2017 (9) TMI 1235

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..... he Act cannot go beyond the stage of S.245D(I) before the Settlement Commission. - Decided in favour of assessee. - Writ Petition Nos. 50321-50328/2015 (T- IT) - - - Dated:- 4-9-2017 - Vineet Kothari, J. For the Petitioner : Jinita Chatterjee For the Respondents : Mr .K. V. Aravind ORDER The grievance made in the present case is that the Assessing Authority while giving appeal effect to the order passed by the Settlement Commission of the Income Tax, has charged excessive interest under Section 234B of the Income Tax Act, 1961 beyond the date of the order passed by the Settlement Commission under Section 245D of the Act in Chapter 20A of the Income Tax Act, 1961. 2. In the present case, the order was passed by the S .....

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..... rower sense elsewhere does not mean that it is so used in the provision under examination. C.A. ABRAHAM v. ITO [1961] 41 ITR 425 (SC) relied on. Section 234B comes into operation when there is default in payment of advance tax, whereas liability to pay interest under section 245D(2C) arises when the additional amount of income-tax is not paid within the time specified in section 245D(2A). Section 245D(6A) imposes liability to pay interest only when the tax payable in pursuance of an order of the Settlement Commission under section 245D(4) is not paid within the specified time. Consequently, section 234B, section 245D(2C) and section 245D(6A) in Chapter XIX-A operate in different fields. When one reads the provisions of sectio .....

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..... erest beyond the date of the application for settlement after it is admitted by the Commission under section 245D(1). There are two distinct stages under Chapter XIX A, and the Legislature had not contemplated levy of interest between the order under the section 245D(1) stage and the section 245D(4) stage. The Settlement Commission cannot reopen its proceedings under section 154 of the Income tax Act, 1961, so as the levy interest under section 234B, particularly in view of section 245-I. 4. Learned counsel for the respondent/department Mr.Aravind has submitted that on the date when the appellate orders was passed by the Assessing Authority for these assessment years on 11.04.2008, the Constitution Bench decision in the case o .....

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