Suhas Chandra Sen, J. - (1.) The Tribunal has referred the following question of law under Section 256(1) of the Income-tax Act, 1961 ("the Act"), to this court : "Whether, on the facts and in the circumstances of the case and on a correct interpretation of Section 246 of the Income-tax Act, 1961, the Tribunal was right in holding that an appeal would lie before the Appellate Assistant Commissioner against the levy of interest under Section 139 of the said Act."
(2.) The reference relates to the assessment years 1965-66 and 1966-67.
(3.) The dispute was whether levy of interest was appealable. The Appellate Assistant Commissioner declined to entertain the contention of the assessee on the ground that no appeal lay against the levy was not appealable (sic.). When the matter came up before the Tribunal, the Tribunal held that the dispute as to levy of interest could be raised along with other points in appeal before the Appellate Assistant Commissioner. The Tribunal, therefore, held that the Appellate Assistant Commissioner was not justified in refusing to deal with the assessee's contentions on merits. The order of the Appellate Assistant Commissioner was set aside and restored to his file by the Tribunal for fresh decision on this point.;