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TMI Blog2015 (2) TMI 855X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission (Income Tax Wealth Tax), Additional Bench, Kolkata is directed to pass an appropriate order on the basis of this order following Brij Lal reported in [SUPRA ] wherein held the terminal point for the levy of interest under section 234B would be up to the date of the order under section 245D[1] and not up to the date of the order of settlement under section 245D[4] - Decided in favour of assessee. - WP No. 44 of 2015 - - - Dated:- 2-2-2015 - The Hon'ble Justice I. P. Mukerji,JJ. For the Petitioner : Mr. S. Pal, senior advocate, Ms. M. Agarwal, Mr. B. Manot For the Respondent : Ms. S. Das De ORDER The Court : The order of the Income Tax Settlement Commission Principal Bench dated 12th November, 2014 has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1] and not up to the date of the order of settlement under section 245D[4]. Now, while dealing with the present case the Commission referred to the judgment of the Hon ble Supreme Court in Brij Lal at internal page 29 of its judgment. The tribunal went to the extent of saying that the judgment in Brij Lal was obiter dicta. That was the reason for the tribunal not following it. The relevant passage from the judgment of the tribunal is quoted below : The question raised in Brij Lal s case related only to the terminal point for levy of interest u/s 234B. The observations of Apex Court have to be read in the context of question being decided. Where the obiter dicta is in conflict with another decision of the Supreme Court, the ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ether Section 234B was mandatory in nature and whether the Settlement Commission had any authority to waive it. Referring to this decision of Ghaswala the five Judges Bench of the Supreme Court pronounced its decision in Brij Lal. This was rubbished by the Commission by saying that the law was to be found in Ghaswala and that the principles for charging interest under Section 234B and section 245D[1] were other than that decided in Brij Lal. This is not appreciated at all, by this court. Moreover, the Supreme Court in the case of Municipal Committee, Amritsar vs. Hazara Singh reported in AIR 1975 SC 1087 has expressly approved a passage that even a dictum of the Supreme Court rendered obiter was binding on the Courts below. I will qu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 245D(1) as held in the case of Brij Lal. Interest is also to be charged on the income determined by the Commission it its order under Section 245D(4) of the Income Tax Act, 1961 in confirmity with the Special Bench s order dated 12.11.2014 Therefore, the order of the Special Bench of the Commission dated 12th November, 2014 and that of the additional Bench, Kolkata dated 30th December, 2014 are quashed and set aside. The Settlement Commission (Income Tax Wealth Tax), Additional Bench, Kolkata is directed to pass an appropriate order on the basis of this order following Brij Lal reported in (2010) 328 ITR 477 (SC) within six weeks of communication of this order. No affidavits were invited as all the records of the case were bef ..... X X X X Extracts X X X X X X X X Extracts X X X X
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