G-NET TOURISM PRIVATE LIMITED AND OTHERS vs. UNION OF INDIA AND ORS.

WPA/10203/2021HC CalcuttaWBCHCA018343202116 September 2021Bench: HON'BLE JUSTICE MD. NIZAMUDDIN2 pages

AI SummaryRemanded

What did the High Court hold?

The Tribunal held that the Assessing Officer is restrained from proceeding with the assessment of assessment years 2013-14 to 2020-21 until the disposal of the settlement application pending before the Settlement Commission. The reasoning was that if the Assessing Officer were to proceed and pass an order before the Settlement Commission's decision, the petitioners' settlement application would become infructuous. The Tribunal disposed of the writ petition by issuing this direction. No issue was expressly left undecided.

What were the facts?

The petitioners, G-Net Tourism Pvt. Ltd. & Ors., filed a writ petition challenging the Income Tax Officer's ability to proceed with assessments for assessment years 2013-14 to 2020-21 while their application for settlement was pending before the Income Tax Settlement Commission. The writ petition was initially filed when the Settlement Commission had ceased to operate due to the Finance Act, 2021. However, a subsequent press release dated September 7, 2021, indicated that the Settlement Commission had been re-empowered to handle pending applications. The petitioners argued that any assessment order passed by the Assessing Officer before the Settlement Commission's decision would render their settlement application infructuous.

What were the issues?

1. Whether the Assessing Officer can proceed with the assessment of assessment years 2013-14 to 2020-21 during the pendency of the petitioners' settlement application before the Income Tax Settlement Commission? (Question of law and fact, concerning the procedural implications of a pending settlement application). Assessee's Contention: The Assessing Officer cannot proceed with the assessments for the years under settlement, as it would make the settlement application infructuous. The petitioners relied on the principle that a settlement application, once admitted, should ideally lead to a resolution without parallel assessment proceedings. Revenue's Contention: The judgment records no specific contention from the respondents (Union of India & Ors.) regarding this issue.

AI-generated summary — verify with the full judgment below

S/L 3 16.09.2021 Court. No. 2 cm WPA 10203 of 2021 With CAN 1 of 2021 G-Net Tourism Pvt. Ltd. & Ors. Vs. Union of India & Ors. (Through Video Conference) Mr. Surajit Nath Mitra Mr. Sourojit Das Gupta, Ms. Sanchari Chakroborty, Mr. Soumik Chakraborty ……For the petitioners Mr. S.Roychoudhury Mr. Soumen Bhattacharjee …. For the respondents. A very limited issue involves in this writ petition according to me as appears after considering the submission of the parties that whether during the pendency of the application of the petitioners for settlement before the Income Tax Settlement Commission, relating to assessment year 2013-14 to 2020-21 can the Assessing Officer proceed with the assessment of same assessment years ? This writ petition was filed at the time when by the Finance Act, 2021, the Settlement Commission was ceased to operate but now in view of the notification of the CBTD as appears from Press release dated 7th September, 2021 placed by the learned advocate appearing for the respondents Income Tax authorities, it appears that

2 the Settlement Commission has again been empowered to deal with the pending settlement application before them. Petitioners’ contention that the Assessing Officer concerned cannot proceed with those assessment years which are the subject-matter of settlement before the Settlement Commission is correct because if the Assessing Officer proceeds with the same assessment years and passes order before any order of the Settlement Commission, the application of the petitioners’ for settlement will become infructuous. Considering the submission of the parties, this writ petition is disposed of by restraining the Assessing Officer/respondent concerned from proceeding with the relevant assessment years 2013-14 to 2020-21 till the disposal of the settlement application pending before the learned Settlement Commission. This writ petition being WPA 10203 of 2021 along with CAN No. 1 of 2021 is disposed of accordingly. (Md. Nizamuddin, J.)

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