- (1.) This writ petition is filed at the instance of the Department challenging an order dated 30th August, 2012 passed by the Settlement Commission under section 154 and section 245D(6B) of the Income Tax Act, 1961. An application was made by the private respondent before the Settlement Commission under section 245C of the said Act pertaining to assessment years 2004-05 to 2011-12. It is not in dispute that the application was entertained by the Settlement Commission and ultimately by an order dated 14th March, 2012 the Settlement Commission passed the following orders: "44. Regarding the terms of settlement, the first term is relating to the determination of total income of the applicant. The applicant's total income is computed as above. 45. As regards the second term, the applicant prayed for waiver of interest chargeable under any section of the Income Tax Act, 1961. Such prayer of the applicant i.e., waiver of interest, is not allowed. The interest will have to be charged as per law by the Assessing Officer keeping the view the decision of the Hon'ble Supreme Court in Civil Appeal No. 516-527 of 2004 dated 21.10.2010 in the case of Brij Lal & Ors. v. CIT, Jalandhar, 2010 328 ITR 477). 46. Regarding granting of immunity from penalty and prosecution under various sections of the Income Tax Act, 1961, the same is granted so far as the same relates to issues dealt with in this order of settlement. 47. The fourth term is residual. The A.R. prayed that an amount of Rs. 15,00,000/- was seized from the applicant and had been kept in the custody of the Commissioner. The same may be adjusted against the tax liability and in this regard, suitable direction may be issued to the Assessing Officer. The A.O. will do the needful in this regard and the applicant will pay the balance tax in two equal monthly installments. The A.O. will issue demand notice accordingly. However, interest for delayed payment of taxes is to be charged u/s. 245D(6A) of the I.T. Act at the time of last installment of payment by the applicant."
(2.) The parties did not feel any difficulty in understanding the said order except the prayer portion. The Settlement Commission refused the prayer of the assessee/private respondent for waiver of the interest and allowed the interest to be charged by the Assessing Officer in the light of the decisions rendered in the case of Brij Lal & Ors. v. Commissioner of Income-Tax, Jalandhar, 2010 328 ITR 477 (SC). The mater went back to the Assessing Officer for the purpose of compliance of the directions made in the said order passed by the Settlement Commission for computation. The Assessing Officer charged the interest for the entire period which was not in conformity with the ratio laid down by the Supreme Court in the case of Brij Lal & Ors. .
(3.) The petitioner filed an application before the Settlement Commission under section 245D(6B) for appropriate directions. The said provision provides for rectification of any mistake apparent on the face of the record by the Settlement Commission provided where the Settlement Commission feels that amendment is required to be effected in relation to the liability of the assessee. It would do so after giving an opportunity of hearing to the assessee as well as the Commissioner.;