JUDGMENT
Chinnappa Reddy, J.
1. The assessee submitted his returns of income beyond the period prescribed by Section 139(1) of the Income-fax Act, 1961. The Income-tax Officer accepted the returns and proceeded with the
assess-merit. He charged interest under the third clause of the proviso to
Section 139(1) of the Act. He also levied penalty under Section 271(1)(a) of
the Act on the ground that the assessee had failed without reasonable
cause to furnish the returns of income which he was required to furnish
under Section 139(1). Under the third clause of the proviso to Section 139(1)
the Income-tax Officer is empowered, in his discretion, on an application by
the assessee to extend the date for furnishing a return of income up to any
period, in which case interest at 6% shall be payable by the assessee from
the first day of October or the 1st day of January, as the case may be, of
the assessment year to the date of the furnishing of the return. Since
interest is chargeable under the third clause of the proviso only when the
Income-tax Officer extends the time for the furnishing of the return on the
application of the assessee, the Appellate Tribunal presumed that. there
must have been an application by the assessee and that the Income-tax
Officer must have extended the time for filing the return. The Tribunal
thought that it was justified in drawing such a presumption as the correct
state of facts was not clear from the records of the case which were avail
able to them. We cannot say that the Tribunal erred in drawing such an
inference. Illustration (c) to Section 114 of the Evidence Act authorises
the drawing of a presumption that official acts have been regularly performed. Since interest was not chargeable unless time had been extended
the Tribunal was justified in holding that time must have been extended
on the application of the assessee. Accepting that finding we agree with
the Tribunal that penalty was not leviable.
2. The questions referred to us are, therefore, answered in favour of the
assessee and against the department. There will be no order as to costs.
