TMI Blog1991 (3) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... tax against the non-allowance of interest by the Income-tax Officer under section 214/244 of the Income-tax Act, 1961, in the order giving effect to the order of the Appellate Assistant Commissioner in the quantum appeal competent ?" The assessee had, it is common ground, paid advance tax of Rs. 24,47,850. On regular assessment completed under section 143(3), the Income-tax Officer raised a demand under section 156 of the Act, of Rs. 7,27,401 inclusive of interest of Rs. 56,161. By an order dated June 27, 1974, the Appellate Assistant Commissioner allowed the appeal partly. While giving effect to the appellate order on August 29, 1974, the Incometax Officer determined the amount refundable to the assessee at Rs. 9,46,137. The amount was r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order. Accordingly, the assessee's appeal was dismissed. The assessee went in further appeal to the Tribunal. By the impugned order dated January 23, 1976, the Tribunal held that an appeal merely against an order under section 18A of the Indian Income-tax Act, 1922, corresponding to section 215 of the Act, would not lie but, in an appeal against an order of assessment, it would be open to the assessee to challenge the Income-tax Officer's order under section 18A of the Act as well. It also held that demanding interest from the Income-tax Officer under section 214 of the Act could not be treated as a case of the assessee denying its liability to be assessed under the Act. The Tribunal thus held that the appeal filed by the assessee merel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of CIT v. Perfect Pottery Co. Ltd. [1988] 173 ITR 545, wherein, in identical circumstances, an appeal against non-payment of interest under section 214 of the Act was held competent. He pointed out that the Madhya Pradesh High Court, in that case, had followed our court's judgment in the case of CIT v. S. C. Shah [1982] 137 ITR 287. Lastly, Mr. Dastur argued that the appeal would also be competent under clause (n) of sub-section (1) of section 246 which provides for appeal against an order under section 237 of the Act. Section 237 deals with the question of refund of excess amount of tax paid by the assessee. It was his case that, by non-payment of interest on the amount of refund due, the assessee is aggrieved as the amount of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. Section 237 deals with the question of refund of excess amount of tax. Tax and interest are different in concepts and are treated differently in the Income-tax Act under various clauses. It is, therefore, too good a proposition to say that the appeal against non-payment of interest under section 214 of the Act could be treated as an appeal against an order under section 237 of the Act. In reply, Mr. Dastur invited our attention to the Supreme Court decision in the case of CIT v. B. N. Bhattachargee [1979] 118 ITR 461. He placed particular emphasis on the observations in that case at page 476 to show that even the Supreme Court has held that, in appropriate cases, as converse of the proposition, the Department can be equated with the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer is supposed to give effect to the order of the appellate authorities, i.e., the Appellate Assistant Commissioner or the Tribunal. By a judicial pronouncement, it can now be taken as settled law that what is done by the Income-tax Officer to give effect to the appellate orders results in an assessment under section 143 or 144, as the case may be. There is no reason why, in an appropriate case, such an order cannot also be treated as an order passed under section 154 of the Act. In the present case, the Appellate Assistant Commissioner has specifically so stated. The Tribunal, to say the least, has not disturbed that finding. Having regard to the principle of construction that the provision for appeal should be liberally construed, we wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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