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2022 (3) TMI 1565 - CALCUTTA HIGH COURTAssessment u/s 153A - effect of ceasure of ITSC - Scope of challenge to the amendment to the Act - writ petitions were dismissed at the admission stage holding that the order passed by the Settlement Commission rejecting the applications was legal and valid - appellants challenged the circular issued by CBDT dated 28.09.2021 which permitted the assessees to file applications before the Settlement Commission not later than 30.09.2021 as being discriminatory and violative of Article 14 of the Constitution of India and also the amendment to Income Tax Act by which the Settlement Commission was abolished with effect from 01.02.2021 Commission opined that in the assessees’ case notice u/s 153(A) of the Act was issued on 02.02.2021 and as such the relevant assessment proceedings were not pending as on 31.01.2021 and, therefore, the assessee were directed to show cause as to why the applications filed on 08.03.2021 should not be rejected as no relevant assessment proceedings were pending as on 31.01.2021 (that is before 01.02.2021). HELD THAT:- In our view, all legal issues can be considered only after the respondents file their affidavit-in-opposition. Thus, we are of the view that the writ petitions should not have been dismissed at the admission stage and should have been heard after calling for affidavits as pure questions of law are needed to be first answered before proceeding into factual matrix. We are inclined to entertain these appeals and, accordingly, these appeals are admitted. The assessing officer has already issued notices u/s 153(A) of the Act on 02.02.2021 and thereafter also issued fresh notices. Since, we have admitted the appeals; the notices issued by the assessing officer under Section 153(A) of the Act shall remain stayed till the disposal of the appeals. Respondent authorities pointed out that the assessment will get time barred by 31.03.2022 and, therefore, the assessing officer should be permitted to proceed further in the matter. The said objection is not sustainable because the explanation under Section 153(B) of the Act states that the period during which the assessment proceedings is stayed by an order or an injunction of any court stands excluded while computing period of limitation under Section 153(B) of the Act. Therefore, the Revenue’s interest is sufficiently safeguarded. That apart, we also take note of the fact that the assessees by filing applications before the Settlement Commission has admitted additional income and also remitted tax and interest on the additional income so admitted. This also would go to safeguard the interest of the Revenue. Hence, the notices issued by the assessing officer remain stayed.
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