1985 (1) TMI 126

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....n under s. 246 (1)(c) of the Act. 2. The assessee filed an appeal before the CIT (A) against the order dt. 27th Jan. 1982 passed by the IAC (Asstt.) giving effect to the order of the ITAT E-Bench, New Delhi in appeal ITA Nos. 4071 (Del)/80, 1326 (Del)/1979,423 (Del)/1980 and 1554 (Del)/79 dt.30th Nov. 1981in which three contentions were raised as follows: (a) That the IAC erred in not allowing deduction of Rs. 3,21,570 in respect of entertainment expenses in re-computing the taxable income; (b) That the appellant company was wrongly denied payment of interest by the Government under s. 244(1A) of the Act in respect of refund worked out in favour of the assessee; (c) That the credit for tax deducted at source should have been all....

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....e A. B. that the CIT (A) has jurisdiction to hear appeals against orders specified in sub-s. (2) of s. 246 of the IT Act, the grant of interest under s. 244(1A) does not appeal to be one of the items in respect of which an appeal can be filed before the CIT (A) and I expressed my inability to deal with this mater as there is no appeal provided against the action or inaction of the ITO/IAC in respect of claim for interest under s. 244(1A). Accordingly, this ground of appeal is rejected." 5. Before us Shri K. K. Mehra, Chartered Accountant appearing for the assessee referring us to the judgment of the Hon'ble Delhi High Court in the case of CIT vs. Mahabir Prasad & Sons (1980) 17 CTR (Del) 161 : (1980) 125 ITR 165 (Del) submitted that sinc....

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....s right to approach the CIT (A). Therefore, the principle laid down in Mahabir Prasad's case though refer to the provision of s. 246(c) governs right of filing of appeal under s. 246 (c) also, which has the effect of making the judgment governing the present case also. 9. Since there is no dispute from the Revenue that the assessee-company filed a valid appeal before the CIT (A) and the latter did decide one ground in favour of the assessee and did not consider it necessary to decide the second ground, because the grievance had already come to be remedied under s. 154 of the Act. Such being the case the CIT (A) was certainly in error in rejecting the ground regarding non-payment of interest in respect of refund on the short ground that n....