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TMI Blog2024 (2) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... he consent of learned advocates appearing for the respective parties, the matter is taken up for final hearing. 5. By this petition under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for the following reliefs: "(a) Quash the order passed by the Respondent No. 1 dated 27.12.2023 at Annexure A and Direct the Respondent No. 1 to pass a fresh order u/s. 245D(4) in the case of the petitioner on merits and in accordance with law. (aa) quash and set aside the assessment orders passed by the Respondent No. 3 on 27.07.2021 for the Assessment years 2013-14 to Assessment Years 2018-19 at Annexure CA1, CA2, CA3, CA4, CA5, CA6 and CA7. (b) Pending the admission, hearing and final disposal of this petition, stay implementation and operation of the impugned order dated 27.12.2023 at Annexure A." 6. Brief facts of the case are as under: 6.1 The applicant is engaged in the business of share trading activities through stock exchange and outside stock exchange, facilitation of dematerialization of shares held physically, advisory/consultancy services, other ancillary activities connected to shares/stock market/money leading against security obtained. The petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereafter, on 01.11.2021, the Central Government made E-Settlement Scheme 2021 to operationalize the functioning of the respondent No. 1 -Interim Board. 6.11 The Interim Board provided to the petitioner copy of report under Rule 9 of the Income-Tax Settlement Commission (Procedure) Rules, 1997(for short 'the Rules') vide email dated 28.09.2022 and sought for the reply. The respondent No. 1 time and again conducted the faceless hearing of the settlement application of the petitioner and passed an order dated 27.12.2023 considering the applications of the petitioner as 'non-est' and not maintainable on the ground that the assessment orders have not been quashed or set aside by the competent authority. Hence, the petitioner approached this Court by way of present petition seeking aforesaid reliefs. 7. Learned Senior Advocate Mr. S.N. Soparkar submitted that as per the provision of section 245F(i) the Act, the "Interim Board" is defined under section 245A(da) of the Act w.e.f. 01.02.2021 and respondent No. 1 -Interim Board is vested with all powers of the settlement board to adjudicate pending applications after 01.02.2021. 7.1 Learned Senior Advocate Mr. S. N. Soparkar submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the assessment order, the Interim Board has rightly not entertained the settlement application filed by the petitioner as the Interim Board has no power to quash and set aside the assessment orders which are already passed when the application was taken up for hearing. 9. Having heard learned advocates for the respective parties and having considered the facts and the impugned order passed by the Interim Board, it would be germane to refer to the relevant provisions of the Act which have been substantially amended by the Finance Act, 2021 w.e.f. 01.02.2021: "245A(da):- "Interim Board" means the Interim Board for Settlement constituted under section 245AA. 245C:- Application for settlement of cases (1) An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his income which has not been disclosed before the Assessing Officer, the manner in which such income has been derived, the additional amount of income-tax payable on such income and such other particulars as may be prescribed, to the Settlement Commission to have the case settled and any such appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the order of settlement passed under sub section (4) of section 245D within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted. (2) An immunity granted to a person under sub-section (1) may, at any time, be withdrawn by the Settlement Commission, if it is satisfied that such person had, in the course of the settlement proceedings, concealed any particulars material to the settlement or had given false evidence, and thereupon such person may be tried for the offence with respect to which the immunity was granted or for any other offence of which he appears to have been guilty in connection with the settlement and shall also become liable to the imposition of any penalty under this Act to which such person would have been liable, had not such immunity been granted." 10. The circular dated 28.09.2021 issued by the CBDT reads as under: "ORDER F. NO. 299/22/2021- IR(INV.III)/174, DATED 28.09.2001 The Finance Act, 2021 has amended the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 245C of the Act would be an eligible application though filed after 31.01.2021 and the same is required to be considered as pending application for adjudication on merits. 12. The assessment order passed by the respondent No. 3 on 27.07.2021 for A.Ys. 2013-14 to 2019-20 could not have been passed as the application filed by the petitioner for settlement is considered to be pending and the Interim Board is required to exercise all the powers of the Settlement Commission with regard to pending application and accordingly, as per provision of section 245F(2) of the Act, the Interim Board is vested with the powers of the Settlement Commission and jurisdiction and Income Tax authority could not have proceeded further with the assessment proceedings in view of the pendency of the settlement application before the Interim Board. The Interim board therefore would have exclusive jurisdiction over the case and the respondent No. 3 had no jurisdiction to pass any assessment order during the pendency of the application before the Settlement Commission/Interim Board. It appears that the respondent No. 3 has passed assessment orders in July 2021 when there was no clarity with regard to set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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