TMI Blog2015 (3) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in assessment before admission of application for settlement under section 245D (1). However, if the demand stands reduced under order of Settlement Commission, interest would undergo revision correspondingly. The position as far as charging interest under Section 220 (2) is concerned is no longer res integra. It has been made clear under the decision in the case of Damani Brothers (supra) as also in the decision of Brij Lal and Ors v. Commissioner of Incometax reported in [2010 (10) TMI 8 - SUPREME COURT ] observing till the Settlement Commission decides to admit the case under section 245D (1) the proceedings under the normal provisions remain open. But, once the Commission admits the case after being satisfied that the disclosure i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he application was admitted by the Settlement Commission under section 245D (1) on 16th September, 2002. Final order was passed by the Settlement Commission on 30th September, 2002 disposing of the application. The undisclosed income under the same decreased to ₹ 32,20,000/-. The Assessee had paid the demand within 30 days. 3) On 14th December, 2005 the Assistant Commissioner, Income-tax, Circle XVIII, Mumbai issued a demand purporting to give effect to the order under section 245D (4) charging and levying interest under Section 220 (2) of Income-Tax Act, 1961 from the date of assessment order - 30th January, 2002 to 30th September, 2005 - the date of order passed by the Settlement Commission. As such the matter before the Income-T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly under its order dated 26th March, 2009 the Tribunal purported to correct the order of the Commissioner of Income Tax (Appeals) and considered that it would not be proper to say that order of the Assessing Officer would not survive after application under section 245 D (1) is decided to be proceeded with, observing thus, It was accordingly held that Incometax authorities were free to proceed in the prescribed manner till the Commission decided to proceed with the application under section 245D (1). The assessment order passed by the Assessing Officer prior to the admission of the application for settlement will subsist and recovery proceedings will continue. Hon'ble Supreme Court further observed that the assessment did not get au ..... X X X X Extracts X X X X X X X X Extracts X X X X
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