Appeal against assessment can cover interest levy under the Income-tax Act when the assessment order itself is appealable.

Where an assessment order is competently appealable under section 246(c) of the Income-tax Act, 1961, the appellate authority may also examine the levy of interest under section 139(1) even though no separate appeal lies against the interest order alone. The Delhi High Court followed its earlier view, found no reason to depart from the settled position, and held the appeal maintainable in the stated circumstances. The ruling therefore confirmed that the assessee could challenge the interest levy within the appeal against the assessment order.

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Issues: Whether an appeal under section 246 of the Income-tax Act, 1961, is maintainable against an order charging interest under section 139(1) of the Income-tax Act, 1961 when the assessment itself is appealable.

Analysis: The answer was governed by the earlier decision of the same High Court holding that where a competent appeal lies from the assessment order under section 246(c), the appellate authority can also examine the levy of interest under section 139, although no separate appeal lies against the interest order by itself. The Court found no reason to depart from that view and declined to re-examine the settled position.

Conclusion: The question was answered in the affirmative. An appeal was maintainable in the stated circumstances, and the ruling was in favour of the assessee.

Ratio Decidendi: Where an assessment order is competently appealable under section 246(c) of the Income-tax Act, 1961, the appellate authority may also consider the levy of interest under section 139(1), even though a separate appeal against the interest order alone does not lie.

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