1980 (6) TMI 54

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....der s. 217(1A). The ITO computed the same at Rs. 1,33,550. The assessee went in appeal to the CIT (A) who dismissed the appeal of the assessee on the ground that imposition of penal interest under s. 217(1A) is not appealable. For this he relied upon a decision of the Gujarat High Court in CIT vs. Sharma Construction Co. (1). The assessee has consequently come in second appeal before us. 2. We ....

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.... where the assessee did not deny his liability to be assessed and the liability to pay advance tax, no appeal lay to the AAC against an order levying interest upon an assessee unless he was also denying the liability to pay interest altogether. The Hon'ble High Court laid down some principles which are summarised at pages 767 and 768 of Report. Paragraph (b) at page 768 reads as under: "Even wi....

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....have stated that there seems to be no provision for levying interest in a case where the assessee does not make his own estimate or makes default in paying advance tax in accordance with ITO's order under s. 10. According to the learned authors s. 18A(8) of the old Act of 1922 was wide enough to authorise the levy of interest in such a case. Therefore, according to the assessee, it had denied its ....