1976 (3) TMI 97

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....he assessee nor its representative was present when these applications were called for hearing. We, therefore, proceed to dispose of these applications ex-parte on the basis of the materials on record. 2. By these application under s. 256(1) of the IT Act, 1961 the Revenue requires the Tribunal to refer the following questions of law, said to arise out of the consolidated order of the Tribunal,....

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....irect the ITO to examine the claim of the assessee in accordance with r. 117-A of the IT Rules, 1962? (iv) Whether, the Tribunal is correct in holding that the levy of interest under s. 139(1) could be sustained only if the assessee has made an application for extension of time before the ITO? Inassuch as, in our opinion, no referable question of law does arise out of the aforesaid consolida....

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....amine whether the assessee was prevented by sufficient cause from furnishing the returns within the time and a case for reduction or waiver of interest payable under s. 139(1) made out under r. 117-A of the IT Rules, 1962. The Tribunal has no doubt stated in paragraph 24 of its order that :- "The levy of interest under s. 139(1) can be sustained only when the appellant has made an application f....

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....as that though an order under s. 139(1) levying interest is not as such appealable, yet levy of interest can be contested if an appeal is made against the assessment order. This view has been uniformly followed by the Tribunal in a number of cases and accepted by the Revenue. Though the ground regarding levy of interest was entertained by the Tribunal, it has ultimately directed the ITO to examine....