By K. B. Bhujle, Advocate
8 UOI vs. Dodsal Ltd.
[2022] 441 ITR 47 (Bom)
A.Y.: 1989-90; Date of order: 9th December, 2021
Ss. 32A, 156, 220(2), 245D(4) of ITA, 1961
Settlement of cases — Interest u/s 220(2) — Order of Commissioner (Appeals) directing AO to withdraw investment allowance granted u/s 32A set aside by Tribunal — Order passed by Settlement Commission reducing interest u/s 220(2) — Need not be interfered withFor the A. Y. 1989-90, the Assessing Officer passed an order u/s 143(3) of the Income-tax Act, 1961. The assessment order was rectified u/s 154 on 27th July, 1992 revising the total income after allowance of set-off of unabsorbed investment allowance brought forward from the A.Ys. 1986-87, 1987-88 and 1988-89. The assessee made an application u/s 245C before the Settlement Commission, which passed an order u/s 245D(4). The Assessing Officer gave effect to the order u/s 245D(4) and also calculated the interest payable u/s 220(2). The quantum of interest was rectified, and a revised order was passed. The assessee sought rectification of the order passed by the Settlement Commission on the ground that since the order u/s 245D(4) was silent on the point of charging interest u/s 220(2), it should be considered to have been waived. The Settlement Commission held that it did not consider it to be a good case for waiver of interest chargeable u/s 220(2). However, regarding the method of charging of interest, the Settlement Commission d
