Appealability of interest levy under Income-tax Act rejected where precedent excludes section 246 remedy.

An appeal does not lie under section 246 of the Income-tax Act, 1961 against charging of interest under section 217(1A) where the governing precedent treats such levy as outside the appeal provision. Relying on Central Province Manganese Ore Co. Ltd. v. CIT, the Bombay High Court noted that the assessee did not dispute the precedent and held the appeal remedy unavailable. The tribunal's view rejecting the appeal was therefore correct, and the reference was disposed of by answering the assessee's question against it while treating the revenue questions as academic.

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Issues: Whether an appeal lay under section 246 of the Income-tax Act, 1961 against charging of interest under section 217(1A) of that Act.

Analysis: The question was answered in the light of the Supreme Court decision in Central Province Manganese Ore Co. Ltd. v. CIT, which the assessee did not dispute as governing the point.

Conclusion: No appeal lies under section 246 of the Income-tax Act, 1961 against charging of interest under section 217(1A); the issue was answered in favour of the Revenue and against the assessee.

Final Conclusion: The reference was disposed of by declining to answer the revenue questions as academic and by answering the assessee's question against the assessee.

Ratio Decidendi: Where the governing precedent establishes that a levy of interest under section 217(1A) is not appealable under section 246, the tribunal's view rejecting such an appeal is correct.

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