TMI Blog2017 (8) TMI 614X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 (8) TMI 657 - MADRAS HIGH COURT] answered the issue in favour of assessee wherein held that Sub-section (1) of Section 245(F) which states that Settlement Commission shall have all powers which are vested in Income Tax Authority under the Act cannot be read in isolation but it should be red in tandem with Section 245(I) and if it is done, then it is to be held that there is no power of review conferred on the Commission to reopen the proceedings. This position held the field till an amendment was inserted under Section 6(b) of Section 245D by Finance Act 2011 with effect from 01.06.2011. Even the said provision is not a power of review. But, the phraseology used by the legislation is 'rectification'and such rectification can be done on an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondents : Mr.A.P. Srinivas ORDER Heard Mr.Kumarpal R.Chopra, learned counsel for the petitioners and Mr.A.P.Srinivasan, learned Senior Standing counsel for the respondents. 2. The petitioners have filed this writ petition challenging the order passed by the 2nd respondent, namely, the Income Tax Settlement Commission, dated 19.02.2004. 3. In respect of the assessment years 1988-89 to 1992-93, relating to petitioner Nos. 1 to 4 and for the assessment year 1995-96, relating to the fifth petitioner, the Settlement Commission passed a consolidated order dated 07.01.2000 under Section 245D(4) of the Income Tax Act, 1961. The effect of the said order is granting waiver of interest under Sections 234A 234B. In the said orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tively in a concluded matter is unknown to law. Further, it was contended that the 1st respondent cannot be allowed to go back on a settlement already arrived at before the Settlement Commission, before whom certain voluntary disclosures were made by the petitioners only on account of the fact that it would be conclusive and there would be an end to all disputes. Inspite of such contest before the Settlement Commission, the Settlement Commission has passed the impugned order and has re-opened the earlier order passed by it. This has been challenged by the petitioners before this Court in this writ petition. 4. In an identical circumstance, in the case of R. Vijayalakshmi V. Income Tax Settlement Commission, Addl. Bench 488/489, Anna Sala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commission shall have all powers which are vested in Income Tax Authority under the Act cannot be read in isolation but it should be red in tandem with Section 245(I) and if it is done, then it is to be held that there is no power of review conferred on the Commission to reopen the proceedings. This position held the field till an amendment was inserted under Section 6(b) of Section 245D by Finance Act 2011 with effect from 01.06.2011. Even the said provision is not a power of review. But, the phraseology used by the legislation is 'rectification'and such rectification can be done on any mistake apparent from the record. Therefore, such power exercisable under sub Section 6D of Section 245D can be exercised only to rectify a mistake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l date for charging of interest under Section 234B. Admittedly, these decisions were rendered by the Hon'ble Supreme Court much after the final order was passed by the Commission under Section 245D(4). 10. Rudimentary legal principle is that subsequent development of law cannot be a ground to exercise review jurisdiction and that cannot be taken into consideration as an error apparent on the face of the record. Hence, on that ground also, the Department should be non-suited. Hence, for all the above, order of the Settlement Commission is held to be unsustainable and it is accordingly quashed.... 5. The Revenue does not dispute the legal principle laid down in the above decision, which has been followed by this Court in severa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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