Re: Writ petition- Settlement Commission .

An assessee has filed a writ petition in the high court under Article 226/ 227 of the Constitution of India for quashing the order passed by the Settlement Commission. Pending the disposal of the writ, the assessee has filed a declaration u/s 4 of the scheme to settle the dispute that was being contested in the writ by accepting the order of the Settlement Commission on payment of disputed tax without interest . Please advise.

The case of the assessee apparently satisfies the requirements of he being an appellate whose has filed a writ  that is pending before the high court on a specified date and in respect of which the tax is determined to be payable under an order passed by the Settlement Commission which is an Income tax Authority within the meaning of the term u/s 119 of the Act. The assessee should not be denied the  relief in respect of the disputed interest and penalties in payment of the disputed tax under the scheme. It is important to note that the declaration being filed is for settlement of dispute arising out of the order of the Settlement Commission. And not of the original order passed by the AO. 

 

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