PEERLESS GENERAL FINANCE & INVESTMENT COMPANY LIMI Vs. INCOME TAX SETTLEMENT COMMISSION, ADDITIONAL BENCH

JUDGEMENT

(1.) The writ petitioners have challenged an Order dated March 25, 2010 passed by the Settlement Commission under Section 245F(1) read with Section 154 of the Income Tax Act, 1961.

(2.) By the impugned order the Settlement Commission has refused to rectify computation of interest under Sections 234B and 234C pursuant to its order of settlement of income under Section 245D(4) of the Income Tax Act, 1961 dated February 13, 2009. By the impugned order the Settlement Commission had also refused to waive interest under Section 220(2) of the Income Tax Act, 1961.

(3.) It is contended on behalf of the writ petitioners that, Chapter XIXA of the Income Tax Act, 1961 is a self-contained code. Once an assessee invokes the provisions of settlement under the Income Tax Act, 1961 and pays the enhanced income tax consequent upon the revised income tax return, the date when the Settlement Commission admits such request of the assessee, such date should be considered as the terminus for the calculation of interest. Sections 234B and 234C would not apply for a period subsequent to an order under Section 245D(1) of the Act of 1961. It is contended that, the law on this subject is settled by the Supreme Court in (Brij Lal v. Commissioner of Income-tax, 2010 328 ITR 477). This Court has also followed Brij Lal in the judgment and order dated February 2, 2015 delivered in W.P. No. 44 of 2015 (G.M. Foods & Another v. Income Tax & Wealth Tax Settlement Commissioner).