Punjab-Haryana High Court
Sh. Mahesh Kumar Jain vs Income Tax Settlement Commission And ... on 15 May, 2012
Bench: Hemant Gupta, A.N. Jindal
Civil Writ Petition No. 16731 of 2008 (O&M) 1
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
Date of decision:- 15.05.2012
(1) Civil Writ Petition No. 16731 of 2008 (O&M)
Sh. Mahesh Kumar Jain
....Petitioner
Vs.
Income Tax Settlement Commission and others
....Respondents
(2) Civil Writ Petition No. 16748 of 2008 (O&M)
Sh. Basant Kumar Jain
....Petitioner
Vs.
Income Tax Settlement Commission and others
....Respondents
(3) Civil Writ Petition No. 16781 of 2008 (O&M)
Smt. Vandita Jain
....Petitioner
Vs.
Income Tax Settlement Commission and others
....Respondents
(4) Civil Writ Petition No. 9603 of 2003
M/s Sant Ram Mangat Ram
....Petitioner
Vs.
Income Tax Settlement Commission and others
....Respondents
Civil Writ Petition No. 16731 of 2008 (O&M) 2
CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA
HON'BLE MR. JUSTICE A.N. JINDAL
Present: Mr. Akshay Bhan, Advocate,
and Mr. Alok Mittal, Advocate,
for the petitioner(s).
Mr. Rajesh Katoch, Advocate,
for the respondents.
HEMANT GUPTA, J. (Oral)
This order shall dispose of Civil Writ Petition Nos.16731, 16748, 16781 of 2008 and 9603 of 2003, as common questions of law and facts are involved in all these cases. For reference, facts are taken from Civil Writ Petition No.16731 of 2008.
Challenge in the present writ petition is to the order dated 31.03.2003 (Annexure P-4), whereby the Settlement Commission withdrew the partial/full waiver of interest under Section 234B and 234C of the Income Tax Act, 1961 (for short ' the Act) and directed that interests under Section 234B and 234C of the Act will be charged strictly as per law.
The question, whether the Settlement Commission can reopen its concluded proceedings by recourse to Section 154 of the Act, came up before the Hon'ble Supreme Court in case Brij Lal and others Vs. Commissioner of Income-Tax, (2010) 328 ITR 477, wherein while deciding question No.3, it has been held that after the Settlement Commission allows the application for settlement to be proceeded with, there will be no further charge of interest under Section 234B and that invocation of Section 154 of the Act cannot be justified.
Civil Writ Petition No. 16731 of 2008 (O&M) 3
In view of the said decision, the present petitions are allowed. The order dated 31.03.2003 (Annexure P-4) and the subsequent proceedings raising demand of interest are quashed.
(HEMANT GUPTA)
JUDGE
(A.N. JINDAL)
May 15, 2012 JUDGE
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