KAKADIA BUILDERS PVT. LTD. & ANR. versus INCOME TAX OFFICER WARD 1(3) & ANR.

KAKADIA BUILDERS PVT. LTD. & ANR. versus INCOME TAX OFFICER WARD 1(3) & ANR.

The High Court erred in adopting and making part of its order the directions contained in the Settlement Commission's rectification order dated 11.10.2002 which had been set aside as issued under Section 154; accordingly the High Court's modification of the Settlement Commission's original order dated 11.08.2000 insofar as it reversed the waiver of interest was without jurisdiction. The impugned High Court order and the Settlement Commission order dated 11.08.2000 are set aside to the extent they decided waiver of interest and the matter is remanded to the Settlement Commission to decide the issue afresh in light of Ghaswala and Brij Lal after affording opportunity to the parties.

Parties
Appellants: KAKADIA BUILDERS PVT. LTD. & ANR.; Respondents: INCOME TAX OFFICER WARD 1(3) & ANR.
Jurisdiction
India
Judgment Date
05 March 2019
Procedural Posture
Civil Appeal / Appeal From High Court Judgment and Order Dated 28.07.2016 in Special Civil Application Nos.7814 and 7820 of 2014
Outcome
Appeals allowed; impugned High Court order and Settlement Commission order dated 11.08.2000 set aside to the extent they decided waiver of interest; matter remanded to Settlement Commission to decide waiver of interest afresh.
Legal Topics
Settlement Commission, Waiver of Interest Under Sections 234 A/234 B/234 C, Section 154 Rectification, Remand
Income Tax Act, 1961 Tax Law Administrative Law Settlement Commission Waiver of Interest Under Sections 234 A/234 B/234 C Section 154 Rectification Remand

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Parties

KAKADIA BUILDERS PVT. LTD. & ANR.

Appellants

INCOME TAX OFFICER WARD 1(3) & ANR.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment and Order Dated 28.07.2016 in Special Civil Application Nos.7814 and 7820 of 2014

Legal Issues

  1. 1 Whether the Settlement Commission has power to waive or reduce interest under Sections 234A, 234B and 234C of the Income Tax Act, 1961
  2. 2 Whether the Settlement Commission can reopen concluded proceedings by invoking Section 154 of the Act
  3. 3 Whether the High Court could adopt directions contained in the Settlement Commission's rectification order dated 11.10.2002 and make them part of its order modifying the Settlement Commission's original order dated 11.08.2000

Ratio Decidendi

The High Court erred in adopting and making part of its order the directions contained in the Settlement Commission's rectification order dated 11.10.2002 which had been set aside as issued under Section 154; accordingly the High Court's modification of the Settlement Commission's original order dated 11.08.2000 insofar as it reversed the waiver of interest was without jurisdiction. The impugned High Court order and the Settlement Commission order dated 11.08.2000 are set aside to the extent they decided waiver of interest and the matter is remanded to the Settlement Commission to decide the issue afresh in light of Ghaswala and Brij Lal after affording opportunity to the parties.

Court Disposition

Appeals allowed; impugned High Court order and Settlement Commission order dated 11.08.2000 set aside to the extent they decided waiver of interest; matter remanded to Settlement Commission to decide waiver of interest afresh.

Orders

  • Appeals allowed.
  • The impugned order dated 28.07.2016 passed by the High Court and the Settlement Commission order dated 11.08.2000 in Settlement Application Nos.10/S/095/95-96/IT & 10/S/029/95-96/IT are set aside to the extent they decided the issue relating to waiver of interest.