Income-Tax Officer vs Ajay Sanjay (Huf) on 29 May, 1989
Further according to the Madras High Court in the case of T.U.S.C. Ltd. v. CIT 126 ITR 125, no appeal lies from the order of the ITO refusing interest due to the assessee under Section 214 and the appeal would lie only as part of appeal against assessment itself. The proper remedy of the assessee in such case is to file revision to Commissioner. Since the sum and substance of the present appeal is ITO's refusal to grant interest under Section 214 the appeal cannot be entertained in law since Section 246 of the IT. Act does not provide for an appeal from an order of the ITO determining the interest payable by the Government or by the assessee under Section 214 or Section 215 or Section 217. In view of the above reasons, the appeal is rejected.