The assessee filed a settlement application on 19.03.2021 after proceedings under section 148 of the Income-tax Act, 1961 were initiated. The Interim Board of Settlement rejected the application for certain assessment years, holding it non-maintainable on the ground that no proceedings were pending as on 31.01.2021, a condition of eligibility stipulated in a CBDT Order. The High Court, following its earlier decision in Sar Senapati Santaji Ghorpade Sugar Factory Ltd v. ACIT [2024] 161 taxmann.com 166 (Bom.)(HC), held that this condition was invalid and bad in law. Accordingly, the Court quashed the order of the Interim Board and directed it to adjudicate the assessee’s application on its merits. Notification No. 91 of 2021, CBDT Notification dated 21 September, 2021. (AY 2015-16, 2016-17, 2017-18, 2020-21)
Swadik Trade (P) Ltd v. CBDT [2024] 165 taxmann.com 847 (Bom.)(HC)
S. 245C : Settlement Commission-Settlement of cases-Conditions-Maintainability-Condition in CBDT order requiring eligibility to file application as on 31.01.2021 held invalid-Application filed after said date but before cut-off date is maintainable even if no proceeding was pending on 31.01.2021-Interim Board for Settlement could not have rejected assessee’s application and, thus, impugned order passed by it was to be set aside. [S. 119,133A, 148, 245D, Art. 226]
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