HOTEL HAMILTON COMPLEX REPRESENTED BY ITS MANAGING PARTNER M C MOHAMMED YAHYA Vs. INCOME TAX SETTLEMENT COMMISSION

JUDGEMENT

(1.) The grievance made in the present case is that the Assessing Authority while giving appeal effect to the order passed by the Settlement Commission of the Income Tax, has charged excessive interest under Section 234B of the Income Tax Act, 1961 beyond the date of the order passed by the Settlement Commission under Section 245D of the Act in Chapter 20A of the Income Tax Act, 1961.

(2.) In the present case, the order was passed by the Settlement Commission on 11.03.2008 for the block of the Assessment Years 1989-1990 to 1996- 1997. While appeal effect orders was passed by the Assessing Authority on 11.04.2008 vide Annexure 'B' series, he has charged interest under Section 234B of the Act apparently beyond the date of the order passed by the Settlement Commission on 11.03.2008.

(3.) Learned counsel for the petitioner relied upon the Judgment of the Constitution Bench of the Supreme Court in the case of BRIJ LAL & ORS. Vs COMMISSIONER OF INCOME TAX, 2010 328 ITR 477 decided on 21.10.2010 in which the Hon'ble Supreme Court interalia, disapproving the earlier decision in the case of CIT vs Hindustan Bulk Carriers, 2003 179 CTR(SC) 362 (SC)), held as under: