default in filing a return cannot be levied unless the default falls squarely within the conditions expressly prescribed by the statute.

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