CIT (Central) Vs RNS Infrastructure Limited (Karnataka High Court)
The Karnataka High Court dismissed the Revenue’s intra-Court appeal under Section 4 of the Karnataka High Court Act, 1961, and upheld the Single Judge’s order allowing the writ petitions filed by RNS Infrastructure Limited, thereby quashing the Settlement Commission’s order dated 27.05.2016, the rectification rejection dated 11.08.2016 and consequential orders and demand notices.
Read SC Judgment in this case: SC Dismisses SLP Against Karnataka HC Judgment on Settlement Commission Time Limit
RNS Infrastructure Limited, engaged in infrastructure development and construction activities, had filed returns for assessment years 2006-07 to 2012-13, with assessments completed under Section 143(3) of the Income Tax Act, 1961. Following a search under Section 132, proceedings under Section 153A were initiated. During the assessment proceedings, the assessee approached the Income Tax Settlement Commission under Section 245C, offering additional income of Rs.16,80,07,102/- for assessment years 2008-09 to 2012-13.
The Settlement Commission declared the application valid under Section 245D(2)(c) on 03.04.2014. Revenue challenged that order, but the writ petitions were dismissed on 18.01.2016, while the subsequent writ appeals were withdrawn on 28.09.2016.
The Settlement Commission subsequently passed its final order under Section 245D(4) on 27.05.2016. The assessee’s rectification application was rejected on 11.08.2016, prompting the assessee to approach the High Court.
