9911796707
TMI Blog1978 (5) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by way of interest under s. 217 (1A). The AAC deleted the interest levied under s. 139(8) for both the years and part of the interest under s. 217 for the asst. yr. 1972-73. The Department went in appeal to the Tribunal contending that there was no right of appeal against levy of interest under any of the three sections and the AAC went wrong in interfering with the levy of interest. The Accountant Member taking support from the decision CIT vs. Sharma Construction Co.(1), and the Tribunal's decision in ITR No. 2632 of 72-73 dated 22nd Oct., 1974 held that since the assessee had filed appeal against other points, in the appeal so filed he was entitled to take objection against the quantum of levy of interest. He thus overruled the objec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not challenged his liability to be assessed under the Act. Referring to the head note on page 936 of 108 ITR, he pointed out that only if an assessee denied his liability to be assessed under the Act, he had the right of appeal to the AAC against the order of assessment. He further pointed out that when there is a direct decision of the Madras High Court in 70 ITR 863, the Judicial Member's views must be accepted. He, therefore, supported the views of the Judicial Member. 5. From the assessment order dated 25th March, 1975 for the year 1972-73, it is noticed that the total income was determined at Rs. 1,24,240 and in the computation of tax the ITO had added interest under s. 139 of Rs. 5,904 and interest under s. 217(1A) of Rs. 4,429 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve gone through the orders of both the Accountant Member and the Judicial Member and I have also heard the arguments of the Departmental Representative. The decision of the Karnataka High Court, referred to above and relied on by the Departmental Representative throws much light on the issue. There is also a latter decision of the Bombay High Court (Full Bench) on this issue in CIT vs. Daimler Benz AG. (3) wherein the Bombay High Court had considered all the decisions including the decision of the Karnataka High Court and also the Gujarat High Court decision in CIT vs. Sharma Construction Co.(1) and the Bombay High Court had summarised the findings as under on page No. 986: "Having regard to the aforesaid discussion of the decided case it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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