Section 245 d(6a)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 Dear Sir,
We have recieved an order from Income tax settlement commission u/s 245D(4) on 30/08/2011. In the said order an addition in income of Rs. 1 cr has been made by the commission.The Commission has given to pay the tax on additional income with in 3 months from the date of order.
HowevertThe commission has not calculated any tax liability on additional Income but it directed to respective assessing officer to calculate the tax and issue the demand accordingly.
Assessing officer has calculated the tax on additional income and levied interest u/s 245D(6A)for non payment of tax with in 35 days from the date of order dated 30/08/2011. when we argued for levied interest u/s 245D(6A) THE a o said that no you have to pay interest as per demand because section 245D(6A) is applicable from the date of order as passed by the Settlement Commission.
But my view is that if we have not recd any demand from the department how we can make payment.
Secondly whether An order passed by settlement commission without mentioning any tax liability is a complete order for levieng interest u/s 245D(6A).

Kindly give me advice as soon as possible

Thankin you

CA Pravin Singh

anurag

anurag (Expert)
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13 December 2011 Interest is payable even if the settlement commission has extended the period.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 so what is the effective date for exclusion of 35 days

order passed by Settlement commission

or

Order passed by A O by to giving effect to settlement Commission

Pravin Singh

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anurag

anurag (Expert)
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13 December 2011 order passed by settlement commission.
(this is an interpretation only, no caselaw to support, u can fight for 35 days)