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2009 (8) TMI 834 - HC - Income TaxInterest under section 220(2) read with section 245D(6A) of the Act - submissions of appellant that the order of the Settlement Commission is very vague on the issue of charging of interest as it is not clarified as to from which period the interest is charged – Held that:- After the expiry of the period of 30 days from the date of the order and/or demand notice, the interest under section 220(2) is payable. Thus, the starting point of charging of interest is known. The order of the Assessing Officer is merged to the order of the Settlement Commission and whatever amount is deter- mined by the Settlement Commission interest is payable on that amount. - Under section 245D(6A), liability to pay interest is fastened when tax payable pursuant to an order under section-245D(4) is not paid within the specified time. Keeping this provisions in mind, the Settlement Commission has directed to charge interest under section 220(2) up to the date of order under section 245D(4) of the Act. While disposing of the rectification application, the Settlement Commission has made it clear that if the petitioner is of the opinion that there is computational error in determination of the quantum of interest under section 220(2) leviable in its case, appropriate remedy may have to be sought by way of rectification/ revisional proceedings before the income-tax authority. - Decided against the assessee. Regarding undervaluation of closing stock – Held that:- There was no change in the method of valuation of raw material/closing stock and the same was uniformly and consistently followed as in the earlier years and the issue of valuation of closing stock should be taken up in regular assessment proceedings and not in block assessment proceedings - Matter remanded to the Settlement Commission with a direction to re-examine this issue
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