L.N. Gadodia and Sons (P) Ltd. vs Deputy Commissioner of Income Tax

B.C. Patel, C.J.—These three appeals relate to the asst. yrs. 1985-86, 1986-87 and 1987-88.

Without entering into the controversy whether the appeals as filed are maintainable or a petition under Article 226 is required to be filed, we are disposing of these proceedings.

The Settlement Commission made an order u/s 245D(4) of the IT Act, 1961. In those cases, the Settlement Commission has drawn the computation in great detail and, Therefore, the AO while undertaking the recovery, has to strictly follow the order made by the Settlement Commission and, accordingly, he has to charge interest and not de hors the order made by the Settlement Commission. It is not open for the AO to charge interest u/s 220(2) of the IT Act, 1961, which is not indicated in the Settlement Commission''s order. Accordingly, it is directed that the AO shall reconsider the same strictly in the light of the order made by the Settlement Commission.

In view of this, the orders made by the Tribunal, the first appellate authority, and the AO are quashed and set aside. The appeals are disposed of.