TMI Blog2012 (3) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... mission could reopen its concluded proceedings by invoking section 154 of the Income Tax Act, 1961 so as to levy interest under Section 234 B of the Act if it was not done in the original proceedings ? 2. In all the cases in hand proceedings have been completed by the Settlement Commission and no interest under Section 234 B of the Income Tax Act, 1961 (for brevity 'the Act') was initially imposed. Facts may be referred from CWP No. 17402 of 2004 where the premises of the petitioner were searched by the Income Tax Department on 10.12.1987 and the cash as well as the account books were seized by the raiding party. The petitioner filed Settlement Application under Section 245 D of the Act before the Income Tax Settlement Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission cannot reopen its concluded proceedings by invoking Section 154 of the Act so as to levy interest under Section 234 B of the Act particularly in view the bar imposed by Section 245 I of the Act. 5. Mr. Rajesh Katoch, learned counsel for the revenue could not successfully controvert the aforesaid argument. 6. Having heard the learned counsel for the parities, we find that the third question posed in the judgement of the Constitution Bench in the case of Brij Lal (supra) squarely covers the issue raised in these petitions. The view of the Constitution Bench is discernible from para 15 of the judgement. According to the ratio of the judgement, proceedings before Settlement Commission are similar to arbitration proceedings. It contemplat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income in which case tax has to be calculated on the aggregate of total income as assessed in the earlier proceedings for assessment under section 143 or under section 144 or under section 147 [see section 245C(1B)].Thus in the computation of additional income tax payable by the assessee, there is no mention of section 154. On the contrary, under section 245-I the order of the Settlement Commission is made final and conclusive on matters mentioned in the application for settlement except in the two cases of fraud and misrepresentation in which case the matter could be re- opened by way of review or recall. Like ITAT, the Settlement Commission is a quasi judicial body. Under section 254(2), the ITAT is given the power to rectify but no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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