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TMI Blog2018 (8) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter IXA. There is a difference between rectification of an order and review of an order. Such power has to be conferred by statute either expressly or by necessary implication. In this case, there is no power of review. However, the power of rectifying an apparent mistake under Section 154 of the 1961 Act includes wide power to amend the order, which has the effect of enhancing an assessment or increasing the liability of the assessee. Interest under Section 234B of the 1961 Act is to be charged up to the date of order under Section 245D(4) of the 1961 Act. The order of the Settlement Commission that the respondent assessee would be entitled to waiver of interest leviable under Section 234A of the 1961 Act; that there is no case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final order under Section 245D(4) on 25.6.1999, whereby the Settlement Commission reduced the interest chargeable under Section 234B to the extent of 25% for each of the assessment years 1992-1993 and 1993-1994 and the interest chargeable was reduced to the extent of 50% for each of the assessment years 1994-1995 and 1995-1996. The interest was charged up to the date of assessment order/filing of return. 5. Assailing the said order passed by the Settlement Commission waiving/reducing the statutory interest, the Revenue appealed to the Supreme Court. The Supreme Court, vide order dated 12.11.2002 in C.A.Nos.4237-4240 of 2000, referring to its decision in CIT v. Anjum M.H. Ghaswala, reported in (2001) 119 Taxman 352, held that the Settleme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Settlement Commission. By an order dated 12.7.2017, the writ petition has been allowed by the learned Single Bench following its earlier decision in C.V.Mathew v. Income Tax Settlement Commission and others, reported in (2016) 96 CCH 0295. This intra Court appeal is against the said order dated 28.11.2003 passed by the learned Single Bench. 9. Learned Standing Counsel for the Revenue submitted that on the date of passing of the order by the Settlement Commission there was a binding judgment of the Supreme Court in Hindustan Bulk Carrier, supra, holding that interest had to be levied up to the date on which order under Section 234D(4) was passed by the Settlement Commission and, therefore, there was an apparent mistake in the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided. (2) Subject to the other provisions of this section, the authority concerned (a) may make an amendment under sub-section (1) of its own motion, and (b) shall make such amendment for rectifying any such mistake which has been brought to its notice by the assessee or by the deductor or by the collector, and where the authority concerned is the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his section shall be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passed. (8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee or by the deductor or by the collector on or after the 1st day of June, 2001 to an income-tax authority referred to in sub-section (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it, (a) making the amendment; or (b) refusing to allow the claim. 13. Section 245F(1) of the 1961 Act confers on the Settlement Commission all powers which are vested in an Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... effect not only from the date of the decision, but from the inception of the statutory provision. 17. In Geo Miller and Co. Ltd. v. Deputy Commissioner of Income Tax, reported in (2003) 262 ITR 237 (Cal), the Calcutta High Court held that the Explanation added to Rule 1 of Order 47 of the Civil Procedure Code also applies to Section 154 of the 1961 Act. 18. In our considered view, the Settlement Commission rightly found that a later decision of the Supreme Court declaring the correct legal position would render an order passed earlier erroneous. 19. Interest under Section 234B of the 1961 Act is to be charged up to the date of order under Section 245D(4) of the 1961 Act. The order of the Settlement Commission that the respondent as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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