2021 (4) TMI 1220 - HC - Income Tax

Promulgation of the Ordinance titled The Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 - members whose tenures subsisted up until that date, have had their tenures brought to an end - Members entitled to claim compensation not exceeding three months pay and allowances for the premature termination of their respective tenures - HELD THAT - Insofar as this Court is concerned, for the moment, we cannot issue any directions with regard to the pending cases, filed before the Authority for Advance Rulings in short the AAR . Having said so, we tried to impress upon Mr. Venkataraman that if some interim arrangement could be made, till the Board for Advance Ruling is constituted, then, perhaps, some pending cases could be disposed of, as has been done in the case of the Income Tax Settlement Commission. Mr. Venkataraman will revert on this aspect of the matter. As prayed, another four weeks are granted to the respondents to file their counter-affidavits in the captioned matters. Rejoinders, thereto, if any, will be filed before the next date of hearing. List for directions on 24.05.2021.

Summary

Issues involved:
1. Impact of The Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 on the tenure of tribunal members.
2. Entitlement of compensation for premature termination of tenure.
3. Inability to issue directions regarding pending cases before the Authority for Advance Rulings (AAR) due to the Ordinance.
4. Possibility of interim arrangements for pending cases until the constitution of the Board for Advance Ruling.
5. Extension of time for filing counter-affidavits by respondents.

Analysis:
1. The judgment addresses the impact of The Tribunals Reforms (Rationalisation and Conditions of Service) Ordinance, 2021 on the tenure of tribunal members. The Ordinance, promulgated on 04.04.2021, resulted in the premature termination of the tenures of members whose terms subsisted until that date. The petitioner highlights that these members are entitled to claim compensation not exceeding three months' pay and allowances for the premature termination of their tenures.

2. Due to the Ordinance's implications, the Court acknowledges its inability to issue directions regarding pending cases filed before the Authority for Advance Rulings (AAR). However, the Court suggests the possibility of making interim arrangements until the constitution of the Board for Advance Ruling to dispose of some pending cases, similar to the approach taken with the Income Tax Settlement Commission. The Court requests the Additional Solicitor General to consider this proposal and revert on the matter.

3. In consideration of the circumstances, the Court grants an extension of four weeks to the respondents to file their counter-affidavits in the cases. Any rejoinders to these counter-affidavits must be filed before the next date of hearing. The case is listed for further directions on 24.05.2021. Additionally, the Court instructs the counsel for both parties to submit written submissions not exceeding five pages each, at least three days before the next hearing date to facilitate the proceedings effectively.