COMNR. OF INCOME TAX, MUMBAI vs M/S DAMANI BROTHERS

The Supreme Court addressed the powers of the Settlement Commission under the Income Tax Act, 1961, specifically regarding Sections 245D(4) and 220(2). The Court held that the orders of lower authorities do not automatically get set aside by the Commission's order; rather, they are modified to give effect to the Commission's determination. Furthermore, the Commission has the authority to waive or reduce interest under Section 220(2) post-determination of tax liability, affirming the principle of merger in tax assessments.