B.S.Dhillon, J.

1. For the assessment year 1966-67 the ITO, Jullundur, assessed the company to a total income of Rs. 1,87,298, Since the ITO was of the view that the advance tax paid by the assessee fell short by more than 25 per cent. of the tax found to have been payable by it, he ordered penal interest to be charged on the outstanding amount of tax.

2. The assessee went up in appeal. The AAC gave it relief of Rs. 37,278 about the quantum of its total income, but declined to grant any relief regarding payment of penal interest on the following ground:

"In the last ground, charge of interest Under Section 215 is challenged. This ground is incompetent as there is no provision for appeal Under Section 246 against the charge of interest. The same is, accordingly, dismissed."

3. The assessee went in appeal before the Income-tax Appellate Tribunal, Amritsar Bench (hereinafter referred to as "the Tribunal"), which allowed the same and, qua the relief of interest, observed as under:

"The last ground by the assessee in this appeal is that the Appellate Assistant Commissioner was not justified in holding that the charge of interest under Section 215 of the Income-tax Act, 1