Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 245 C 234A 245D(4) and 245D(6) 208 234B 196/: Sections 2(4) Income Tax Act 234C 142-144 147 220 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Income Tax Act, 1961: Sections 2(4), 142-144, 147, 208, 220, 234A, 234B, 234C, 245 C, 245D(4) and 245D(6): Application disclosing undisclosed income-Default in payment of advance tax-Levy of interest-Period of levying of interest-Held, since assessee defaulted in payment of correct advance tax, interest could be levied under the provisions of the Act-Harmonizing various provision of the Act, vis-a-vis legislative intent in introduction of Chapter XIX-A, the period for D which such interest could be levied starts from I st day of April following relevant financial year up to the date of Order by Settlement Commission-Interpretation of Statutes. Settlement Commissions' power of settlement-Exercise of-Held: Commission assumes jurisdiction of Income-tax Authority after it allows assessee's application till it makes order under Section 245D--Though Commission possess sufficient power in assessing the income of assessee but it can not make any order in conflict with the mandatory provisions on quantum, payment of tax and interest under the Act. Interest charged under Section 234A, B & C and under Section 245 D-Distinction between-Discussed. Introduction of Chapter XIX-A by the Taxation Law (Amendment) Act, 1975 in the Income Tax Act-Implication- Discussed. Legal Maxims: Maxim 'utres magis vaieat quam pereat '-Applicability of-Discussed. Settlement Commission gave certain direction in one of the matters In re. Gulraj Engg. Construction Co. and Ors., (1995) (215) ITR ATS I). Appellant-assessees challenged the same before this Court in the present appeals. The question which arose in these appeals related to the period for which interest in terms of Section 2348 of the Income Tax Act could be levied by the Settlement Commission under the provisions of Section 2450 of the Act. It was contended for the Revenue that as per provision of law under Chapter XIX-A, when assessee filed application disclosing undisclosed income,. the Commission gets exclusive jurisdiction and its order is conclusive; that the expression 'regular assessment' or 're-assessment', as per provisions under Sections 234 A, 8 & C, relate to income which was earlier disclosed before the Income Tax Authorities; that the order passed C by the Commission under Section 2450 (4) and subsequently under subsection (6) are in the nature of original orders determining liability of tax, penalty and interest as also its quantification; and that the liability to pay interest under Sections 234A, B & C are of mandatory nature. It was submitted for the assessee that sub-section (4) of Section 245D D deals with the quantum of interest chargeable with reference to the fix terminus points and it cannot be beyond the date of regular assessment or re-assessment for the purpose of Section 2348 of the Act. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2002 INSC 545 |
Petitioner | Commissioner Of Income Tax |
Respondent | M/s. Hindustan Bulk Carriers |
SCR | [2002] Supp. (5) S.C.R. 387 |
Judgement Date | 2002-12-17 |
Case Number | 7966 |
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