G.K. Govinda Bhat, C.J.—The Income Tax Appellate Tribunal, Bangalore Bench, has stated a case and referred the following question law, under section 256(1) of the Income Tax Act, 1961 (hereinafter called "the Act"), for the opinion of this court :

"Whether, on the facts and in the circumstances of the case the Tribunal was right in holding that the Additional Commissioner of Income Tax was precluded from directing the Income Tax Officer under section 263 of the Act to levy interest under section 139(1)(iii) ?"

2. The assessment relates to the year 1964-65. The assessee, which is a firm, filed a return of its income for the assessment year in question on April 1, 1966, showing a total income of Rs. 97,469. Subsequently, on February 5, 1968, it filed a revised return declaring a total income of Rs. 1,61,375, which included business income of Rs. 81,757. The return of income had to be filed by December 31, 1964, under section 139(1) of the Act. However, since a notice under section 139(2) had been served, it was due on August 28, 1964. An application in Form No. 6 dated December 31, 1964, was filed before the Income Tax Officer on January 2, 1965, praying for time till March 31,