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TMI Blog2003 (7) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest under sections 214 and 244(1A)?"Facts: While giving effect to the order dated December 31, 1986, passed by the Commissioner of Income-tax (Appeals), the Assessing Officer failed to grant interest on Rs. 6,13,234 paid by way of advance tax under section 214 of the Income-tax Act. According to the assessee, they had paid excess advance tax and they were entitled to interest to the extent of the excess advance tax paid by them under section 214. The assessee further claimed interest on Rs. 4,87,236 which they had paid on demand on March 7, 1986, under section 244(1A) of the Income-tax Act which was not granted by the Assessing Officer while working out the order passed by the appellate authority. Being aggrieved by the non-granting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettled proposition that there is no inherent right of appeal. That, it is to be specifically conferred by the statute. It is equally well settled that if there is a provision conferring a right of appeal it should be construed in a reasonable and liberal manner. The power of the Income-tax Officer is to make assessment under section 143 of the Income-tax Act. It is that assessment which is the subject-matter of appeal. The appellate authority, on appeal, has the power to confirm, reduce, increase or annul the assessment or to set aside the assessment and remit the matter back to the Income-tax Officer for making fresh assessment in accordance with the directions given by the appellate authority. Clause (c) of section 246(1) is in two parts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 215 shall lie provided the assessee disputes the levy on the ground that he is not liable to the levy at all. That, levy of interest is a part of the process of assessment and it is open to the assessee to dispute the levy in appeal provided he limits himself to the ground that he is not liable to the levy at all. However, if the assessee does not dispute the amount of advance tax determined as payable by the Income-tax Officer then appeal under section 246(1)(c) will not lie. Now, in the present case, the Assessing Officer has not denied the claim of the assessee for interest under section 214 and section 244(1A). That, while working out the order passed by the appellate authority, the Assessing Officer omitted to grant interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 992] 193 ITR 295 (Bom), the question as to whether the appeal was maintainable under section 246(1)(c) against the order of the Assessing Officer not granting interest under section 214 was expressly kept open. Therefore, the said judgment also does not help the assessee in support of its contentions. In the case of Caltex Oil Refining (India) Ltd. v. CIT [1993] 202 ITR 375, the Bombay High Court took the view that the power of the Income-tax Officer was to make assessment under section 143 or section 144 of the Income-tax Act and that interest under section 214 was the part of assessment and the said interest was deemed to be tax for the purposes of the Act including section 246(1)(c). However, that judgment has no application because it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n regular assessment being completed under section 143(3). The Assessing Officer raised the demand under section 156 of the Act of Rs. 7.27 lakhs including interest of Rs. 56,000. By order dated June 27, 1974, the appellate authority allowed the appeal partly. While giving effect to the appellate order, the Income-tax Officer determined the amount refundable to the assessee at Rs. 9.46 lakhs. The amount was refunded but interest thereon under section 214 of the Act was not paid. Being aggrieved, the assessee filed an appeal before the appellate authority and claimed that the Income-tax Officer ought to have granted interest under section 214. The appellate authority and the Tribunal held that the appeal was not competent. On a reference, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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