The assessment order\u00a0 was rectified under section\u00a0154\u00a0on July 27, 1992 revising the total income after allowance of set off of unabsorbed investment allowance brought forward from the assessment years 1986-87, 1987-88 and 1988-89. The assessee made an application under section\u00a0245C\u00a0before the Settlement Commission which passed an order under section\u00a0245D(4). The Assessing Officer gave effect to the order under section\u00a0245D(4)\u00a0and also calculated the interest payable under section\u00a0220(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 under section\u00a0245D(4)\u00a0was silent on the point of charging interest under section\u00a0220(2)\u00a0it 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 under section\u00a0220(2). However, regarding the method of charging of interest the Settlement Commission directed the Assessing Officer to take the income as determined by him in his order dated July 27, 1992, adjust it in accordance with its order under section\u00a0245D(4)\u00a0but without withdrawing the benefit of set off of brought forward investment allowance under section\u00a032A. The Department filed\u00a0 petition\u00a0 contending that the Settlement Commission could not have granted the assessee the benefit of set off of brought forward investment allowance. The Settlement Commission rejected the application filed by the Department. On a writ dismissing the petition, that according to the proviso to sub-section (2) of section\u00a0220, once the amount on which interest was charged got extinguished the liability of the assessee to pay interest on such amount would also be extinguished. The order of the Commissioner (Appeals) directing the Assessing Officer to withdraw the investment allowance granted under section\u00a032A\u00a0was set aside by the Tribunal. Therefore, interference with the orders passed by the Settlement Commission reducing the liability of the assessee to pay interest under section\u00a0220(2)\u00a0would result in directing the assessee to pay interest on an amount which had been extinguished and consequently would result in miscarriage of justice. (AY.1989-90)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 220 : Collection and recovery-Assessee deemed in default-Interest-Order of CIT(A) directing to withdraw investment allowance was set aside by the Tribunal-Settlement Commission reducing the interest payable by assessee-Writ of revenue to set aside the order of Settlement Commission was dismissed. [S. 32A, 145, 220(2), 245D(4), Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-26715","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6WT","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26715","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=26715"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26715\/revisions"}],"predecessor-version":[{"id":29088,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/26715\/revisions\/29088"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=26715"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=26715"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=26715"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}