1999 (2) TMI 45

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.... R. JAYASIMHA BABU J.---The assessee has incurred liability for payment of interest by reason of delay in filing the return and not paying the advance tax in time. While making the assessment accordingly interest was added. The assessee's grievance is that before adding interest, the assessee should have been given show-cause notice and heard in the matter. Counsel for the assessee relied on ....

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....g made liable for payment of interest. The fact that power is conferred on the authorities to reduce or waive the interest, if petition is filed for that purpose before the appropriate, authority cannot have the effect of compelling the authority to give a show-cause notice before adding interest and in having to make a separate order with regard to the levy of interest. The provision made in the ....

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....s the extent to which opportunity is required to be given under the provisions of the Act. The Supreme Court in the case of Central Provinces and Manganese Ore Co. Ltd. v. CIT [1986] 160 ITR 961, has categorically laid down that the levy of interest is a part of the process of assessment. It is also held that it is open to the assessee to dispute the levy in appeal provided he limits himself to th....