2023 (8) TMI 1173 - AT - Income Tax

Maintainability of appeal against Levy of interest u/s 234B C and u/s 220(2) - assessment order passed u/s 143(3) r.w.s. 254 - Whether the appeal filed by the assessee is maintainable or not? - HELD THAT - Admittedly, the appeal is a statutory right. If the statute does not confer any right on the assessee to file the appeal, same cannot be filed. According to the provisions of Section 246A any assessee who is aggrieved by Specified orders may appeal to the Commissioner Appeal. Therefore, the basic condition to section 246A pre supposes that there has to be an order listed in Section 246A (1) of the Act. There are approximately 28 types of the orders listed. The second condition is that assessee must be aggrieved by those orders. Admittedly, in this case, the order of assessment passed u/s 143 (3) - Therefore, specified order is assessment order passed u/s 143(3) of the Act. This order is listed in section 246A (1) (a) of the Act. Therefore it is one of the specified orders against which appeal can be preferred before the LD CIT (A). There is a specified order i.e. order under Section 143(3) of the Act by which assessee is aggrieved and therefore, assessee is entitled to file an appeal in the present case before the learned CIT (A) u/s 246A (1) (a) of the Act. It is not the case of the Revenue that assessment order is not specified order under Section 246A (1) of the Act and assessee is not aggrieved with that. Therefore, we are not in agreement with the order of the learned CIT (A) that the appeals of the assessee are not maintainable. CIT (A) therefore, should have decided the issue on its merit. Therefore, we categorically hold that the appeals filed before the learned CIT (A) for all these assessment years were wrongly dismissed holding it to be not maintainable. According to us, same is maintainable and those are liable to be decided on the merits of the case.

Summary

Issues Involved:
1. Breach of natural justice.
2. Levy of interest under Section 220(2) of the Income Tax Act.
3. Quantification of interest under Section 220(2).
4. Levy of interest under Sections 234A, 234B, and 234C of the Income Tax Act.
5. Quantification of interest under Sections 234A, 234B, and 234C.

Summary:

Issue 1: Breach of Natural Justice
The assessee contended that the appellate order by the Commissioner of Income-tax (Appeals) [CIT(A)] was framed in breach of the principles of natural justice, without application of mind to the facts and submissions, and without providing an opportunity of personal hearing.

Issue 2: Levy of Interest under Section 220(2)
The CIT(A) dismissed the ground raised by the assessee regarding the levy of interest under Section 220(2) of the Income Tax Act as not maintainable. The CIT(A) based his decision on surmises, suspicion, and conjecture, taking into account irrelevant considerations and ignoring relevant material. The Tribunal found that the appeal was maintainable and directed the CIT(A) to decide the issue on its merits.

Issue 3: Quantification of Interest under Section 220(2)
The CIT(A) dismissed the ground concerning the quantification of interest under Section 220(2) as not requiring adjudication. The Tribunal held that the appeal on this ground was maintainable and directed the CIT(A) to consider the issue on its merits.

Issue 4: Levy of Interest under Sections 234A, 234B, and 234C
The CIT(A) dismissed the ground raised by the assessee regarding the levy of interest under Sections 234A, 234B, and 234C as not maintainable. The Tribunal found that the appeal was maintainable and directed the CIT(A) to decide the issue on its merits.

Issue 5: Quantification of Interest under Sections 234A, 234B, and 234C
The CIT(A) dismissed the ground concerning the quantification of interest under Sections 234A, 234B, and 234C as not requiring adjudication. The Tribunal held that the appeal on this ground was maintainable and directed the CIT(A) to consider the issue on its merits.

Tribunal's Decision:
The Tribunal set aside the appeals back to the file of the CIT(A) with directions to the assessee to file all submissions within 30 days and for the CIT(A) to decide the issues on their merits within 90 days. The appeals were allowed for statistical purposes, and all other grounds of appeal were kept open to be decided by the CIT(A).