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TMI Blog2023 (7) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... ions were not correct. In our view, the fact that Respondent No. 2 intimated to the Petitioner by his letter dated 18th December 2007 what, according to Respondent No. 2, was the correct tax and interest to be paid by the Petitioner under the provisions of Section 245D(2D is irrelevant. It is absurd to interpret the provisions of Section 245D(2D) as suggested by Respondents. How is one expected to know before 31st July 2007, the figure disclosed only in December 2007. Therefore, it says disclosed in the application. Thus the Order which holds that the proceedings arising out of the two Applications filed by the Petitioner had abated in accordance with provisions of Section 245HA(1)(ii) of the Act, is erroneous and contrary to the provisions of Section 245D (2D) of the Act. Petitioner had complied with the requirements of Section 245D(2D) of the Act, Respondent No. 1 ought to have allowed the Applications of the Petitioner to be further proceeded with and wrongly came to the conclusion that the same had abated in accordance with the provisions of Section 245HA(1)(ii) . - K.R. SHRIRAM FIRDOSH P. POONIWALLA, JJ. For the Petitioner : Mr. Ajay R. Singh with Mr. Aks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the receipt of the said Order and to furnish proof of such payments. 7. The Petitioner paid the tax as calculated by it on the total income as originally and additionally disclosed by it and informed Respondent No. 2 about the same by his letter dated 4th January, 2007. The Petitioner annexed to the said letter a Statement showing the tax liability on the additional income offered by the Petitioner in the Settlement Application for Assessment Years 2002-03 to 2004-05 and also challans demonstrating payment of the tax. 8. Further, the Petitioner also made an Application dated 22nd March 2007 to Respondent No. 1, under Section 245-C of the Act, in respect of Assessment Year 2005-06. The Petitioner disclosed an additional income of Rs. 34,19,586/- and tax payable thereon of Rs. 12,22,386/-. 9. By his letter dated 14th August 2007, the Petitioner once again informed Respondent No. 2 about the taxes paid by him on the additional income disclosed by him in the Application in respect of Assessment Years 2002-03, 2003-04 and 2004-05. 10. It is stated in the Petition that Respondent No. 1 fixed the hearing of Petitioner s Application for settlement on 11th December, 2007, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the additional income disclosed by the Petitioner. 13. However, Respondent No. 1, by its Order dated 11th January, 2008, held that the proceedings arising out of the two Applications of the Petitioner had abated in accordance with the provisions of Section 245HA (1)(ii) of the Act and directed that the Assessing Officer should now dispose of the cases in accordance with the provisions of sub-sections (2), (3) and (4) of Section 245HA of the Act. 14. The Petitioner filed the present Writ Petition on 25th March, 2008. By an order dated 27th March, 2008, this Court issued Rule and by way of interim relief directed that, during the pendency of the Petition, Respondent No. 1 shall not treat the Settlement Applications filed by the Petitioner as having abated. 15. In paragraph 20 and ground E of the Writ Petition, the Petitioner had challenged the validity of Section 245-D (2D) and Section 245HHA of the Act, even though no declaration has been sought in the Petition for declaring these provisions as being ultra vires the Constitution of India. However, Mr. Ajay Singh, appearing on behalf of the Petitioner, submitted that the said challenge was not being pressed by the Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Applications of the Petitioner could not be allowed to be further proceeded with under the provisions of Section 245D(2D) of the Act. Therefore, Respondent No. 1 had correctly held that the Applications had abated in accordance with the provisions of Section 245HA(1)(ii) of the Act. 20. The applicable provisions will be Section 245D(2D) of the Act. This is because an order under sub-section (1) of Section 245D had been passed on 30th November 2006 i.e. before the amendment by the Finance Act, 2007 that came into force with effect from 1st June 2007, admitting the application and allowing it to be proceeded with. Section 245D(2D) of the Act reads as under:- (2D) Where an application was made under subsection (1) of section 245C before the 1st day of June, 2007 and an order under the provisions of sub-section (1) of this section, as they stood immediately before their amendment by the Finance Act, 2007, allowing the application to have been proceeded with, has been passed before the 1st day of June 2007, but an order under the provisions of sub-section (4), as they stood immediately before their amendment by the Finance Act, 2007, was not passed before the 1st day of June, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Years 2002-2003 upto 2005-2006 before 31st July, 2007 as per his calculations. On or before 31st July, 2007, the Respondents did not give any intimation to the Petitioner that there was any short fall in the tax and interest paid by the Petitioner as per the income disclosed in his Applications. Much later, it was only by his letter dated 18th December, 2007 that Respondent No. 2 intimated to the Petitioner what, according to Respondent No. 2, was the correct tax and interest to be paid by the Petitioner under the provisions of Section 245D (2D) of the Act. Further, one day after the said intimation, Respondent No. 1 held a hearing on 19th December, 2007 and by its Order dated 11th January, 2008 came to the conclusion that the proceedings arising out of the two Applications filed by the Petitioner had abated in accordance with the provisions of Section 245HA(1)(ii) of the Act. 23. In our view, the Petitioner had complied with the provisions of Section 245D(2D) of the Act by paying the additional tax and interest on the income disclosed by him in his Applications before 31st July, 2007 as per his calculations, as required by Section 245D(2D) of the Act, and that is what was r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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