Section 220, read with section 264, of the Income-tax Act, 1961 - Collection and recovery of tax

IT: Where petitioner had been called upon to pay interest under section 220(2), demand having been raised consequent to order passed by Settlement Commission, computation of period for purpose of levy of interest could not be adjudicated in a writ petition and, hence, petitioner was to be directed to file a revision before Commissioner under section 264
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[2015] 54 taxmann.com 315 (Madras)
HIGH COURT OF MADRAS
Vaata Infra Ltd.
v.
Income-tax Officer, Company Ward-III (1), Chennai*
T.S. SIVAGNANAM, J.
W.P. NO. 8604 OF 2014
OCTOBER  27, 2014
Section 220, read with section 264, of the Income-tax Act, 1961 - Collection and recovery of tax - When assessee deemed in default (Interest under section 220(2)) - Consequent to order passed by Settlement Commission, impugned proceedings were passed calling upon petitioner to pay interest under section 220(2) - Petitioner contended that respondents had admitted that demand had been paid on various dates and was fully paid in July 2007; therefore, question of demanding interest consequent to order of Commission in 2008 did not arise - Whether since demand had been raised consequent to order passed by Settlement Commission, computation of period for purpose of levy of interest could not be adjudicated in a writ petition and, hence, petitioner was to be directed to file a revision before Commissioner under section 264 - Held, yes [Paras 10, 18, 19 & 25][In favour of revenue]