S. 245D : Settlement Commission-Settlement of cases-Procedure – Application-Single judge allowing writ petition filed by Commissioner of Wealth-tax and Commissioner of Income-tax against order under section 245D(4) passed by Settlement Commission No allegation that decision of Settlement Commission not in accordance with provisions of Act or based on bias, fraud and malice-Order of single judge in writ petition set aside-Blackstonian theory- Precedent Retrospective application of later judicial decision theory-Decision rendered later would have retrospective effect clarifying legal position which was earlier not correctly understood.[S. 245B(3), 245D(4) Art. 226]

S. 245D : Settlement Commission-Settlement of cases-Return of income-Delay in filing of return – waiver of interest-Delayed filing of return as of copies of documents seized by Department not supplied in time to assessee-Cause for delay accepted by Settlement Commission-Settlement Commission reducing interest to 50 per cent.-No reasons assigned for partial reduction of interest-Complete waiver warranted when circumstances beyond assessee’s control Income- Advance tax- Seizure of cash not related to payment of advance tax-Settlement Commission right in refusing to waive interest for default in payment of advance tax. [S.220(2), 234B, 234C, 245D(4), Art. 226]

S. 245D : Settlement Commission-Settlement of cases-Advance tax-Interest-Search and seizure-Seizure of cash not related to payment of advance tax High Court holding Settlement Commission right in refusing to waive interest for default in payment of advance tax – SLP of assesseee dismissed. [S. 234B. 234C, 245D(4), Art. 136]

S. 237 : Refunds-Dividend distribution tax – Income-tax Refund order Essential factors Order must reflect conclusive and final- Preliminary or prima facie opinion not sufficient. Communication not demonstrating full and final satisfaction regarding entitlement to No breach of article 265 of Constitution where refund not conclusively determined Refund cannot be granted based on such communication. Fresh adjudication ordered. [Art. 265]

S. 234A : Interest-Default in furnishing return of income-Waiver of interest- Return filed voluntarily after receipt of letter from Assessing Officer-Delay owing to old age of assessee and assessee being illiterate-Factors can be treated as unavoidable circumstances-Waiver must be granted-Notification dated 23-5-1966(1997) 235 ITR 101 ( St ) [S. 119(2), 139, 234B, 234C,Art. 226]

S. 151A: Face less assessment scheme-Notices issued and orders passed outside purview of Jurisdictional Assessing Officer in faceless mechanism and hence set aside-Revenue given liberty in accordance with new procedure on outcome of Supreme Court decision in pending special leave petition on similar issue.[147, 148, 148A(b),148A(d), 151A, Art. 226]

S. 151A: Face less assessment scheme-Notices issued by jurisdictional Assessing Officer quashed and set aside-In a taxing statute, one has to look at the text as it is. There is no equity in taxation law. There is no intendment and presumption as to tax-Nothing is to be read in and nothing is to be implied- Revenue granted liberty to issue fresh notices in compliance with Central Board of Direct Taxes circular read with section 151A of the Act – Interpretation of taxing statue-term “randomly”. [S. 147, 148, 148A(b) 148A(d), Art. 226, 265]

S. 151A: Face less assessment scheme-Notice under section 148 issued by jurisdictional Assessing Officer instead of Faceless Assessing Officer-Non-compliance with provisions of section 151A-Banking business-Capital or revenue Purchase of securities-Broken period interest-Allowable revenue expenditure-Audit objection-Notice invalid.[S. 147, 148, 148A(b), 148A(d), Art.226]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice-Information found recorded in coded electronic books of account of searched party – No scrutiny assessment – Reassessment notice is valid – Limitation-Quantum of escapement of income Limitation for assessment year 2017-2018 existing beyond 31-3-2021- Reassessment proceedings within prescribed time limit of six or ten years.[S. 147, 148, 148A(d), 153, Art. 226]

S. 148A: Reassessment-Conducting inquiry, providing opportunity before issue of notice – Diversion of loan- Proceedings continued under section 148A pursuant to direction of Supreme Court in UOI v. Ashish Agarwal( 2022) 444 ITR 1 (1) (SC) – Reassessment proceedings held to be valid. [S. 147, 148, 148A(b), 148A(d), Art. 226]