Non-appealable interest order cannot support a reference when appellate proceedings were entertained without jurisdiction.

An order imposing simple interest under the Indian Income-tax Act, 1922 was not appealable under Section 30(1) where advance tax paid was below eighty per cent of the tax on regular assessment. As no competent appeal lay against the original order, the Appellate Assistant Commissioner and the Tribunal acted without jurisdiction in disposing of the matter on merits, and their orders could not be treated as valid appellate orders for Section 33(1). On that basis, the reference machinery under Section 66 was not attracted, and the reference was rejected.

---

---

Issues: Whether a reference under the Indian Income-tax Act, 1922 was entertainable when the order under Section 18A(6) was not appealable and the appellate authorities had dismissed the matter on merits without jurisdiction.

Analysis: The liability to charge simple interest arose under Section 18A(6) where advance tax paid was less than eighty per cent of the tax determined on regular assessment. Section 30(1) did not make such an order appealable. Since the appeal before the Appellate Assistant Commissioner and the further appeal before the Tribunal were entertained and dismissed on merits without jurisdiction, their orders could not be treated as valid appellate orders under Section 33(1) so as to support a reference under Section 66. The absence of a competent appeal against the original order meant that the reference machinery was not attracted.

Conclusion: The reference was not entertainable and was rejected.

---