National Products vs Commissioner Of Income-Tax, Mysore on 18 March, 1976
Inasmuch as the levy of interest is a part of the process of assessment, it is open to an assessee to dispute the levy in appeal provided he limits himself to the ground that he is not liable to the levy at all, Their Lordships approved the observations of the Karnataka High Court in National Products v. CIT [1977] 108 ITR 935, where the very same question was in issue and the court held that it is open to an assessee to contend in the appeal against an order of assessment that he is not liable to pay advance tax at all or the amount of advance tax determined as payable by the Income-tax Officer is not correct. But if the assessee does not dispute the amount of advance tax determined as payable by the Income-tax Officer, he cannot merely object to the levy of penal interest or question its quantum.