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TMI Blog2024 (12) TMI 1352X X X X Extracts X X X X X X X X Extracts X X X X ..... ng application in Section 245C (5) as 31.03.2021 and consequently the last date mentioned in paragraph 4(i) of the circular should be read as 31.03.2021. In the case on hand the petitioners applied before the Settlement Commission on 17.03.2021 i.e., prior to the date when the assent of the Hon'ble President of India has been received. The decision in the case of Jain Metal (supra) shall squarely apply to the case on hand. Thus the learned Single Judge as well as the order impugned in the writ petition passed by the Income Tax Settlement Commission are set aside and quashed. The application of the petitioner filed before the Income Tax Settlement Commission stands restored to the file of the Settlement Commission. The Interim Board is directed to consider the said application in accordance with the scheme that may be framed by the Central Government as in respect of the cases which arose prior to 31.01.2021 and to decide the same in accordance with law and on merits. - HON BLE JUSTICE HARISH TANDON AND HON BLE JUSTICE HIRANMAY BHATTACHARYYA For the Appellants : Mr. J.P. Khaitan, Sr. Adv. Mr. Saumya Kejriwal Ms. Ananya Rath Mr. Debarghya Banerjee Mr. Navin Mittal advocates. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , within the power conferred upon it and the same is not discriminatory. 5. Prior to the Finance Act, 2021, the eligible assessees were entitled to approach the Income Tax Settlement Commission (for short Settlement Commission ) at any stage of a case relating to them. The Settlement Commission was abolished by the Finance Act, 2021 which was notified on 01.04.2021 and an Interim Board was constituted to deal with the pending applications. Proviso to section 245B was inserted which states that the Settlement Commission shall cease to operate on or after 01.02.2021. Section 245C (1) was inserted by the Finance Act, 2021 which states that no application shall be made under that Section on or after 01.02.2021. The Finance Act was made retrospective in operation with effect from 01.02.2021. A circular was issued on 28.09.2021 extending the time limit for filing applications before the Interim Board upto 30.09.2021. Para 4 of the said circular provided that the said relaxation shall be available to the application filed by the assessees who were eligible to file application for settlement on 31.01.2021 for the assessment years for which the application is sought to be filed and where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us - 35. The impugned circular is issued in the exercise of power under section 119 (2) of the Act. The offending clause 4 (i) is extracted supra in paragraph No. 6 above. On a consideration of the decisions relied on by both sides and submissions made, to answer the question in the present context of the case, it is clear that a circular issued by the respondents under section 119 of the Act : (i) would be binding on the Departmental authorities; (ii) it is issued to ensure uniform and proper administration and the application of the Income-tax Act ; (iii) it cannot add any new condition or anything contrary to the statute; (iv) but, in order to mitigate the rigour of the provisions for the benefit of the assesses in certain specified circumstances, it can even travel beyond so as to grant administrative relief to the taxpayer, but, it shall not impose any new burden on him. 36. In that conspectus, with the Finance Act, 2021, in the background as such, it can be seen that by virtue of the proviso to section 245B, the Income-tax Settlement Commission is made inoperative with effect from February 1, 2021. Similarly, section 245C (5) also plays an embargo that no application shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Hon'ble Division Bench by observing that it is just necessary to read down the last date mentioned for filing application in Section 245C (5) as 31.03.2021 and consequently the last date mentioned in paragraph 4(i) of the circular should be read as 31.03.2021. 11. In view of the findings rendered in respect of question nos. I and II formulated by the Hon'ble Division Bench of the Madras High Court, it was held that all applications in respect of the petitioners even in respect of the cases arising between 01.02.2021 to 31.03.2021 shall be deemed as pending applications for the purpose of consideration by the Interim Board and wherever they are rejected on the ground that they did not have a case pending as on 31.01.2021, such orders shall stand set aside and the applications shall be deemed to be pending applications for the consideration by the Interim Board if otherwise in order and eligible and shall be dealt with in accordance with law on merits as per the scheme that may be framed by the Central Government as in respect of the other cases which arose prior to 31.01.2021. The Conclusions were summarised in Paragraph 42 of the said reports which is extracted here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ospective legislation cannot affect the vested rights. When the Department has extended the last date from 1st February 2021 to 30th September 2021, it can only extend the deadline but cannot introduce a new concept of eligibility as on 1st February 2021 which is not there in the Act itself. Though the CBDT relaxed the rigours of the provisions of the Act for the benefit of assessees, it is not open to the CBDT to put in new rigours or impediments to the rights of an assessee in a Press Release or a notification which is contrary to the provisions of the Act. Though the legislature has the power to make laws with retrospective effect, that power cannot be used to deprive a person of an accrued right vested in him under a statute or under the Constitution. Sub-section (5) of Section 245C of the Act, even though inserted with retrospective effect from 1st February 2021, can be given effect to only after the date when the assent of the Hon'ble President of India was received to promulgate the Finance Act, 2021. Subsection (5) of Section 245C of the Act provides that no application shall be made under this section on and after 1st February 2021. Petitioner had already made the appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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