Case Law Details
CIT Vs M.A. Jacob & Company (Madras High Court)
The order passed on the Settlement Applications filed by the assessee is dated 07.01.2000. The second order of ITSC was passed on 19.02.2004. After those orders passed by ITSC on the issue in question, concerning the assessee, in the year 2010, the Honourable Supreme Court had an occasion to deal with the said issue in the case of Brij Lal & Others Vs. CIT, Jalandhar [CDJ 2010 SC 9681. Another Constitution Bench also dealt with the issue and rendered its decision on 18.10.2011 in the case of CIT Vs. Anjum M.H.Ghaswala [20011 119 Taxmann 352/252 ITR 1 . In the said decisions, the Honourable Supreme Court held that the Settlement Commission cannot re-open its concluded proceedings by invoking Section 154 of the Act so as to levy interest under Section 234B in view of Section 245I. The terminal point for the levy of interest under Section 234B would be up to the date of the order under section 245 D (1) and not up to the date of the Order of Settlement under Section 245D(4). Sections 234A, 234B and 234C are applicable to the proceedings of the Settlement Commission under Chapter XIX-A of the Act to a certain extent.
Therefore, even after the above said decision of the Constitution Bench of the Honourable Supreme Court in the case of Brij Lal & Other VS CIT, Jalandhar, the Supreme Court, in the case of Kakadia Builders (P.) Ltd., Vs Income Tax Officer Ward 1(3) ([2019] 102 taxmann.com 53 (SC)), by decision dated March 5, 2019, had an occasion to deal with the issue which is similar to the case on hand, wherein, the Supreme Court held that the Settlement Commission’s order was already held bad in law on the ground that it was passed under Section 154 of the Act, the same was neither in existence for any purpose nor it could be relied upon by the High Court much less for making it a part of their order for issuing a writ. In such circumstances, following the said decision, the subsequent order passed by the Settlement Commissioner rectifying its order insofar as it pertained to waiver of interest, based on the subsequent legal position on the issue, was remanded back to the Settlement Commission.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
This Writ Appeal is filed against the Final order dated 02.08.2017 passed in W.P.No.6566 of 2004. The respondents 1 to 5 herein filed W.P.6566 of 2004 seeking to issue a Writ of Certiorari calling for the records relating to the order dated 19.02.2004 passed by the 2nd respondent/ Income Tax Settlement Commission and quash the same.
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