2015 (3) TMI 13

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....nt of demand by the assessee till the date of admission of application by the assessee by settlement Commission under section 245D(1) and not till the final order of settlement commission under section 245D (4)?" 2) The relevant facts can be briefly narrated as under : The case of the respondent/assessee was taken up for assessement within the framework of Section 158BD of the Income-Tax Act, 1961. The assessment was made on 30.1.2002 determining undisclosed income @ Rs. 1,40,02,500/-. In the course of said proceeding, the assessee had filed application before Settlement Commission on 11.5.2001. The application was admitted by the Settlement Commission under section 245D (1) on 16th September, 2002. Final order was passed by the Settleme....

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....ord and on elaborate consideration of the matter, taking into account relevant provisions of IncomeTax Act, particularly provisions of Section 220 and 245D and the legal position as emerging from the decision referred to above namely, CIT vs Damani Brothers reported in 259 ITR 478, held that interest under Section 220 (2) would be legally leviable from the date of demand raised in assessment before admission of application for settlement under section 245D (1). However, if the demand stands reduced under order of Settlement Commission, interest would undergo revision correspondingly, Accordingly under its order dated 26th March, 2009 the Tribunal purported to correct the order of the Commissioner of Income Tax (Appeals) and considered th....