1988 (2) TMI 46

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....ot lie to the Commissioner (Appeals) against an order of the Income-tax Officer passed to give effect to an appellate order made by the Appellate Assistant Commissioner in the quantum appeal, on the issue of non-allowance of interest under section 244 on the refund arising to the assessee as a result of the Appellate Assistant Commissioner's order in the quantum appeal ?" For the income-tax assessment year 1971-72, assessment was initially made and the matter went up to the Tribunal. The Tribunal passed an order granting certain reliefs to the assessee and in giving effect to the Tribunal's order, the Income-tax Officer passed what he described as a modification order dated September 19/22, 1978. The Income-tax Officer granted a refund o....

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....rders passed by the Income-tax Officer giving effect to the appellate decisions cannot be described as assessment orders in the sense they are understood under section 143 of the Act. It is, therefore, submitted that no appeal lies. We are afraid, the contention urged by the Revenue is not tenable. An order of assessment is one in which there is computation of income or computation of tax or both. That computation of income and tax can be made by the Income-tax Officer not only in regular assessment made under section 143 of the Act but also in orders passed from time to time giving effect to the decisions of the appellate authorities. The order passed by the Income-tax Officer giving effect to the decision of the appellate authority is as ....

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....at where there is total denial of the liability to pay interest, the order is liable to be challenged in an appeal although there can be no appeal if the dispute is only regarding the quantum of interest payable. A distinction lay in the fact that, where, on principle of law, there is total denial of the assessee's claim, it is open to him to show that the claim for interest is well-founded. If, however, on principle, there was no objection to the grant of interest but the dispute relates only to the quantum, then the assessee has no right of appeal against the order on the ground that interest was inadequately granted. In our opinion, this analogy holds good in the present case also. This is not a case where the assessment is in issue on t....