9911796707
TMI Blog2002 (10) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant is a company incorporated under the Companies Act and is engaged in the business of manufacture of centrifuged latex. The assessment of the appellant under the Income-tax Act, 1961, for the year 1986-87 was originally completed on March 15, 1989, in which the Assessing Officer levied a sum of Rs. 16,615 as interest under section 139(8) and a sum of Rs. 1,32,309 as interest under section 215 of the Income-tax Act, 1961. The appellant took up the assessment order in appeal before the Commissioner of Income-tax (Appeals), who granted relief to the appellant. The Assessing Officer gave effect to the appellate order in which interest under section 139(8) Rs. 8,805 and interest under section 215 Rs. 63,813 were levied. The appellant filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27, 1996, allowed the appeal directing the deletion of the interest levied under section 215 of the Act. In appeal by the Department, the Appellate Tribunal cancelled the order of the first appellate authority by holding that no appeal will lie against the levy of interest under section 215 of the Act and restored the order of the assessing authority. Shri John Ramesh, learned counsel for the appellant, submits that though the assessee had filed a revision under section 264 of the Income-tax Act for waiver of the interest levied under sections 139(8) and 215 of the Act, the Commissioner of Income-tax had considered only the waiver of interest under section 139(8) and left open the matter in regard to the levy of interest under section 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the order of the Tribunal and the order of the Commissioner of Income-tax, had no jurisdiction to consider the question regarding the validity of the levy of interest under section 215 of the Act. Admittedly, the appellant did not challenge the levy of interest under section 215 of the Act made in the original assessment order. It is only against the revised order giving effect to the first appellate order the appellant had chosen to file a revision under section 264 of the Income-tax Act read with rule 40 of the Rules, seeking for waiver of the interest. We find from the order of the Commissioner of Income-tax that the Commissioner has specifically noted the contention of the appellant regarding the waiver of interest as follows: "As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of Rs. 28,847 before the first appellate authority. According to us, the appellate authority had acted illegally in directing the Assessing Officer to waive the interest levied under section 215 without noticing the fact that the Commissioner of Income-tax has declined to grant the said relief. According to us, had the first appellate authority noticed the order of the Commissioner of Income-tax passed under section 264 of the Act read with rule 40 of the Rules, he would not have entertained the appeal at all. The Tribunal, according to us, has rightly cancelled the order of the first appellate authority by holding that in view of the order passed by the Commissioner of Income-tax under section 264 of the Act, no appeal will lie against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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