Appeal against interest levy is maintainable only on the ground of complete non-liability under the Income-tax Act.

An appeal lies against the levy of interest under the Income-tax Act as the interest charge forms part of the assessment process and reflects the statutory scheme governing defaults in filing or payment. The assessee may challenge the levy in appeal, but only on the ground that no liability to interest existed at all; the appeal cannot be used to dispute the levy on broader or partial grounds.

---

---

Issues: Whether an appeal lay under section 246 of the Income-tax Act, 1961 against the levy of interest under section 139 of the Act.

Analysis: The levy of interest under the Income-tax Act is part of the process of assessment and is attributable to the statutory scheme governing interest on default in payment or filing, including sections 139(8) and 215. The assessee can dispute such levy in appeal, but the challenge must be confined to the contention that no liability to interest existed at all.

Conclusion: An appeal lies against the levy of interest, subject to the assessee limiting the challenge to the ground of complete non-liability.

---