2003 (1) TMI 10 - SC - Income Tax

Whether the Settlement Commission has power to waive mandatory interest as contemplated under sections 234A, 234B and 234C of the Income-tax Act- In view of the judgment in Ghaswala s case, answer to question is given in negative - revenue s appeals are allowed and the impugned order passed by the Settlement Commission is set aside

Summary

The Supreme Court ordered the appellant to pay Rs. 10,000 as costs for a delay in filing special leave petitions. The appeal was against a judgment limiting waiver of interest under section 234B of the Income-tax Act to 50%. The court held that the Settlement Commission cannot waive mandatory interest under sections 234A, 234B, and 234C. The impugned order was set aside, allowing the Revenue to recover interest as per the Act, with no costs imposed.