9911796707
TMI Blog1986 (2) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. AAC of IT erred in admitting appeal against the charge of interest under ss. 139(8) and 217 of the IT Act, 1961 and in that view erred in deleting the interest so charged under ss. 139(8) and 217 of the IT Act, 1961" 2. The assessee had constructed a house at 50 Subarban Park Road, Howrahy and showed the cost of construction at Rs. 3,06,300. The ITO made enquiry and estimated the cost of construction at Rs. 3,55,000. The difference between the two amounting to Rs. 48,000 was considered to be in income from undisclosed sources during the three asst. yrs. 1975-76, 1976-77 and 1977-78. The distribution was worked out at Rs. 9,600, 28,800 and Rs. 9,600 for the three years respectively. 3. In pursuance of the above findings given in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est. Hence, he urged that the AAC should not have admitted the appeals and so he prayed for the quashing of the order of the AAC and the restoration of that of the ITO. Shri G.C. Sinha, the ld. representative for the assessee, on the other hand, supported the order of the AAC. He stated that charging of interest has been held to be appealable by the Calcutta High Court in the case of CIT vs. Lalit Prasad Rohini Kumar (1979) 8 CTR (Cal) 322 : (1979) 117 ITR 603 (Cal). He drew our attention to the observations at page 612 which read as under: "We have noticed the expressions used in the first limb of cl. (e) of s. 246. It deals with cases where the assessee denies his liability to be assessed under the Act. The assessee in this case, as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of orders of the ITO directing to charge interest. However, we will confine ourselves to the decisions of the Hon'ble Calcutta High Court Which are binding on us. We have gone through the three decisions of the Calcutta High Court on this point viz. (1) Lalit Prasad (1979) 117 ITR 603 (cal), (2) CIT vs. Karam Chand Thapar (1979) 119 ITR 751 (Cal) and (3) New Swadeshi Mills (1984) 147 ITR 163 (Cal). We find one common feature in all the three decisions, namely, that the objection to the charging of interest was not the only ground taken before the first appellate authority. Such a ground was taken in conjunction with another ground or other grounds. The ld. representative for the assessee has strongly relied on the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is so, then the AAC will consider the matter further. If not the appeal should be rejected In limine. We would like to observe that unless a proper ground in clearly made out on the lines as indicated earlier the assessee may be shut out from agitating a ground against imposition of interest in its appeal." On the same page it has also been observed: "Where the liability to be assessed and/or to pay interest is not totally denied by the assessee, objection to the imposition of interest will necessarily be an objection either as to commutation or as to the method or manner of imposition of interest. Such objection cannot be agitated by the assessee in an appeal either by themselves or along with other grounds objecting to the quantum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Similar rights against charging of interest under the other sections of the Act are conspicuous by their absence in s. 246 of the Act. On a consideration of the case law, as laid down by the Hon'ble Calcutta High Court, we do not find any authority for the proposition that a single ground challenging the levy of interest can be validly relied before the AAC/CIT(A). Hence, we vacate the order of the AAC and restore the orders of the ITO for both the years under consideration. We find support for this conclusion of ours from the decision in the case of CIT vs. Mahabir Prasad Sons (1980) 17 CTR (Del) 161 : (1980) 125 ITR 165 (Del) in addition to the aforesaid decisions of the Hon'ble Calcutta High Court. 10. In the result, the two appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
