AI Drafter 
TaxTMI 
TaxTMI 
2017 (11) TMI 1424
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....The appeal was admitted for hearing vide order dated 11th July, 2005 which also frames a substantial question of law. For completeness, we would reproduce the relevant portion of the order dated 11th July, 2005, which reads as under: "The Assessing Officer's order revised the assessment order for the year 1989-90 and directed that demand raised for the said year shall be deemed to have been raised at the time of the making of the original assessment order in regard to which a demand notice had also been served upon the assessee. The Assessing Officer had on that basis directed that interest under Section 220(2) was chargeable on the amount demanded under Section 156. The following substantial question of law is in that backdrop formu....
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....62/- u/s 43B of the Act, which had become subject matter of the assessment order for the assessment year 1987-88, was remanded to Assessing Officer for reconsideration in the light of the judgement of the Supreme Court in Allied Motors (P) Ltd. v. CIT, (1997) 224 ITR 677(SC). The Assessing Officer applied the said judgement and as Sales tax amounting to Rs. 32,71,862/- was paid within the time, he allowed the said expenditure. Consequently, the Assessing Officer reworked the income for assessment year 1988-89 and an order u/s 154 of the Act was passed reducing the loss for assessment year 1988-89 to Rs. 2,47,077/-. 7. Assessment order for the assessment year 1989-90 was also made subject matter of order under section 154 of the Act as br....
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.... interest under Section 220(2) from 4th March, 1992 to 30th November, 1998 for a period of 81 months amounting to Rs. 6,26,755/-. Accordingly, the total demand payable pursuant to the order u/s 154 was computed. 10. We may, for clarity, record that the computation sheet states that the interest earlier allowed under Section 244 (1A) of the Act of Rs. 94,980/- shall stand withdrawn. On this, however, there is no controversy or issue before us. 11. The assessee thereafter preferred an appeal specifically challenging the direction to charge interest u/s 220(2) in the order under Section 154 of the Act. It was submitted that interest was not leviable and reliance was placed on some legal pronouncements. 12. The Commissioner of Incom....
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....either of the said sections. (emphasis supplied) 15. The order under Section 154 of the Act had the effect of enhancing the assessment. Such orders are appealable on all aspects decided and adjudicated. The order under Section 154 of the Act had also specifically dealt with and examined the question of interest u/s 220(2) of the Act and the date from which the interest was chargeable. The direction to charge interest was specifically given in the order under Section 154 of the Act. The claim and contention of the appellant assessee to the contrary was rejected and disallowed. The assessing officer had refused to accept the contention made by the assessee that interest would not be chargeable under Section 220(2) of the Act, until and ....
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.... 269 (Bom.), wherein reference was made to Section 246 (1) (f) which was pari materia to the clause applicable and it was held as under: "7. However, we find merit in the argument advanced on behalf of the assessee that appeal was maintainable under section 246(1)(f). For the sake of convenience, we reproduce hereinbelow section 246(1)(f) which reads as follows:- "Subject to the provisions of sub-section (2), any assessee aggrieved by any of the orders of ITO may appeal against such order under section 144 (sic. 154) or section 155 having the effect of enhancing the assessment or reducing the refund or refusing to allow the claim made by the assessee under either section 154 or section 155." 8. In the case of Empire Industries Ltd.....