1986 (2) TMI 18

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..... aw for being answered by this court, vide its order dated January 30, 1978 "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in respect of the interest charged under section 139 and under section 217 of the Income-tax Act, 1961, an appeal did not lie to the Appellate Assistant Commissioner under section 246 of the said Act and, therefore, the App .....

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..... partment went in appeal before the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur, and one of the contentions raised was that the appeal regarding levy of interest under sections 139 and 217 was not maintainable. The Tribunal upheld the contention of the Department and found that the appeal against the levy of penal interest on both the counts, did not lie before the Appellate Assistant Commi .....

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..... d by the assessee. This court had occasion to consider this question in CIT v. Associated Stone Industries (Kotah) Ltd. [1981] 130 ITR 868. In that case, the appeal was against the order of penal interest under section 18A of the Income-tax Act for the assessment years 1957-58 to 1960-61. This question was answered in the negative and it was held that an appeal does not lie against the order lev .....

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..... penal interest also while denying his liability to be assessed to tax under section 18A of the Act." Such a question again came up before this court in D. B. Income-tax Reference No. 16 of 1979-CIT v. Devichand Panmal [1986] 160 ITR 545. The question was, "whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the Appellate Ass .....

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..... answer to the question referred to us, therefore, is that in the instant case, as the assessee had preferred the appeal against the assessment order, the assessee could legitimately agitate the question of levying of interest under sections 139 and 217 of the Income-tax Act, 1961, and so the Tribunal was not right in holding that the Appellate Assistant Commissioner acted beyond his jurisdiction i .....

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