SAHITYA MUDRANALAYA Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) THIS petition has been preferred by as many as 11 petitioners challenging orders dated 28. 03. 1995 and 11. 09. 1995 made by the Settlement Commission (hereinafter referred to as 'the Commission' ). The following reliefs have been prayed for:

(2.) BROADLY the reliefs prayed for can be divided into two issues: whether the petitioners are liable to be charged interest for Assessment Years 1989-1990 and 1990-1991 under Section 234b of the Income-tax Act, 1961 (the Act) in cases where under Section 234b (1) of the Act, no interest was leviable? AND whether the petitioners, whose assessment have been re-opened in exercise of powers under Section 245e of the Act by the Commission, are liable to pay interest for Assessment Years 1985-1986 to 1988-1989 under Sections 139 (8), 215 and 217 of the Act ?

(3.) UNDISPUTED facts are that the petitioners preferred settlement applications on 01. 02. 1991 under Section 245c of the Act. On 18. 10. 1991 the Commission permitted the applications moved by the petitioners to be proceeded with in exercise of powers under Section 245d (1) of the Act. On 26. 02. 1993 the Commission passed final order under Section 245d (4) read with Section 245e of the Act. Vide orders made between 26th to 28th July, 1993, the Assessing Officer (AO) raised various demands giving effect to the consolidated order of the Commission dated 26. 02. 1993. On 14. 09. 1993 the petitioners moved the Commission seeking rectification / modification / clarification of the order dated 26. 02. 1993 in relation to the aforesaid two issues alongwith other issues.