No appeal lies against an order imposing penal interest under S. 18-A (6) of the Act.

( 1 ) THE Income-tax Appelate Tribunal, Madras Branch referred for the opinion of this Court the following questions :"whether an appeal to the Appellate Assistant Commissioner against the levy of penal interest under the provisions of S. 18-A (6) is competent?"

( 2 ) THE facts are in a small compass and they are : The assessee carried on business in the manufacture and sale of groundnut oil, and cake. In making the assessment for the year 1945-46, the Income-tax Officer arrived at an assessable income of Rs. 40,739. 00 as the assessee gave a wrong estimate of the income, he directed him to pay penal interest at 6 per cent under S. 18-A (6) of the Act upon the amount by which the tax already paid by him fell short of 80 percent. of the tax imposed on the basis of the regular assessment. The assessee preferred an appeal against the order of assessment to the Appellate Assistant Commissioner and contended, inter alia, that the order imposing penal interest was wrong, but the appeal was dismissed. When he carried on appeal the said matter, the Income-tax Appellate Tribunal confirmed the ground that no appal lay against an order under S. 18-A of the Act. The aforesaid question was referred under the said circumstances.

( 3 ) THE learned counsel for the assessee contended that an order imposing penal interest is part of the order of assessment and therefore an appeal lies under S. 30 of the Act. To appreciate his argument, the following provisions may be read :section 18 - A (6) :"where in any year an assessee had paid tax under Sub-s. (2) or Sub-s. (3) on the basis of his own estimate and the tax so paid is less than 80 per cent, of the tax determined on the basis of the regular assessment. . . . . . . . . . . . . . . . . . simple interest at the rate of 6 per cent, per annum from the 1st day of January in the financial year, in which the tax was paid, up to the date of the said regular assessment shall be payable by the assessee upon the amount by which the tax so paid fails short of the said eighty per cent. "section 18-A (8) :"where on making the regular asessment, the Income-tax Officer finds that no payment of tax has been made in accordance with the foregoing provisions of this section, interest calculated in the manner laid down in sub-s. (6) shall be added to the tax as determined on the basis of the regular assessment. "section 23 (3) :"on the day specified in the notice issue under sub-s. (2) or as soon afterwards as may be, the Income-tax Officer, after hearing such evidence as such person may produce, and such other evidence as person may produce, and such other evidence as the Income-tax Officer may require, on specified points, shall, by an order in writing , assess the total income of the assessee and determine the sum payable by him on the basis of such assessment". Section 29 :"when any tax penalty or interest is due in consequence of an order passed under or in pursuance of this Act, the Income-tax Officer shall serve upon the assessee or other person liable to pay such tax, penalty or interest, a notice of demand in the prescribed form specifying the sum so payable. "section 30 : "any assessed under S. 23 or S. 27 or the amount of loss computed under S. 24 or the amount of tax determined under S. 23 or S. 27 or denying his liability to be assessed under this Act, or objecting to the cancellation by an Income-tax Officer of the registration of a firm under sub-s.

( 4 ) OF S. 23 or to a refusal to register a firm under sub. s. (4) of S. 23 or S. 26-A or to make a fresh assessment under S. 27 or objecting to any order under sub-s. (2) of S. 25 or S. 28-A or sub-s. (2) of S. 26 or S. 28 made by an Income-tax Officer or objecting to any penalty imposed by an Income-tax Officer under sub-s. (6) of S. 44 - E or sub-s.

( 5 ) ). 44 - F or sub-s. (I) of S. 46 or objecting to a refusal of an Income-tax officer to allow a claim to a refund under S. 48, 49 or 49-F or to the amount of the refund allowed by the Incom