9911796707
TMI Blog2002 (12) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... rcle 1, Patna (respondent No. 5), dated April 18, 2002/May 2, 2002, rejecting the grievance petition dated November 24, 1999, filed by the petitioner in respect of charging of interest under section 245D(6A) for the period May, 1999, to October, 1999. Copies of the demand notice and the said order have been annexed as annexures 7 series and 11, respectively, to the writ application. The necessary facts for disposal of the present writ application are that the petitioner is a doctor engaged in a private practice since 1989. On August 10, 1994, the Income-tax Department made a search and seizure operation on his premises and found undisclosed income. The petitioner filed an application on February 2, 1995, for settlement of the cases for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the Settlement Commission dated January 29, 1999, was received by the petitioner on March 23, 1999, with regard to the relevant period, the petitioner is liable to pay the entire tax within 35 days by April 27, 1999, but as he has not paid the tax within that time, he is liable to pay tax from May, 1999, to October, 1999, and thereafter, further interest for the delayed payment after issuance of a demand notice under section 156 of the Act. Section 245D of the Act contains a provision with regard to the disposal of the application filed for settlement of cases before the Settlement Commission under section 245C of the Act. The final order by the Settlement Commission is passed under sub-section (4) of section 245D of the Act and sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st to be charged as per direction contained in the order. This calculation was done and, thereafter, the demand notices (annexures 7 series) were sent to the petitioner, which have been received admittedly by the petitioner. In view of the nature of the order passed by the Settlement Commission, we are of the view that the period of thirty-five days has to be counted from the date of actual calculation and service of demand notices on the petitioner and not from the date of the order of the Settlement Commission, which can not be given effect to in the absence of the actual calculation having been made in the order. Accordingly, the demand of interest for the period May 1999, to October 1999, in our view, is not permissible in the facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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