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TMI Blog2017 (11) TMI 1424X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest was specifically given in the order under Section 154 of the Act. The claim and contention of the appellant assessee to the contrary was rejected and disallowed. The assessing officer had refused to accept the contention made by the assessee that interest would not be chargeable under Section 220(2) of the Act, until and unless there was non-payment pursuant to the order passed. This is a peculiar case wherein the question of levy of interest under Section 220(2) of the Act, which is payable on non payment, was decided, levied and imposed in the order under Section 154 of the Act. In the present case, there was a specific direction and finding in the order passed under Section 154 in respect of charging interest under Section 220(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted for determination: Whether the Tribunal was, in the facts and circumstances of the case, right in holding that no appeal lies against the said order under Section 246A (1)(c) of the Income Tax Act, 1961 ? 3. Initially, we wanted to reframe the question of law to decide the question of chargeability of interest under Section 220(2) of the Income Tax Act, 1961( Act for short) on merits. However, in the factual matrix noticed below, we have refrained and have not reframed the question of law, as it is unclear whether interest under Sections 215 and 217 of the Act was chargeable and could be charged. 4. The Return declaring income of ₹ 12,05,070/- for the Assessment Year 1989-90 was filed by the appellant-assessee on 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 154 of the Act as brought forward losses for assessment year 1988-89 had got reduced. Some relief had also been granted to the assessee by the Commissioner (Appeals). Consequently, the assessing officer passed the rectification order under section 154 of the Act dated 30th November, 1998 for the assessment year 1989-90, assessing income under the normal provisions at ₹ 19,27,199/-. Section 115J of the Act was therefore not attracted. The assessee has not disputed the computation of income made vide the order dated 30th November, 1998 under Section 154 of the Act passed by the Assessing Officer. 8. This order under Section 154 of the Act dated 30th November, 1998 on the question of interest u/s 220(2) had directed: Since t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some legal pronouncements. 12. The Commissioner of Income Tax (Appeals) allowed the appeal recording that interest under Section 220 (2) of the Act was chargeable only when there was non-payment pursuant to notice u/s 156 of the Act. Interest u/s 220(2) would not be chargeable from the date of the original assessment order. 13. Revenue preferred an appeal before the Tribunal which, as noticed above, has been allowed, inter alia, observing that the first appeal by the appellant-assessee under Section 246(1)(c) of the Act challenging levy of interest under Section 220(2) of the Act was not maintainable before the Commissioner of Income Tax (Appeals). The decisions relied upon by the assessee were distinguished on the ground that they re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est would not be chargeable under Section 220(2) of the Act, until and unless there was non-payment pursuant to the order passed. This is a peculiar case wherein the question of levy of interest under Section 220(2) of the Act, which is payable on non payment, was decided, levied and imposed in the order under Section 154 of the Act. In the present case, there was a specific direction and finding in the order passed under Section 154 in respect of charging interest under Section 220(2) of the Act. Consequently, the direction for payment of interest which was contested by the appellant-assessee would be appealable under clause (c) of Section 246 (1) of the Act. 16. We are aware of the decisions in Associated Stone Industries (Kotah) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under either section 154 or section 155. 8. In the case of Empire Industries Ltd. v. Commissioner of Income-Tax reported in 193 ITR page 295 , the assessee had paid advance tax of ₹ 24.47 lacs on regular assessment being completed under section 143(3). The AO raised the demand under section 156 of the Act of ₹ 7.27 lacs including interest of ₹ 56,000/-. By Order dated 27-6-1974, the Appellate Authority allowed the appeal partly. While giving effect to the Appellate Order, the ITO determined the amount refundable to the assessee at ₹ 9.46 lacs. The amount was refunded but interest thereon under section 214 of the Act was not paid. Being aggrieved, the assessee filed an appeal before the Appellate Authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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