Income Tax Settlement Application Rejection Doesn’t Block Merit-Based Assessment Challenge: SC

Advertisement PCIT- 1 Vs M. D. Industries Pvt Ltd. (Supreme Court of India) The Supreme Court considered a dispute concerning the effect of a pending settlement application under the Income Tax Act, 1961, and whether the assessee’s appellate rights were affected by such proceedings. It was noted that the application before the Settlement Commission had not yet been decided and that an order under Section 245D(4) remained to be passed. The Court clarified that Section 245HA applies only when a settlement application is rejected without providing terms of settlement, in which case appellate...