Case Law Details
PCIT Vs Union of India (Patna High Court)
Introduction: The case of PCIT Central Patna through Mr Subrato Goswami vs Union of India through its Secretary Income Tax Settlement Commission before the Patna High Court centered on the challenge against the Settlement Commission’s order. The Income Tax Department contested the Commission’s decision, particularly regarding the Rule 9 report and procedural aspects under the Income Tax Act.
Detailed Analysis: The writ petition filed by the Principal Commissioner of Income Tax contested the Settlement Commission’s order dated 20.03.2019, primarily on grounds of non-consideration of the Rule 9 report and lack of opportunity for further enquiry before passing the final order under Section 245D(4) of the Income Tax Act. The Department also alleged insufficient opportunity for a fair hearing.
The Patna High Court reviewed the case meticulously. It examined the procedural requirements outlined in Section 245D of the Income Tax Act, emphasizing the Commission’s obligations regarding the application process and report submissions from the Commissioner.
The Court noted the submission of a supplementary affidavit confirming the receipt of a report under Section 245D(2B) of the Act, albeit after the stipulated 30-day period. Despite this delay, the Court observed that Section 245D(2C) mandates the Commission to proceed with the application if no report is received within the specified period.
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