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TMI Blog1992 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... sment years 1970-71 and 1971-72. The following two questions are referred to us under section 256(1) of the Income-tax Act, 1961 : "1. Whether, on the facts and in the circumstances of the case, the assessee is entitled to development rebate at the rate of 35/25 per cent. on the new plant and machinery added and brought to use in its construction business during the accounting periods relevant t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to the assessment years 1970-71 and 1971-72." Question No. 2 : For the assessment year 1971-72, the Income-tax Officer had levied interest under section 215 of the Income-tax Act, 1961. The assessee had contended before the Appellate Assistant Commissioner that the Income-tax Officer had erred in charging interest, inter alia, under section 215 of the Income-tax Act, 1961, and had submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the assessee against charging of interest, inter alia, under section 215 was not competent. Hence, the Tribunal did not go into the merits of the contentions of the assessee in this connection. Our attention, however, is drawn to a decision of the Supreme Court in the case of Central Provinces Manganese Ore Co. Ltd. v. CIT [1986] 160 ITR 961. The Supreme Court considered the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above case depending upon the manner of challenge to the levy of interest by the assessee. If the challenge to the levy of interest under section 215 is on the ground that the assessee is not liable to the levy at all, the assessee is entitled to question such levy of interest in appeal. The Tribunal, therefore, is required to apply the ratio of the above Supreme Court case to the facts and cir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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