LexCOMMISSIONER OF INCOME TAX versus M/S. HINDUSTAN BULK CARRIERS
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
j _I COMMISSIONER OF INCOME TAX V. A MIS. HINDUSTAN BULK CARRIERS DECEMBER 17, 2002 [M.B. SHAH, ARIJIT PASAYAT AND D.M. DHARMADHIKARI, JJ.] B Income Tax Act, 196/: Sections 2(4), 142-144, 147, 208, 220, 234A, 234B, 234C, 245 C, 245D(4) and 245D(6): C 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-8'-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 r~levant financial year up to the date of Order by Settlement Commission- fnterpretation of Statutes. Settlement Commissions' power of settlement-Exercise of-Held: Commission assumes jurisdiction of Income-tax Authority after it allows E 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-- F 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 G of-Discussed. Settlement Com mission gave certain direction in one of the matters Jn re. Gu/raj Engg. Construction Co. and Ors., (1995) (215) ITR ATS I). Appellant-assessees challenged the same before this Court in the present appeals. 387 H 388 SUPREME COURT REPORTS (2002) SUPP. 5 S.C.R. A 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 B 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 sub- section (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, 8 & 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. Partly allowing the appeals, the Court E HELD: Per Pasayat, J. : I. Interest chargeable under Sections 234A, 2348 and 234C of the Income Tax Act relate to three different types of infractions. In the instant case, the dispute relates to the period for which interest is chargeable under Section 2348 of the Act. The levy is attracted where subject to other F provi,sions in the Section in any financial year an assessee, who is liable to pay the advance tax under Section 208, has failed to pay such tax or where advance tax paid by such assessee under the provisions of Section 210 is less than ninety per cent of the assessed tax. The beginning point is first day of April next following the relevant financial year. Different end points G are prescribed. They are (i) up to the date of determination of total income under sub-section (I) of Section 143; (ii) the date of regular assessment when a regular assessment is made and (iii) where there is an order of re- assessment or re-computation under Section 147, or the difference of assessed income on re-assessment or re-computation and originally assessed income till date of re-assessment or re-computation. H (397-F, 398-A, 8, 400-A-C) C.I.T. v. HIND.1.JSTAN BULK CARRIERS 389 1.2. In addition to the powers conferred on the Settlement A Commission under Chapter XIX-A of the Act, the Settlement' Com mission has all the powers which are vested in the i
Excerpt shown. Read the full judgment & AI analysis in Lexace.