INCOME TAX ACT, 1961

Section 246A

Appeal [CIT(A)] - Maintainability - Assessee aggrieved by levy of interest under sections 220(2), 234D as well as withdrawal of interest under section 244A -

Assessee was aggrieved by levy of interest under sections 220(2), 234D as well as withdrawal of interest under section 244A by AO while passing the giving effect order to judgment of jurisdictional High Court. CIT(A) dismissed appeals of assessee on the ground that giving effect order passed by AO under section 260A was not an appealable order. Held: Assessment under section 143(3) would include not only determination of amount of tax calculated at the rate prescribed under Finance Act but also interest or any other thing which has the effect of reducing or enhancing total amount payable by assessee under such an assessment. Therefore, interest charged under section 220(2) is part of assessment and is deemed to be tax for the purpose of section 246 and consequently appeal filed by assessee against such order of AO objecting to amount of interest was maintainable. Accordingly, impugned order of CIT(A) was set aside and matter was remanded to CIT(A) for deciding the issue on merits.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2002-03 to 2004-05

SUBSCRIBE FOR FULL CONTENT