Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 501 - AT - Income TaxInterest u/s 244A - maintainability of the appeal against the order of the Assessing Officer and levying the interest under section 220(2) in pursuant to the order/judgment of the appellate forum - HELD THAT:- Tax liability of the assessee is varied from as it was at the time of the original assessment order passed u/s 143(3) due to the reason of levy of interest u/s 220(2) as well as interest under section 234D though the AO has also raised the demand by adding an amount on account of withdrawal of interest u/s 244A which was granted along with the refund. CIT (Appeals), has dismissed the appeal of the assessee in limine being not maintainable as the said order of the Assessing Officer in computing the Income-tax liability/demand is not appealable - assessee has relied upon a series of decisions in support of the contention that the order passed by the Assessing Officer in pursuant to the appellate authority is an appealable order. It is pertinent to note that there are divergent views on this issue about the maintainability of the appeal against the order of the Assessing Officer and particularly levying the interest under section 220(2) in pursuant to the order/judgment of the appellate forum. Commissioner of Income-tax relied upon the judgment of ANZ Grindlays Bank PLC [1999 (8) TMI 29 - CALCUTTA HIGH COURT]whereas the learned authorised representative of the assessee has relied upon a series of decisions of other High Courts in support of his contention. So far as the recomputation of the total income of the assessee AO has not passed any order or decided any issue but he has simply computed the total income as it was determined while passing the original assessment order. Therefore, to that extent the said order AO cannot be regarded as a decision of the Assessing Officer which can be challenged in the appeal until and unless some calculation mistake or typographical mistake occurred which can be rectified under section 154 of the Income-tax Act. Computation of Income-tax liability of the assessee in pursuant to the said order certainly increased the demand which was raised at the time of original assessment order passed under section 143(3) and further since after the order of the Tribunal there was no demand outstanding against the assessee and, therefore, it becomes a debatable question whether the interest under section 220(2) will be reckoned from the original demand arising from the assessment order passed under section 143(3) or it will be reckoned from the giving effect order passed by the Assessing Officer to the judgment of the hon'ble High Court. This aspect requires application of mind and also to take a decision whether the interest under section 220(2) has to be levied for the period reckoning from the original demand till the recomputation of Income-tax as per the outcome of the finality of the dispute. Once the Assessing Officer has to take a decision regarding the reckoning of the period from which the interest has to be calculated on the outstanding demand then the said order of the Assessing Officer would certainly be challenged by filing appeal before the Commissioner of Income-tax (Appeals) under section 246 - Appeals of the assessee are allowed for statistical purposes.
|