TMI Blog1998 (1) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... ging a tax from which an appeal to the Appellate Assistant Commissioner is permissible?" An assessment was framed under section 143(3) of the Income-tax Act, 1961, by the Income-tax Officer on March 23, 1974. The taxable income of the assessee was computed and the tax was levied. It appears that there was a delay in filing the return and also a delay in filing the statement of advance tax. By the same order of assessment, the Income-tax Officer also directed the charging of interest under sections 139(8) and 217(1)(a). The assessee preferred an appeal before the Appellate Assistant Commissioner of Income-tax. Not only the order of assessment was challenged disputing the computation of the income and, consequently, the quantum of tax, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner to the extent to which it upsets the order of the Income-tax Officer challenging the levy of interest under sections 139(8) and 217(1)(a) of the Act has been set aside. We have heard the learned senior standing counsel for the Department. There is no appearance on behalf of the assessee. At the very outset, let it be stated that the question referred by the Tribunal to the High Court is not very happily worded. The scope of the question is very limited. It calls for an answer limited to the question whether interest can be said to be tax so as to fall within clause (c) of section 246 of the Act. However, the real question arising for decision is as to whether levy of interest by the Assessing Officer can form the subject-matte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disputed, for example, that the return has been furnished under section 139 with delay, it will be a question merely of satisfying the relevant authority that there are circumstances calling for a reduction or waiver of the interest. If an opportunity to do so has not been made available to the assessee before the order levying interest is made, it will be open to the assessee to apply to the Income-tax Officer after such order has been made to show that a reduction or waiver of interest is justified. The question whether a case is made out for waiver or reduction of the interest levied under sub-section (8) of section 139 or under section 215 cannot be the subject of an appeal under clause (c) of section 246 of the Income-tax Act." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest under section 139 or 217 has been levied by the Income-tax Officer there is a provision for the assessee to appear before the Income-tax Officer and seek waiver or reduction of interest or quantum of interest. In the case at hand, the assessee did not approach the Income-tax Officer with a prayer for waiver or reduction in the amount of interest but filed an appeal. In the appeal it was not the case of the assessee that the very jurisdiction to levy the interest was not attracted and, therefore, the interest could not have been levied at all. A perusal of the order of the Appellate Assistant Commissioner shows that the contention was confined to waiver or reduction of interest if only an opportunity to show cause would have been allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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