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2019 (5) TMI 640 - HC - Income TaxExtension of limitation - due date of passing order by Settlement Commission within eighteen months from the date of filing the applications - time taken by the petitioners in pursuing the remedy before High court would be excluded - earlier application was rejected by Commission which was restored by High Court - HELD THAT: - Sub-section (4A) of section 245D mandates that the Settlement Commission passes an order u/s 245D(4) within eighteen months from the end of the month in which the application was made which period would be over on 31st May, and 30th June respectively. In this case, the Settlement Commission passed orders u/s 245D(2C) treating the applications made by the petitioners to be invalid. Against such orders, the petitioners approached this court by way of writ petitions, which came to be allowed by a judgment and order dated 4.2.2019 whereby the orders dated 2.2.2018 came to be set aside and the matters were restored to the file of the Settlement Commission. However, the operation of the judgment and order dated 4.2.2019 was stayed for a further period of four weeks so as to enable the respondent to approach the superior forum. Thus, for the period between 2.2.2018 till four weeks after 4.2.2019, there were no applications pending before the Settlement Commission and such applications were restored to the file of the Settlement Commission only pursuant to the order of this court. Therefore, the period between 2.2.2018 to four weeks after 4.2.2019 when the applications stood disposed of, cannot be taken into consideration for the purpose of computing the period of eighteen months as contemplated u/s 245D(4A). It is held that the period from 2.2.2018 to four weeks after 4.2.2019 shall stand excluded while computing the period of eighteen months for passing the order under section 245D(4). Needless to state that the Settlement Commission should not wait for the entire period of eighteen months for passing the order u/s 245D(4), to be over and may decide the application as expeditiously as possible - petitions are allowed
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