Wp/28758/2004 Of Sultan Pillai & Sons v. The Income Tax Settlement

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HON'BLE DR.JUSTICE VINEET KOTHARIANDTHE HON'BLE MR.JUSTICE R.SURESH KUMAR Sultan Pillai & SonsMarakkada Road, Trivandrumrep.by its Managing DirectorM.S.Shabeer Ahammed...PetitionerVs.1.The Income Tax Settlement Commission Additional Bench, 488-489, Anna Salai Chennai – 600 035.2.The Union of India represented by The Chairman, Central Board of Direct Taxes, North Block, New Delhi.3.The Commissioner of Income Tax Central Circle, Cochin.4.The Assistant Commissioner of Income Tax Central Circle, Trivandrum.5.The Assistant Commissioner of Income Tax Circle 1(2), Trivandrum....Respondents ----- Prayer: Writ Petition filed under Article 226 of theConstitution of India praying for the issuance of a Writ ofCertiorari to call for the records on the file of the firstrespondent herein in Settlement Application No.13/TVM/72-93-ITand 13/TVM/73/95-II dated 24.03.2004. https://hcservices.ecourts.gov.in/hcservices/ (Order of the Court was made by DR.VINEET KOTHARI,J.) The Assessee M/s.Sultan Pillai & Sons has filed this writpetition aggrieved by the order dated 24.03.2004, by which thelearned Income Tax Settlement Commission, in exercise of theirpowers under Section 245F(1) read with Section 154 of the IncomeTax Act, passed the following order. “ 12.1. In view of the above, it is hereby ordered-(i) that waiver granted u/s 234A is sustained.(ii) that there is no case for waiver of interestunder Section 234B of the Act for any of theassessment years involved.(iii) that the interest u/s.234B shall be chargedupto the date of order under Section 245D(4) ofthe Act.12.2. The miscellaneous petitions filed by theDepartment are allowed.12.3. This also disposes of the remand of the Hon'bleSupreme Court.12.5. The Assessing Officer is authorised to re-compute the interest u/s.234B of the I.T.Act., in viewof the directions given above.” 2. Learned counsel for the petitioner / AssesseeMr.N.Prasad submitted that the order passed by the SettlementCommission, impugned in the present writ petition, deserves tobe interfered with in view of the law laid down by the Hon'bleSupreme Court in the case of “CIT -Vs- M.H.Ghaswala (2002) 1 SCCPage 633” and “Brij Lal -Vs- CIT (2011) 1 S.C.C.Page 1” . Hehas also relied upon a recent decision of the Hon'ble SupremeCourt in the case of “Kakadia Builders (P) Ltd., -Vs- CIT”rendered on 05.03.2019 reported in (2019) 4 S.C.C.Page 453. 3. On the other hand, Mrs.Hema Muralikrishnan, learnedSenior Standing Counsel appearing for the Revenue submittedthat, the impugned order of the learned Settlement Commissionwas passed upon a remand order passed by the Hon'ble SupremeCourt as noted in Para 12.3 in the case of the Assessee himselfand therefore, the same has been passed in pursuance of and incompliance of the remand order of the Hon'ble Supreme Court inaccordance with the position of law then. 4. Having heard the learned counsel for the parties, we aresatisfied that the present impugned order of the Settlement https://hcservices.ecourts.gov.in/hcservices/ Commission does not require any interference by this Court atthis stage. If the Assessee intends to make any submission onthe basis of any subsequent Supreme Court decision, whichaccording to the Assessee is applicable to the facts of thepresent case, he is at liberty to move the Settlement Commissionitself. Since apparently the impugned order has been passed inpursuance of the remand order of the Hon'ble Supreme Courtitself, if there is any subsequent development or law or changeof position of law at the hands of the Hon'ble Supreme Court, itis open to the Assessee to move the Settlement Commission itselffor applying the correct position of law. 5. Therefore, with the aforesaid liberty given to thepetitioner, we are not inclined to interfere with the impugnedorder at this stage. The Writ Petition is disposed ofaccordingly. No costs. 5. Therefore, with the aforesaid liberty given to thepetitioner, we are not inclined to interfere with the impugnedorder at this stage. The Writ Petition is disposed ofaccordingly. No costs. Sd/-Assistant Registrar //True Copy//Sub Assistant RegistrarKSTTo 1.The Income Tax Settlement Commission Additional Bench, 488-489, Anna Salai Chennai – 600 035. 2.The Union of India represented by The Chairman, Central Board of Direct Taxes, North Block, New Delhi. 3.The Commissioner of Income Tax Central Circle, Cochin. 4.The Assistant Commissioner of Income Tax Central Circle, Trivandrum. 5.The Assistant Commissioner of Income Tax Circle 1(2), Trivandrum. +1cc to Mr.N.Inbarajan, Advocate, S.R.No.19423 +1cc to M/s Hema Muralikrishnan, Advocate, S.R.No.19195 adl/30.05.2020 W.P.No.28758 of 2004 https://hcservices.ecourts.gov.in/hcservices/