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2019 (3) TMI 581 - BOMBAY HIGH COURTSettlement Commission Order - invalidation of application for settlement u/s 245D(2C) with retrospective effect - period of limitation - HELD THAT:- Under Section 245D(2C), thus the Settlement Commission could declare an application for settlement invalid, but such order has to be passed within prescribed time. In the present case, the Settlement Commission to overcome such time limit, passed an order giving it retrospective effect. If we recognize the powers of the Settlement Commission to pass such retrospective orders, the time limits envisaged by the legislature at various stages of settlement proceedings would be destroyed. In the present case, the order passed by the Settlement Commission left six days to the Assessing Office to complete the assessments. We wonder what would be the situation if the Settlement Commission had passed such an order six days later than it has done. Be that as it may, we are clearly of the opinion that the Settlement Commission, while giving retrospective effect to its order of invalidation, it acted wholly without jurisdiction. Mr. Mistri, may be justified in wondering if the Settlement Commission while passing order under Section 245D(4) of the Act, in the same order could have given the declaration of invalidity of the application. Two things are however, clear. One, the Settlement Commission has done it and we cannot undo it; uncalled for. Second, though it is a combined order of Settlement Commission, in relation to the concerned assessment year, the Settlement Commission has clearly exercised powers under Section 245D(2C) of the Act. Portion of the order of Settlement Commission giving retrospective effect to the declaration of invalidity of the settlement application is clearly severable from the main order of invalidity. While therefore, striking down this illegal, severable portion of the order, we need not disturb the principle declaration made by the Settlement Commission.
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