A YOUNUS KUNJU Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The relevant assessment year involved in the above appeal is 1985-86. The issue revolves around the completion of assessment subsequent to disposal of an application filed by the appellant assessee under Section 245C by the Settlement Commission at Chennai. Original assessment came to be completed under Section 143(3) of the Income Tax Act on 28.03.1988 so far as this particular assessment year. Meanwhile, Settlement Commission after admitting the application filed by the assessee settled the matter as per order dated 29.06.1993.

(2.) In pursuance of the order of the Settlement Commission, Chennai, the assessing officer completed the assessment proceedings and passed an order dated 26.06.1994. A notice came to be issued by the assessing officer under Section 154 and proceeded to levy interest apart from indicating the correct share of income from a partnership firm in which assessee was a partner and opined that no objection statement came to be filed by the appellant assessee. This order of the assessing officer, i.e. the rectification order after levying interest under Section 220(2) further withdrawing the interest earlier granted under Section 244(1)A came to be challenged before the Commissioner of Income Tax(Appeals).

(3.) The Commissioner of Income Tax(Appeals) dismissed the appeal considering the grievance of the appellant assessee with regard to levying interest under Section 220(2) in a detailed discussion at paragraph 5 of the order of Commissioner of Income Tax(Appeals). This order came to be challenged before the Appellate Tribunal raising several grounds. However, without touching the merits of the orders passed by the Commissioner of Income Tax(Appeals), Tribunal opined that the proceedings initiated by the assessing officer were the consequence of orders by Settlement Commission and Tribunal cannot examine any of the issues involving the matter subjected to the assessment. This order of the Tribunal is under challenge before us.