Words "amount on which interest was payable under sub-section (1) or sub-section 3" do not impose a condition that for interest to be attracted under section 234B(4) interest should actually be levied under original order of assessment under sub-section (1)

ORAL JUDGEMENT (PER DR. D.Y. CHANDRACHUD, J.) :

Rule, by consent returnable forthwith. With the consent of Counsel and at their request the Petition is taken up for hearing and final disposal. The issue which arises in these proceedings is whether the Settlement Commission, when it passes an order under Section 245D of the Income Tax Act, 1961, can award interest under Section 234B even though no interest was chargeable under the original order of assessment. Section 234B(4) provides, among other things, that

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