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2014 (5) TMI 9 - GUJARAT HIGH COURTValidity of interest charged beyond the scope of section 245D - order of settlement commission – Held that;- Assessee had all along kept its application to the interest being charged u/s 245D(1) alive - It may be that under mistaken bona fide belief that Settlement Commission has power of rectification, he filed such application before the Commission and such application came to be dismissed - application remained pending before the Commission for long number of years - the Commission has rejected the application on the ground that there was no error in the original order and also that it does not have the power of rectification – the assessee cannot be precluded from questioning the AO’s interpretation and implementation of the Commission's order. The Commission never required the AO to charge interest de-horse the statutory scheme - the assessee had no choice but to question the very base order of the AO misapplying the directions of the Settlement Commission - the assessee all along kept his challenge alive - He cannot be penalised for his application before the Settlement Commission remaining pending nearly for a decade – thus, the order of the AO dated 4.2.2003 giving effect to the orders passed by the Settlement Commission are set aside to the extent order provides for charging interest from the respective petitioners u/s 234B and 234C of the Act beyond the stage of section 245D(1) – Decided in favour of Assessee.
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