Central Board of Direct Taxes Vs Anbuchezhian (Madras High Court)
Madras High Court upheld a Single Judge’s order deeming the respondent’s application to the Interim Board for Settlement valid under Clause [iv] of Explanation to Section 245A of the Income Tax Act, 1961. The application, related to assessment years 2014-15 to 2019-20, was initially deemed invalid by the Interim Board due to the non-filing of a return of income as of January 31, 2021. However, the Single Judge relied on Division Bench rulings, including Jain Metal Rolling Mills v. Union of India and Ashwini Fisheries Private Limited v. Principal Commissioner of Income Tax, which confirmed that applications submitted between February 1 and March 31, 2021, are deemed pending for settlement purposes.
The Division Bench’s stance was further affirmed by the Hon’ble Supreme Court on July 9, 2024, solidifying the deemed pendency principle. Acknowledging these precedents, the High Court dismissed the writ appeal filed by the Central Board of Direct Taxes (CBDT) against the Single Judge’s decision. The court concluded that the matter lacked merit, with the Single Judge’s decision already complied with by the appellant. This judgment emphasizes the binding nature of judicial precedents and reinforces the procedural rights of taxpayers under Section 245A.
