Judgment

KAPUR, J. : This is an appeal pursuant to a certificate of the High Court of Bombay under S. 66A(2) of the Indian Income-tax Act (hereinafter called Act ). For the year of assessment 1949-50 the respondent was assessed to a sum of Rs. 1,80,646-14-0 as income-tax and super-tax on June 2, 1954. A notice of demand under S. 29 of the Act was served on the respondent to pay that amount on or before July 17, 1954. On his application the respondent was allowed to pay by instalments. The last instalment of Rs. 30,646,14-0 was payable on or before March 20, 1955. As there was a default in the payment of this instalment the Income-tax Officer on March 31, 1915, imposed a penalty of Rs. 3,000 under S. 46(1) of the Act. On April 20, 1955 the respondent filed an appeal to the Appellate Assistant Commissioner but by that date the last instalment had not been paid and it was paid on May 16, 1955. The Income-tax Officer raised a preliminary objection before the Appellate Assistant Commissioner that the appeal was not competent because the last instalment of the tax had not been paid. This was upheld by the Appellate Assistant Commissioner. Against this order the respondent took an appeal