BRIJ LAL & ORS. v. COMMI~ SIONER OF INCOME TAX, JALANDHAR

1220 SUPREME COURT REPORTS [2010] 11 S.C.R.

A for which interest has to be paid under section 234B on the deficit is the date on which the Settlement Commission passes the order under section 2450(4). This decision was delivered on 17.12.2002 after the judgment of this Court in Ghaswala (supra). On the same day, the same Bench in the case of B Damani Brothers (supra) held that interest charged under section 234B becomes payable on the income disclosed in the return and the income disclosed before the Settlement Commission; that, such interest is chargeable till the Commission acts in terms of section 2450(1) and that after the c Settlement Commission allows the application for settlement to be proceeded with there will be no further charge of interest under section 234B. Thus, even on the question of terminus there was lot of controversy a;:;cnn the circumstances, we are of the -view that invocation of section 154 (held to be inapplicable to Chapter XIX-A proceedings) cannot be justified. 0 Conclusions :

16Copy pinpoint16. (1) Sections 234A, 234B and 234C are applicable to the proceedings of the Settlement Commission under Chapter E XIX-A of the Act to the extent indicated hereinabove.

(2)-Consequent upon conclusion (1 ), the terminal point for the levy of interest under section 234B would be up to the date of the order under section 2450(1) and not up to the date of F the Order of Settlement under section 2450(4) .

. (3) The Settlement Commission cannot re-open its concluded proceedings by invoking section 154 of the Act so as to levy interest under section 234B, particularly, in view of · section 2451. G

17Copy pinpoint17. Accordingly, Reference to the Constitution Bench vide orders dated 14.12.2004 and 20.1.2005 stands duly answered and the matters are_ accordingly disposed of. )

R.P. Reference answered and Appeals disposed of. H