2024 (11) TMI 1469 - HC - Income Tax

Direction to the Interim Board for Settlement (IBS) to adjudicate settlement applications on merits - HELD THAT - Although at the time of filing these appeals before us the contention of the revenue was that they had preferred an SLP against the Judgment in Jain Metal Rolling Mills s case 2024 (9) TMI 101 - SC ORDER before the Supreme Court we are now informed that the SLP so preferred by the revenue has been dismissed by the Supreme Court. Under the circumstances we find that the decision of the Madras High Court that was relied upon by the learned Single Judge has attained finality. This being the case we see no reason to prolong an adjudication on merits on the settlement applications that were rejected by the interim Board for Settlement in these cases which led to the filing of the writ petitions aforementioned. We therefore dismiss the Writ Appeals and direct the Interim Board for Settlement to take up the applications preferred by the applicants for adjudication on merits as was directed by this court based on the decision of the Division Bench of the Madras High Court in Jain Metal Rolling Mills s case (supra).

Summary

The Kerala High Court, in appeals by the revenue challenging a Single Judge's order dated 19.12.2023, upheld the direction to the Interim Board for Settlement (IBS) to adjudicate settlement applications on merits. The Single Judge had set aside IBS orders rejecting applications for assessment years 2014-15 to 2020-21 as not maintainable, relying on the Madras High Court Division Bench judgment in Jain Metal Rolling Mills v. Union of India [(2023) 156 taxmann.com 513 (Madras)]. The Court noted that the revenue's Special Leave Petition against the Madras High Court decision was dismissed by the Supreme Court, rendering that precedent final. Consequently, the High Court dismissed the writ appeals and directed the IBS to consider the settlement applications on merits "as was directed by this court based on the decision of the Division Bench of the Madras High Court in Jain Metal Rolling Mills's case."