IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 24.02.2011 CORAM THE HON'BLE MR.JUSTICE M.JAICHANDREN Writ Petition No.8340 of 2009 and M.P.No.1 of 2009 Mr.S.Subramani Petitioner Vs 1.Income Tax Settlement Commission, Additional Bench, 640, Anna Salai, Nandanam-600 035. 2.Commissioner of Income Tax-III, Coimbatore. 3.The Income Tax Officer, Race Course, Coimbatore 4.The Income Tax Officer Ward I, Tirupur Respondents Prayer: Petition filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari to call for the records of the first respondent Income Tax Settlement Commission, Additional Bench, Chennai, in its file Settlement Application No.641/CBE/29/2000-IT for assessment years 1996-97 to 1999-2000 quash the impugned order dated 06.03.2007 in so far as it relates to the issue of levy of interest u/s 234A, 234B and 234C. For petitioner :Mr.R.Sivaraman For respondents :Mr.J.Narayanasamy O R D E R 1.This Writ Petition has been filed challenging the impugned order of the first respondent, dated 06.03.2007, in so far as it pertains, to the issue relating to the levying of interest, under Sections 234A, 234B and 234C to the Income Tax Act, 1961. 2. At this stage of the hearing of the Writ Petition, the learned counsel appearing on behalf of the petitioner had submitted that the impugned order of the first respondent,dated 06.03.2007, in so far as it relates to the levying of interest beyond the Section 245D(1) stage of the Income Tax Act,1961, is covered by the constitutional Bench decision of the Supreme Court, dated 21.10.2010, https://hcservices.ecourts.gov.in/hcservices/ in Brij Lal and others Vs. Commissioner of Income Tax, in Civil Appeal Nos. 516 to 527 of 2004, wherein it had been concluded as follows: 16(1)Secs.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. (2)Consequent upon conclusion (1), the terminal point for the levy of interest under S.234B would be up to the date of the order under s.245D(1) and not up to the date of order of Settlement under s.245D(4). (3)The Settlement Commission cannot reopen its concluded proceedings by invoking s.154 of the Act so as to levy interest under s.234B, particularly in view of s.245- I" 3.The learned counsel appearing on behalf of the respondents had not refuted the said submission made by the learned counsel appearing on behalf of the petitioner. 4.In such circumstances, the Impugned Order of the first respondent, dated 06.03.2007, is set aside, in so far as it relates to the levying of interest beyond the Section, 245D(1)stage of the Income Tax Act, 1961. As stated in Paragraph 27 of the impugned order, the matter is remitted back to the first respondent to calculate the interest leviable on the petitioner, upto Section 245 D (1) Stage, as per the decision of the Supreme Court, dated 21.10.2010, in Civil Appeal Nos. 516 to 527 of 2004. The first respondent shall pass appropriate orders, on the interest leviable on the petitioner,within a period of four weeks from the date of receipt of a copy of this order, after giving an opportunity of hearing to the petitioner. This Writ Petition is disposed of with the above directions. Consequently, connected Miscellaneous Petition is closed. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar arr To 1.Income Tax Settlement Commission, Additional Bench, 640, Anna Salai, Nandanam-600 035. https://hcservices.ecourts.gov.in/hcservices/ 2.Commissioner of Income Tax-III, Coimbatore. 3.The Income Tax Officer, Race Course, Coimbatore. 4.The Income Tax Officer Ward I, Tirupur. 1 cc To Mr.J.Narayanaswamy, Advocate, SR.13535. 1 cc To Mr.R.Sivaraman, Advocate, SR.13328. Writ Petition No.8340 of 2009 and M.P.No.1 of 2009 SA(CO) RVL 07.04.2011 https://hcservices.ecourts.gov.in/hcservices/