SABYASACHI MUKHARJI, J.

( 1 ) THIS reference relates to the assessment for the assessment year 1961-62. The assessee is a firm, M/s. Lalit Prasad Rohini Kumar. The assessee filed return of income on 7th August, 1963, disclosing an income of Rs. 68,046. The ITO, following the finding reached in the earlier year's assessment, held that the income which was declared by the assessee firm actually belonged to a HUF, of which Sri Ram Narayan Agarwalla was the karta at the material times. He, however, made an assessment on the assessee as a protective measure, and in doing so, he also charged interest under Section 215 of the I. T. Act, 1961. In the assessment order, he observed, inter alia, as follows:"charge interest under Section 18a (8) as the assessee did not file an estimate voluntarily under Section 18a (3), being a person not hitherto assessed. Issue penalty notices (i) for failure to furnish the return of income within the time prescribed under Section 22 (1), (ii) for failure to furnish estimate under Section 18a (3) and pay tax in accordance therewith. "

( 2 ) THE assessee went up in appeal before the AAC. In the appeal, two contentions were raised. The first was that the ITO

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