Union of India Vs Aayana Charitable Trust (Kerala High Court)
Kerala High Court held that section 245C doesn’t prescribed any prior cut-off date for filing settlement application. Unadjudicated notice u/s. 153A/ 153C as on the date of application is the only requirement.
Facts- The writ petitions in question were filed by assessees under the Income Tax Act, 1961, aggrieved by the order of the Interim Board for Settlement that rejected the applications preferred by them for settlement of their cases in accordance with the provisions of Chapter XIX-A of the I.T. Act. The reason cited by the Interim Board for Settlement for rejecting the applications was that, although the applications for settlement had been filed on or before 30.09.2021, which was the last date for receipt of valid applications for settlement, there was no case pending in relation to the assessee as on 31.01.2021, within the meaning of the provisions of Section 245C(1), Section 245A of the I.T. Act read with the Central Board of Direct Taxes [CBDT] Instructions F.No.299/22/2021-Dir (Inv–III)/174 dated 28.09.2021, and hence the applications in question were not maintainable before the Board. It is the legality of the said stand taken by the Interim Board that was called in question in the writ petitions.
