COMNR. OF SALES TAX, U.P. vs S/S NEW INDIA INSURANCE CO. LTD.

The Supreme Court held that the Settlement Commission, constituted under Section 245B of the Income-tax Act, 1961, has the jurisdiction to waive or reduce interest chargeable under Sections 234A, 234B, and 234C while passing settlement orders under Section 245D(4). The Court overruled the earlier decision of a 5-Member Special Bench of the Commission, affirming the view of a larger 7-Member Bench that the Commission's powers include such waivers as part of its mandate to facilitate compromise and settlement. The ruling emphasized the purposive interpretation of the Commission's powers as an income-tax authority under Section 245A(d).