Allowed

M/S.Transworld Hire Purchase India Ltd. v. the Settlement Commission

Kerala HC8 Jun 2016WA/1172/2005

Case brief

AI extract

What is this about?

The High Court allowed writ appeals against earlier judgments that upheld the power of the Settlement Commissioner to levy interest. Relying on a subsequent Constitution Bench judgment of the Supreme Court in Brij Lal, the Court held that the Settlement Commissioner cannot reopen concluded proceedings under Chapter XIX-A to invoke Section 154 for levying interest.

What did the court decide?

Judgments under appeal set aside; declared that Settlement Commissioner cannot reopen concluded proceedings to levy interest.

M/S.Transworld Hire Purchase India Ltd. Vs the Settlement Commission — Income Tax | Kerala HC (2016)

¶1

IN THE HIGH COURT OF KERALA AT ERNAKULAM

¶2

PRESENT:

¶3

THE HONOURABLE MR.JUSTICE ANTONY DOMINIC &

¶4

THE HONOURABLE MR. JUSTICE DAMA SESHADRI NAIDU

¶5

WEDNESDAY, THE 8TH DAY OF JUNE 2016/18TH JYAISHTA, 1938

¶6

WA.No. 1172 of 2005 (C) IN WP(C).6848/2005

¶7

AGAINST THE ORDER/JUDGMENT IN WP(C) 6848/2005 of HIGH COURT OF KERALA DATED 08-04-2005

¶8

APPELLANT(S)/PETITIONER:

¶9

M/S.TRANSWORLD HIRE PURCHASE INDIA LTD BUSINESS LANE, BEACH ROAD, KOLLAM-691001,, THROUGH ITS MANAGING DIRECTOR,, SHRI.M.K.SUNDARAN PILLAI.

¶10

BY ADV. SRI.DALE P.KURIEN

¶11

RESPONDENT(S)/RESPONDENTS:

¶12

THE SETTLEMENT COMMISSION ADDITIONAL BENCH, CHENNAI.

¶13

CENTRAL BOARD OF DIRECT TAXES, BY ITS CHAIRMAN AT NEW DELHI.

¶14

R. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) R. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX

¶15

THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 08-06-2016, ALONG WITH WA. 1264/2005 AND CONNECTED CASES,, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

¶16

APPENDIX IN WA.1172/05

¶17

APPELLANT'S EXHIBITS:

¶18

ANNEXURE A: TRUE COPY OF THE AFFIDAVIT FILED AS IA.NO.1780/05 IN WPC.560/05 DATED 2.2.2005

¶19

/TRUE COPY/

¶20

PS TO JUDGE

¶21

ANTONY DOMINIC & DAMA SESHADRI NAIDU, JJ.

¶22

----------------------------------W.A.Nos.1172, 1264, 1286, 1288, 1397 & 1407 of 2005 ----------------------------------Dated this the 8^th day of June, 2016

¶23

JUDGMENT

¶24

Antony Dominic, J.

¶25

In these writ appeals filed by the assessees, the question raised is whether the settlement Commissioner has power to invoke section 154 of the Income Tax Act so as to levy interest. In the judgments under appeal, this Court rejected the challenge and uphold the power of the Settlement Commissioner, following the judgment of this Court in Andrew Nettikkadan v. Asst. Commissioner of Income- tax [(2004) 266 ITR 708]. It is aggrieved by these judgments, the appeals are filed.

¶26

2.During the pendency of these appeals, the Constitution Bench of the Apex Court in its judgment in Brij Lal v. Commissioner of Income-tax [(2010) 328 ITR 477] has concluded the issue by holding thus:

¶27

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

¶28

WA.1172/05 & con. cases

¶29

¶30

(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 245D(1) and not up to the date of the Order of Settlement under section 245D(4).

¶31

(3) The Settlement Commission cannot reopen its concluded proceedings by invoking section 154 of the Act so as to levy interest under section 234B, particularly, in view of section 245-I.”

¶32

3.In view of the above authoritative pronouncement of the Apex Court, the judgments under appeal cannot be sustained. Therefore, the judgments under appeal are set aside and it is declared that the Settlement Commissioner cannot reopen its concluded proceedings by invoking section 154 of the Income Tax Act so as to levy interest.

¶33

Appeals are allowed.

¶34

Sd/ANTONY DOMINIC, Judge.

¶35

Sd/DAMA SESHADRI NAIDU, Judge.

¶36

kkb.

M/S.Transworld Hire Purchase India Ltd. v. the Settlement Commission

Case brief

What is this about?

What did the court decide?

M/S.Transworld Hire Purchase India Ltd. v. the Settlement Commission

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The Commissioner of Income Tax Vs P.P.Bhaskaran

P.Vilasini Devi Vs P.Subhadra G.Nambiar

The Manager Vs a.Ratnakaran

The Commissioner of Income Tax, Vs M/S.Coconut Palm Beach Garden

State of Kerala Vs K.Pushpadas

Secretary, General Education Department Vs C.R.Devaki