Broad appeal rights under income-tax law extend to rectification orders levying interest where jurisdiction and limitation are disputed.

An order of rectification levying interest under the Income-tax Act was held appealable under section 246(f). The right of appeal was construed broadly enough to cover rectification orders under sections 154 and 155, because the dispute was not limited to levy of interest but also raised issues of jurisdiction and limitation requiring consideration on merits. The existence of a mistake apparent from the record did not by itself exclude appealability. The question was answered in the affirmative in favour of the assessee.

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Issues: Whether an appeal lay under section 246(f) of the Income-tax Act, 1961 against orders of rectification under sections 154 and 155 of the Income-tax Act, 1961 levying interest under sections 139, 215, 217 and 220 of the Income-tax Act, 1961.

Analysis: The right of appeal under section 246(f) was held to be wide enough to cover the impugned rectification orders. The controversy was not confined to levy of interest simpliciter, but also involved questions as to the jurisdiction of the Income-tax Officer and limitation, which required adjudication on merits. The existence of a mistake apparent from the record did not exclude appealability of the order.

Conclusion: The order of rectification levying interest was appealable and the question was answered in the affirmative, in favour of the assessee.

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