M/S.flower Textilesa Partnership Firmrepresented By Its v. Income Tax Settlement Commission, Additional Bench, 640, Anna Salai, Nandanam-600 035

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE MR.JUSTICE M.JAICHANDREN Writ Petition No.8345 of 2009 andM.P.No.1 of 2009 M/s.Flower TextilesA Partnership firmrepresented by its Partner S.SubramaniNo.24, Bridge Way Colony Extension,Tirupur-641 602 Petitioner Vs 1.Income Tax Settlement Commission, Additional Bench, 640, Anna Salai, Nandanam-600 035. 2.Commissioner of Income Tax-III, Coimbatore. 3.The Income Tax Officer, Race Course, Coimbatore 4.The Income Tax Officer Ward I, Tirupur Respondents Prayer: Petition filed under Article 226 of the Constitution of Indiapraying for the issuance of a Writ of Certiorari to call for therecords of the first respondent Income Tax Settlement Commission,Additional Bench, Chennai in its file Settlement ApplicationNo.641/CBE/28/2000-IT for assessment years 1996-97 to 1999-2000 quashthe impugned order dated 06.03.2007 in so far as it relates to theissue of levy of interest u/s 234A, 234B and 234C. For respondents :Mr.J.Narayanasamy 1.This Writ Petition has been filed challenging the impugnedorder of the first respondent, dated 06.03.2007, in so far as itpertains, to the issue relating to the levying of interest, underSections 234A, 234B and 234C to the Income Tax Act, 1961. https://hcservices.ecourts.gov.in/hcservices/ 2. At this stage of the hearing of the Writ Petition, thelearned counsel appearing on behalf of the petitioner had submitted that the impugned order of the first respondent,dated 06.03.2007, inso far as it relates to the levying of interest beyond the Section245D(1) stage of the Income Tax Act,1961, is covered by theconstitutional Bench decision of the Supreme Court, dated 21.10.2010,in Brij Lal and others Vs. Commissioner of Income Tax, in CivilAppeal Nos. 516 to 527 of 2004, wherein it had been concluded asfollows: 16(1)Secs.234A, 234B and 234C areapplicable to the proceedings of theSettlement Commission under Chapter XIX-A ofthe Act to the extent indicated hereinabove.(2)Consequent upon conclusion (1), theterminal point for the levy of interestunder S.234B would be up to the date of theorder under s.245D(1) and not up to the dateof order of Settlement under s.245D(4).(3)The Settlement Commission cannotreopen its concluded proceedings by invokings.154 of the Act so as to levy interestunder s.234B, particularly in view of s.245-I" 3.The learned counsel appearing on behalf of the respondents hadnot refuted the said submission made by the learned counsel appearingon behalf of the petitioner. 4.In such circumstances, the Impugned Order of the firstrespondent, dated 06.03.2007, is set aside, in so far as it relatesto the levying of interest beyond the Section, 245D(1)stage of theIncome Tax Act, 1961. As stated in Paragraph 27 of the impugnedorder, the matter is remitted back to the first respondent tocalculate the interest leviable on the petitioner, upto Section 245 D(1) Stage, as per the decision of the Supreme Court, dated21.10.2010, in Civil Appeal Nos. 516 to 527 of 2004. The firstrespondent shall pass appropriate orders, on the interest leviable onthe petitioner,within a period of four weeks from the date of receiptof a copy of this order, after giving an opportunity of hearing tothe petitioner. This Writ Petition is disposed of with the above directions.Consequently, connected Miscellaneous Petition is closed.Sd/Asst.Registrar /true copy/ arr Sub Asst.Registrar To 1.Income Tax Settlement Commission, Additional Bench, 640, Anna Salai, Nandanam-600 035. 2.Commissioner of Income Tax-III, Coimbatore. Coimbatore. 3.The Income Tax Officer, Race Course, Coimbatore 4.The Income Tax Officer Ward I, Tirupur. Ward I, Tirupur. 1 cc To Mr.J.Narayanaswamy, Advocate, SR.13531.1 cc To Mr.R.Sivaraman, Advocate, SR.13333. SA(CO)RVL 07.04.2011 Writ Petition No.8345 of 2009 and M.P.No.1 of 2009