Whether settlement commission has power to reduce interest payable under provisions of sections 234A, 234B & 234C of IT Act, 1961

Last updated: 29 November 2022
Quick Summary
The Supreme Court has ruled that the Settlement Commission does not possess the authority to reduce or waive statutory interest payable under sections 234A, 234B, and 234C of the Income Tax Act, 1961. While the Commission can grant relief under specific Board circulars (Section 119), it cannot override the mandatory interest provisions. Consequently, matters involving such interest waivers have been remanded back to the Settlement Commission for fresh consideration.

Court :
Apex Court

Brief :
Provisions of Section 245(4) & (6) nowhere confer power to reduce or waive statutory liability of payment of interest u/s 234A, 234B & 234D by the settlement commission.

Citation :

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