2014 (10) TMI 914 - HC - Income Tax

Grant extension of time - Held that - We have heard counsel for the parties and in view of the limited nature of the prayer, dispose of the writ petition by directing the Board, to decide the petitioner s application, dated 7.6.2014, forwarded on 10.6.2014, within three months of receipt of a certified copy of this order. This order shall not be construed to be an expression of opinion on the rights and obligations of the parties.

Summary

Issues:
1. Extension of time to utilize funds received from the sale of land.
2. Direction to the Central Board of Direct Taxes to decide on the application for extension within a fixed period.
3. Clarification on not stalling assessment proceedings.

Extension of time to utilize funds:
The petitioner sought a writ mandamus directing the respondents to grant an extension of time to utilize funds received from the sale of land. The petitioner had applied to the Central Board of Direct Taxes for this extension. The counsel for the petitioner requested a fixed period for the Board to decide on the application. The respondent's counsel did not object to the prayer, provided that the petitioner would not hinder any assessment or inquiry proceedings by the tax department. The court disposed of the writ petition by directing the Board to decide on the petitioner's application within three months of receiving a certified copy of the order. The court clarified that this decision did not express any opinion on the rights and obligations of the parties involved.

Direction to Central Board of Direct Taxes:
The main issue revolved around the direction sought by the petitioner for the Central Board of Direct Taxes to decide on the extension of time application within a specific timeframe. The court, after hearing both parties, directed the Board to decide on the petitioner's application, which was dated 7.6.2014 and forwarded on 10.6.2014, within three months of receiving a certified copy of the court's order. This direction was given without expressing any opinion on the rights and obligations of the parties.

Clarification on not stalling assessment proceedings:
The respondent's counsel raised a concern that the petitioner should not stall any assessment or inquiry proceedings by the tax department while seeking the extension of time to utilize the funds. The court took note of this concern and included a clarification in the judgment that the order to decide on the application within three months should not be interpreted as a hindrance to any ongoing or future assessment proceedings. This clarification aimed to ensure that the petitioner's request for an extension did not interfere with the tax department's processes.