SMRITI PROPERTIES PVT LTD Vs. SETTLEMENT COMMISSION

JUDGEMENT

(1.) All these matters were heard together as the points involved therein are identically the same. Therefore, the decision to be rendered will cover all these four matters.

(2.) The facts are more or less identical. On different dates the learned Settlement Commission of the Income-tax Department accepted the proposal of the assessees for settlement of the cases and dues of the respective petitioners. In the case of Smriti Properties Private Ltd., the assessment years related to 1989-90 to 1994-95 and the orders were passed by the Settlement Commission by the Bench of three learned members on March 16, 1999. By the said order, interest which would ordinarily have been chargeable under the various provisions of the said Act was either partially or fully waived.

(3.) On March 10, 2003, the income-tax authorities filed a miscellaneous petition before the Commission whereby it was contended on behalf of the Revenue that the said orders need rectification in view of the decision of the apex court rendered in the case of Hindustan Bulk Carriers. By this judgment the apex court reversing the earlier decision of the same court rendered in the case of Gulraj Engineering Construction Co., held that the Settlement Commission has no jurisdiction to waive interest. Since it was a question of jurisdiction of the Settlement Commission the direction for waiver of interest either partially or fully needed to be reviewed. Therefore the earlier order of the Commission was mistaken, as it would appear from the records, so far as the interest portion is concerned.