Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 1245 - HC - Income TaxLevy of interest u/s 234B by the Income Tax Settlement Commission - Power to levy - effect of amendment to section 234B - Prospective or retrospective - charging the interest on the additional amount of income tax determined under Section 245D(4) - Held that:- As per subsection (4) of section 245D, after examination of the records and the report of the Commissioner, received under subsection (1), and the report, if any, of the Commissioner received under subsection (3), and after giving an opportunity to the applicant and to the Commissioner to be heard, either in person or through a representative duly authorized in this behalf, and after examining such further evidence as may be placed before it or obtained by it, the Settlement Commission may, in accordance with the provisions of this Act, pass such order as it thinks fit on the matters covered by the application and any other matter relating to the case not covered by the application, but referred to in the report of the Commissioner under subsection (1) or subsection (3). Subsection (6) of section 245D provides that every order passed under subsection (4) shall provide for the directions of settlement including any demand by way of tax, penalty or interest, the manner in which any such sum due under the settlement shall be paid and all other matters to make the settlement effective. Under the circumstances, when after the amount is determined by passing the order under Section 245D(4) and the amount so determined exceeds the amount disclosed in the Settlement Commission, in that case, the Settlement Commission is authorized to pass an order of interest. As observed hereinabove, the interest under Section 234B is mandatory. Thus challenges to the impugned order/s passed by the learned Settlement Commission insofar as directing to pay the interest under Section 234B while considering applications filed under Section 245C(1) of the IT Act fails and the same deserve to be dismissed and are, accordingly, dismissed
|