Appealability of interest under section 139(1): statutory relief was confined to refund, not a separate appeal.

Levy of interest under section 139(1) of the Income-tax Act was treated as outside the scope of appeal because the Act contained no provision creating such an appellate remedy. The presence of section 139(8)(b), which allowed refund of interest where the tax liability was reduced in appeal, was read as showing that the statute provided relief only by refund and not by a separate challenge to the interest order. On that basis, the levy of interest under section 139(1) was held not to be appealable.

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Issues: Whether levy of interest under section 139(1) of the Income-tax Act, 1961, was appealable.

Analysis: The levy of interest under section 139(1) was held to be outside the scope of appeal because the Act contained no provision enabling such an appeal. The presence of section 139(8)(b), which provided for refund of interest where the tax on which interest was payable had been reduced in appeal, showed that the statute itself contemplated relief by way of refund and not by a separate appeal against the interest order.

Conclusion: The question was answered in the affirmative, and the levy of interest under section 139(1) was held not to be appealable.

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