1977 (6) TMI 36 - AT - Income Tax

Summary

Issues:
Appealability of interest under s. 214 and computation of property income affecting total income.

Analysis:
The appeals involved common issues and were heard together for convenience. The assessee was assessed for two consecutive years, and the first ground of appeal in both years related to the computation of property income affecting the total income. The second ground of appeal in both years concerned the allowance of interest under s. 214. The AAC declined to entertain the appeal related to interest under s. 214, stating it was not appealable. The assessee argued that the computation of property income impacted the total income, making the interest issue appealable. Reference was made to relevant court decisions to support the argument. The Departmental Representative contended that the issue was not appealable as the advance tax liability computation was not challenged.

Upon considering the contentions, it was found that the assessee was challenging the computation of total income, which directly affected the interest payable under s. 214. The assessee impliedly disputed the advance tax liability, impacting the total income calculation. Reference was made to a Bombay High Court decision highlighting that an appeal lies if the liability to be assessed for advance tax is challenged. The issue was deemed appealable based on these observations, and the AAC was directed to reconsider the issue on merits for both years. Consequently, both appeals were allowed.

In conclusion, the judgment addressed the appealability of interest under s. 214 and the computation of property income affecting the total income. The assessee's challenge to the total income computation was found to impact the interest payable under s. 214, making the issue appealable. The decision referenced relevant court rulings to support the appealability of the issue. The AAC's decision to not admit the point as appealable was overturned, and the appeals were allowed, directing the AAC to reconsider the issue on merits for both years.