ATHARVA BUILDERS AND DEVELOPERS vs. INCOME TAX SETTLEMENT COMMISSION AND ORS

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WP/1203/2021HC BombayHCBM01017985202120 December 2021Author: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE AMIT BORKAR2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court disposed of the Writ Petition. The Court noted the CBDT's order dated September 28, 2021, which, in exercise of powers under Section 119(2)(b) of the Income-tax Act, 1961, authorized the admission of settlement applications filed after January 31, 2021, and before September 30, 2021, by specific authorities. The petitioner's application was filed on March 15, 2021, which falls within this extended period. The respondents confirmed that the petitioner's application would be considered subject to other conditions being fulfilled. The Court did not delve into the merits of the settlement application itself but acknowledged the applicability of the CBDT's order and the respondents' statement regarding consideration of the application. No specific issue was left undecided; the petition was disposed of based on the stated facts and the respondents' submission.

What were the facts?

The petitioner, Atharva Builders and Developers, filed a Settlement Application with the Income Tax Settlement Commission for Assessment Years 2014-15 to 2020-21 on March 15, 2021. This application was filed after the original deadline stipulated in Section 245C(5) of the Income-tax Act, 1961. The petitioner approached the Bombay High Court via a Writ Petition challenging the potential rejection of their application. The Central Board of Direct Taxes (CBDT) had issued an order dated September 28, 2021, authorizing Commissioners of Income-tax posted as Secretary to the Settlement Commission prior to February 1, 2021, to admit settlement applications filed after January 31, 2021, and before September 30, 2021, treating them as valid pending applications.

What were the issues?

1. Whether the Settlement Application filed by the petitioner, Atharva Builders and Developers, for Assessment Years 2014-15 to 2020-21 on March 15, 2021, is valid and should be processed as a pending application, considering the CBDT's order dated September 28, 2021, issued under Section 119(2)(b) of the Income-tax Act, 1961. Assessee's Contention: The petitioner argued that their application, filed on March 15, 2021, falls within the extended period of acceptance (before September 30, 2021) as per the CBDT's order, and therefore, it should be considered valid and processed. Revenue's Contention: The respondents (Income Tax Settlement Commission & Ors.) stated that the petitioner's application would be considered subject to fulfillment of other conditions in accordance with law, implying acceptance of the CBDT's order as applicable.

Which sections of the Income-tax Act were involved?

Section 119,Section 245C,Section 245A

AI-generated summary — verify with the full judgment below

1/2 911i.WP-1203-2021.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.1203 OF 2021 Atharva Builders and Developers ….Petitioner V/s. Income Tax Settlement Commission & Ors. ….Respondents ---- Mr. Ajay Singh a/w. Mr. Sameer G. Dalal for petitioner. Mr. Sham V. Walve a/w. Mr. Pritesh Chatterjee for respondents. ---- CORAM : K.R. SHRIRAM & AMIT B. BORKAR, JJ.

DATED : 20th DECEMBER 2021 P.C. : 1 Mr. Singh tenders a copy of order dated 28th September 2021 issued by CBDT bearing F. No.299/22/2021-Dir (Inv. III)/174 in which paragraph 3 reads as under :- “3. In view of the above, the Board in exercise of its power under clause (b) of sub-section (2) of section 119 of the Income-tax Act, 1961 (the Act), in order to avoid genuine hardship to assessees authorizes the Commissioner of Income-tax, posted as Secretary to the Settlement Commission prior to 01.02.2021, to admit an application for settlement on behalf of the Interim Board filed after 31.01.2021, which is the date mentioned in sub-section (5) of section 245C of the Act for filing such application, and before 30.09.2021 and treat such applications as valid and process them as “pending applications” as defined in clause (eb) of section 245A of the act.” 2 It is stated in the petition that petitioner has filed Settlement Application for A.Y. 2014-15 to A.Y. 2020-21 on 15th March 2021. Since that is before the extended date of 30th September 2021 as mentioned in the order, Mr. Walve states that petitioner’s application will also be considered subject to other conditions being fulfilled in accordance with law. Gauri Gaekwad GAURI AMIT GAEKWAD GAURI AMIT GAEKWAD Date: 2021.12.22 10:40:01 +0530

2/2 911i.WP-1203-2021.doc 3 Petition accordingly stands disposed. (AMIT B. BORKAR, J.) (K.R. SHRIRAM, J.) Gauri Gaekwad

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