Income Tax Act, 1961 – ss.245, 245C(1), 245HA, 245D – Application u/s.245C(1) was filed by the appellants before the Settlement Commission – Order dtd. 31.03.2008 passed by the Settlement Commission – High Court while dismissing the writ petition, filed by the appellants challenging the show cause notice for re-assessment issued in terms of order dtd. 31.03.2008, observed that the said order was a nullity – Justification of – Held: Settlement Commission specifically observed in the order dtd. 31.03.2008 that it was not practicable to examine the records, investigate the case for proper settlement and give adequate opportunity to the applicant and the Department as laid down in s.245D(4) however, it passed the order to comply with the directions of the High Court to dispose of the application on or before 31.03.2008 – Thus, in view of the manner in which the Settlement Commission disposed of the application u/s.245, High Court was justified in observing that the order passed by the Settlement Commission was a nullity and cannot be said to be an order in the eye of law – Order dtd. 31.03.2008 set aside – Subsequent assessment/re-assessment order passed by the A.O also set aside – Matter remitted to the Settlement Commission/Interim Board for fresh decision following the due procedure u/s.245.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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