- (1.) THIS reference has come before the Court at the instance of the assessee under Section 256 (1) of the Income Tax Act, 1961. It concerns Assessment Year 1985-86. In this reference, the following question arises for determination. "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that no appeal was maintainable against the refusal to grant interest under Sections 214 and 244 (1a)?" FACTS:
(2.) WHILE giving effect to the Order dated 31-12-1986 passed by CIT (Appeals), the AO failed to grant interest on Rs. 6,13,234/- paid by way of advance tax under Section 214 of the Income Tax Act. According to the assessee, they had paid excess advance tax and they were entitled to interest to the extent of the excess advance tax paid by them under Section 214. The assessee further claimed interest on Rs. 4,87,236/- which they had paid on demand on 7-3-1986 under Section 244 (1a) of the Income Tax Act which was not granted by the AO while working out the Order passed by the Appellate Authority. Being aggrieved by the non-granting of interest by the AO, the assessee had carried the matter in appeal which was dismissed as not maintainable under Section 246 (1 ). This Order of the Appellate Authority was confirmed by the Tribunal on the ground that no appeal was maintainable against non-granting of interest under Section 214 or under Section 244 (1a ). Hence, the matter has come by way of reference to this Court at the instance of the assessee.
(3.) ISSUE: Whether appeal under Section 246 (1) (c) was maintainable against refusal to grant interest under Section 214 and Section 244 (1a)? If not, whether appeal was maintainable under Section 246 (1) (f)? ARGUMENTS :;