9911796707
TMI Blog2023 (5) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 is in respect of the applications filed by petitioner no.2. The Commission has held that in terms of Sub-clause (iv) of Clause (b) of Section 245A of the Act, the assessment proceedings in respect of the Assessment Years 2012-13 and 2013-14, were concluded. And, there was no 'case' existing in respect of the Assessment Years 2012-13 and 2013-14. Consequently, the applications for settlement of case(s) under Section 245C of the Act, in respect of those Assessment Years, was not maintainable. 3. In terms of Section 245C (1) of the Act, an assessee is entitled to make an application for settlement "at any stage of a case relating to him". Thus, the question that falls for consideration of this Court is whether there was a case (or cases) relating to the petitioners, in respect of the Assessment Years 2012-13 and 2013-14. 4. Briefly stated, the controversy arises in the following context: 4.1 The petitioners had filed their respective applications under Section 245C (1) of the Act on 15.12.2016 in respect of the Assessment Years 2012-13 to 2016-17. The Commission passed an order dated 22.12.2016 under Section 245D(1) of the Act, allowing the applications to proceed in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) of Section 245A of the Act and therefore, the applications in respect of the said assessment year were not valid. Reasons and Conclusion 7. As noted above, the petitioners had filed their respective applications before the Commission on 15.12.2016. Thus, concededly, the provisions of Chapter XIX-A of the Act relating to settlement of cases as in force on that date are relevant in determining whether the case relating to the petitioners existed on that date. Clause (b) of Section 245A of the Act as amended by the Finance Act, 2015, and in force at the material time is set out below: "245A. In this Chapter, unless the context otherwise requires, - (a) xxx xxx xxx (b) "case" means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made. Explanation. - For the purposes of this clause- (i) a proceeding for assessment or reassessment or re-computation under section 147 shall be deemed to have commenced- (a) from the date on which a notice under section 148 is issued for any assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 245A(b) of the Act would be pending in respect of assessment, reassessment or re-computation under Section 147 of the Act, in respect of which no such notice has been issued, only if the following two conditions are met: first, that a notice has been issued under Section 148 of the Act in respect of any other assessment year; and second, that a notice under Section 148 could be issued if a return under Section 139 of the Act or in response to Section 142 of the Act has been filed. 9. In the facts of the present case, no notice under Section 148 of the Act was issued to the petitioners at the material time in respect of any of the assessment years; therefore, the time for making the application as well as on the date of passing the impugned order dated 06.02.2017, there were no proceedings pending for re-opening any assessment for any of the assessment years for which the applications were made, that is, for Assessment Years 2012-13 to 2016-17. However, the applications in respect of Assessment Years 2014-15, 2015-16, and 2016-17 were maintainable because in terms of Explanation (iv) the proceedings for the said Assessment Years were not concluded as on 15.12.2016, that is, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment or reassessment of any person in respect of any year or years, or by way of appeal or revision in connection with such assessment or reassessment, which may be pending before an income-tax authority on the date on which an application under sub-section (1) of section 245C is made: Provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the filing of such appeal or application for revision under this Act and which has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause;" 13. Clause (b) of Section 245A of the Act was substituted by the Finance Act, 2007. The said clause as substituted, reads as under:- "245A. In this Chapter, unless the context otherwise requires.- (b) "case" means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made: Provided that- (i) a proceeding for assessment or reassessment or recomputation under section 147; (ii) a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date on which the notice under Section 148 of the Act is issued. 15. Section 245A(b) of the Act was amended by the Finance Act, 2010 and proviso (ii) and (iii) as well as Explanation (ii) to Clause (b) of Section 245A of the Act were deleted. There were other amendments to the said clause, however, the same are not relevant for the purpose of the present petition. Proviso (i) to Clause (b) of Section 245A of the Act as well as Explanation (i) to Clause (b) of Section 245A of the Act remained unaltered. 16. By virtue of the Finance Act, 2014, the proviso to Clause (b) of Section 245A of the Act was deleted, however, the Explanation continued to remain. Clause (b) of Section 245A of the Act, after the Finance Act, 2014 came into force, reads as under:- "245A. In this Chapter, unless the context otherwise requires- (b) "case" means any proceeding for assessment under this Act, of any person in respect of any assessment year or assessment years which may be pending before an Assessing Officer on the date on which an application under sub-section (1) of section 245C is made. [***] Explanation-For the purposes of this clause- (i) a proceeding for assessment or reasses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 139 of the Act and pursuant to a notice under Section 148 of the Act. In respect of assessment proceedings under Section 143 of the Act, the Assessing Officer has the jurisdiction to examine the returns and pass an assessment order within a period of two years from the end of the relevant assessment years. However, in cases where income has escaped the assessment, the same can be reopened only upto a specified period and subject to certain conditions being satisfied. However, the possibility that proceedings for assessment, reassessment or re-computation of income may be initiated under Section 147 of the Act, after an assessment has been framed or the period of framing assessment has lapsed, cannot be construed to mean that a case is pending under Clause (b) of Section 245A of the Act. In Commissioner of Income Tax v. Income Tax Settlement Commission (supra), this Court had explained the above in the following words. "9. The expression "pending" in this case, has to be viewed contextually. In plain terms, it would mean when some case, cause or controversy is actually pending consideration before the assessment officer. In the facts of this case, the assessee filed its return ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
