Interest u/s 234A to 234C applicable to settlement commission proceedings, it is payable only up to the s. 245D(1) order and cannot be levied u/s 154

Brij Lal & Ors Vs. CIT (Supreme Court) – A five-judge Constitution bench of the Supreme Court last week ruled that the settlement commission under the Income Tax Act cannot reopen concluded proceedings under Section 154 (‘rectification of mistakes’) so as to levy interest on default in payment of advance tax. Assessment in law is different from assessment by way of settlement. “Every order of settlement passed under Section 245D(4) shall be final as to the matters contained therein and the same shall not be re-opened except in case of fraud and misrepresentation,” the bench h...