The application was rejected for short payment of admitted tax. On writ the Court held that shortfall in the remittance of the admitted tax came to the assessee’s knowledge from the report under section 245D(2B) and the assessee had immediately remitted which constituted substantial and adequate compliance with the statutory condition under section 245C of the remittance of the entire admitted tax at the time of filing the application. The settlement application was restored to the Settlement Commission (Interim Board). (AY. 2011-12 to 2017-18)
Sri Lakshmi Ammal Educational Trust v. ITSC(2023)454 ITR 804 (Mad)(HC)
S. 245D : Settlement Commission-Settlement of cases-Entire tax on admitted additional income was paid-Short fall of tax was brought to Knowledge through report-Deposited the amount immediately-Sufficient Compliance-Application restored to Settlement Commission. [S. 132, 245C, 245D(2B), Art. 226]