TaxTMI 
TaxTMI 
2005 (12) TMI 255
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....order reads as under:- "Ref: Order of Chief Commissioner of Income-tax in C.No. CCA-105(96)/CBE/96-97 dated 24-8-2000. ORDER Giving effect to the order of Chief Commissioner of Income-tax, Chennai in CCA 105(96)/CBE/96-97, dated 24-8-2000 the Interest under sections 234A, 234B and 234C charged are hereby waived. The Interest already collected is refunded to the assessee as under:- Interest under section 234A : Rs. 10,266 -do- u/s 234B : Rs. 99,238 -do- u/s 234C : Rs. 6,932 ------------- Total refundable Rs. 1,16,436" ------------....
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.... any claim on this behalf. Accordingly he argued that this order of the Assessing Officer giving effect to the order of the Chief Commissioner of Income-tax for waiver of interest under sections 234A 234B & 234C is an appealable order as equated to the order under section 154 of the Act. Accordingly, the ld. counsel of the assessee, Sri Baskar, urged the Bench to uphold the order of the CIT (Appeals) on this issue. 5. We have heard both the sides and also gone through the precedents relied on. We have also considered the case records. As narrated above, the Assessing Officer passed the order giving effect to the order of the Chief Commissioner of Income-tax waiving interest under sections 234A, 234B & 234C. The Chief Commissioner of Income-tax in the proceedings before him passed an order on 24-8-2000 for waiver of interest and the relevant paragraph 2 of his order reads as under:- "2. I have seen that the Commissioner of Income-tax, Coimbatore, has vide her C. No. 143 3-C (55)/96-97/CBE, dated 12-7-2000, admitted the factual position of offer in the revised return being the cause for charging of interest. The Income-tax Officer, Ward I(3), Salem's report confirms the fact th....
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....n to the assessee to challenge the order of the Assessing Officer refusing to grant interest on refund, if any due. The Hon'ble Madras High Court has finally held as under:- "The Supreme Court also had an occasion to consider the question whether an appeal would lie against an order levying interest under section 214 of the Ad. The Supreme Court held that the levy of interest is part of the process of assessment and it is open to the assessee to dispute the levy in appeal, provided, he limits himself to the ground that he is not liable to the levy at all. The above two decisions, viz., the decision of this Court as well as the decision of the Supreme Court make it clear that it is open to the assessee to challenge the order of the Income-tax Officer refusing to grant interest under section 214 of the Act, provided he has challenged the order of assessment. It is no doubt true that no appeal would like against an order refusing to grant interest simpliciter, but, when the entire assessment is challenged before the Assistant Commissioner it is open to the assessee to challenge the order of the Income-tax Officer refusing to grant interest." 8. Further, the Hon'ble jurisdictiona....
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....) An order made under section 237;" It is clear from the above provisions that it does not speak of exclusive refusal to grant interest can be challenged under these provisions as the ld. counsel of the assessee cited these particular provisions. Nothing is coming out of these provisions that consequential order granting refund on account of waiver of interest under sections 234A, 234B & 234C by the Chief Commissioner of Income-tax can be challenged under these particular provisions. We have also gone through the entire provisions of section 246A as appealable orders before the CIT (Appeals) and see that no such provision which can be challenged against the exclusive refusal to grant interest. The right of appeal is not merely a matter of procedure. It is a matter of substantive right. The right of appeal is a creature of statute and it is for the Legislature to decide whether right of appeal could be unconditionally given to an aggrieved party. If the statute does not create any right of appeal, no appeal can be filed. The right of appeal inheres in no one and therefore, an appeal for maintainability must be having a clear authority of law and that is why the right of appeal is....