Maintainability of appeal cannot be denied by branding a weak ground as sham; the matter was remanded for fresh decision.

An appellate authority cannot treat a ground of appeal as non-existent or sham merely because it appears weak; if the ground is raised and is capable of supporting a connected challenge, maintainability cannot be denied on that basis. Where the authority has in fact adjudicated the objection, the ground must be regarded as having been taken, and the matter should be decided on merits rather than rejected at the threshold. The conclusion set aside the finding that the appeal was not entertainable in relation to interest under section 217 and remanded the matter for fresh disposal in accordance with law.

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Issues: Whether a ground of appeal challenging the levy of interest under section 217 of the Income-tax Act, 1961 could be treated as non-existent or sham so as to deny maintainability, and whether the appeal had to be entertained on that basis.

Analysis: The appellate authority cannot disregard a ground of appeal by branding it as sham or without substance. The existence of a ground, even if weak, is sufficient if it confers a right to pursue another connected ground. Once the authority has in fact adjudicated upon the objection, the ground must be treated as having been taken. The question of merits was not examined for the first time at this stage, and the proper course was to restore the matter for fresh disposal.

Conclusion: The finding that the appeal was not entertainable on the ground of interest under section 217 was set aside, and the matter was remanded for fresh decision in accordance with law.

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