Writ petition has been filed against the order of the Settlement Commission rejecting an application for settlement filed by the petitioner primarily on the ground that no proceedings were pending on the day. Allowing the petition the Court held that , for purposes of making an application for settlement, a case i.e. an assessment would be pending till such time as the assessment order is served upon the assessee. The assessee is entitled to proceed on the basis that till the service of the assessment order, the case continues to be pending with the AO. Therefore, it was open to him to invoke the provisions of Chapter XIXA of the Act (CIT v. ITSC (2015) 375 ITR 483 /58 taxmann.com 264 (Bom) (HC)& Yashovardhan Birla v . Dy .CIT ( 2016) 73 Taxmann.com 5 / 289 CTR 482 (Bom) (HC) followed, V.R.A. Cotton Mills (P) Ltd v.UOI ( 2013) 359 ITR 495/33 taxmann .com 675 ( P&H) (HC) & Shlibhadra Developers v. Secretary 2016 10 TMI 778 (Guj) (HC) distinguished).The application for settlement is restored to the file of the Commission at the stage of S. 245D(1) of the Act. The period of 14 days as provided in S. 245D(1) of the Act, will run from the date this order is first communicated by either of the parties to the Commission.” . Consequently, order dated 14.02.2019 is set aside. Petition stands disposed of. ( CWP No.5307 of 2019 (O&M), dt. 22.10.2019)
M3M India Holding Pvt. Ltd. v. ITSC ( 2019) 419 ITR 1/311 CTR 941 / 184 DTR 93/ (2020) 269 Taxman 425 (P &H) (HC), www.itatonline.org.Editorial: SLP dismissed on ground of delay of 137 days was not explained in preferring petition, PCIT (Cent.) v. M3M India Holdings (P) Ltd. (2022) 287 Taxman 90/ 114 CCH 37 (SC)
S. 245C : Settlement Commission – Settlement of cases – Conditions – Pendency of the assessment – An assessment would be pending till such time as the assessment order is served upon the assessee-Rejection of petition is held to be not valid . [ S. 245A (b) , 245(C) (1) , 245D(1) ]