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2019 (1) TMI 1090 - HC - Income TaxLiability to pay interest u/s 234B(2A) - retrospective legislation - whether the Settlement Commission could waive mandatory interest under Section 234 B or under similar provisions, namely Section 234A and Section 234C of the Act? - primary contention of the petitioner is that sub-section (2A) to Section 234 B introduced by the Finance Act, 2015 is not retrospective and would not be applicable as the petitioner had filed the application for settlement before sub-section (2A) to Section 234B was enacted - Held that:- Referring to the sub-section (2A) to Section 234B and examine whether same states that it would be applicable to pending proceedings Clause (a) of the said Sub-Section states that where an application under Sub-Section 245C for any assessment year has been made, the assessee shall be liable to pay simple interest at the rate specified for every month or part of the month comprised in the period commencing on 1st day of April of the assessment year and ending with the date of making such application. This refers to the application that has been made. It would apply to all applications that have been made. Clause (b) states that whereas as a result of order of the Settlement Commission in Sub-Section (4) to Section 245D the amount of total income disclosed in the application under Sub-Section (1) to Section 245C is increased, the assessee would be liable to pay simple interest for every month or part of the month comprised in the period commencing from 1st day of April of such assessment year and ending with the date of the order on the amount by which the tax on the total income determined on the basis of such order exceeds the tax on the total income disclosed in the application filed under Sub-section (1) to Section 245C of the Act. The provision clearly uses the present tense i.e. where application under Sub-Section (1) to Section 245C of the assessment year has been made. Clause (a) is therefore clearly intended to cases where application was pending and orders had not been passed when sub-section (2A) to Section 234B was enacted. Clause (b) refers to the date of order i.e. as a result of Sub-Section (4) to Section 245D of the Act, which should be after insertion of sub-section (2A) to Section 234B of the Act. As a sequitur and consequence it would follow that the amendment was intended to apply to all pending proceedings in which orders under Section 245 D(4) are passed after sub-section (2A) was introduced and made part of the Statute. The intendment of the legislature is therefore, clear and it would apply to pending proceedings. Therefore the second principle as per the above dictum is applicable. Accordingly, we hold that sub-section (2A) to Section 234B would be applicable to all proceedings in which orders are pending and /or in which orders under Section 245 D (4) are passed on or after 1st June, 2015. WP dismissed.
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