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2023 (7) TMI 1284 - BOMBAY HIGH COURTApplication for settlement of cases u/s 245C - Application abated in accordance with the provisions of Section 245HA(1)(ii) - as mandated additional tax on the income disclosed in such application and the interest thereon had to be paid on or before 31st day of July, 2007 - HELD THAT:- Petitioner had complied with the provisions of Section 245D(2D) of the Act by paying the additional tax and interest on the income disclosed by him in his Applications before 31st July, 2007 as per his calculations, as required by Section 245D(2D) of the Act, and that is what was required of the Petitioner. Therefore, his Applications have to be allowed to be further proceeded with. This is more so, as, at no point of time prior to 31st July, 2007, the Respondents intimated to the Petitioner that the taxes and interest paid by him on the additional income disclosed by him in his Applications were not correct. In our view, the fact that Respondent No. 2 intimated to the Petitioner by his letter dated 18th December 2007 what, according to Respondent No. 2, was the correct tax and interest to be paid by the Petitioner under the provisions of Section 245D(2D is irrelevant. It is absurd to interpret the provisions of Section 245D(2D) as suggested by Respondents. How is one expected to know before 31st July 2007, the figure disclosed only in December 2007. Therefore, it says “disclosed in the application.” Thus the Order which holds that the proceedings arising out of the two Applications filed by the Petitioner had abated in accordance with provisions of Section 245HA(1)(ii) of the Act, is erroneous and contrary to the provisions of Section 245D (2D) of the Act. Petitioner had complied with the requirements of Section 245D(2D) of the Act, Respondent No. 1 ought to have allowed the Applications of the Petitioner to be further proceeded with and wrongly came to the conclusion that the same had abated in accordance with the provisions of Section 245HA(1)(ii) .
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