| Case ID |
1a812ab0-f49e-4e14-ae4a-d79ca7c72acf |
| Body |
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| Case Number |
SPECIAL CIVIL APPLICATION No. 2896 OF 1996 |
| Decision Date |
Mar 03, 2008 |
| Hearing Date |
|
| Decision |
The Gujarat High Court held that the Settlement Commission exercises powers of an income-tax authority under section 245F of the Income Tax Act, 1961. It can impose interest liability under section 234B even when the income was not disclosed earlier to the Assessing Officer. The court found that the Commission could fasten the liability for interest on the portion of income forming part of the total income as determined by the Commission, even if no interest would have been leviable if the originally disclosed income was considered in isolation. The petitioners' claims were ultimately rejected, reaffirming the Commission's authority to levy interest under the relevant sections of the Income Tax Act. |
| Summary |
This case revolves around the interpretation of the Income Tax Act, 1961, specifically concerning the powers of the Income Tax Settlement Commission. The Gujarat High Court examined whether the Commission could levy interest under section 234B for undisclosed income during assessment years 1989-90 and 1990-91. The court concluded that the Settlement Commission indeed has the authority to impose such interest, emphasizing that the Commission's orders are treated as regular assessments for interest calculation purposes. This decision aligns with precedents set in CIT v. Hindustan Bulk Carriers and other relevant cases, establishing a robust framework for understanding the Commission's role in income tax assessments. Keywords: Income Tax Act, Settlement Commission, Gujarat High Court, interest liability, undisclosed income, assessment years, tax law. |
| Court |
Gujarat High Court
|
| Entities Involved |
Not available
|
| Judges |
D.A. MEHTA,
Z.K. SAIYED
|
| Lawyers |
K.H. Kaji,
B.B. Naik
|
| Petitioners |
Sahitya Mudranalaya
|
| Respondents |
Income Tax Settlement Commission
|
| Citations |
2009 SLD 2249,
(2009) 312 ITR 115,
(2008) 175 TAXMAN 30
|
| Other Citations |
CIT v. Hindustan Bulk Carriers [2003] 259 ITR 449/ 126 Taxman 321,
CIT v. Haripada Khatua [1998] 230 ITR 560 (Cal.),
Modi Industries Ltd. v. CIT [1995] 216 ITR 759/ 82 Taxman 377 (SC),
CIT v. Anjum M.H. Ghaswala [2001] 252 ITR 1/ 119 Taxman 352(SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
234B,
245D,
245F
|