S. 245A Income Tax Act
The Kerala Excessive Court docket has allowed the settlement software beneath Part 245A of the Revenue Tax Act filed past cutoff date, whereas citing Supreme Court docket’s COVID limitation order.
Justices A.Okay. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court docket in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and acknowledged that the assessee had filed the appliance for settlement on 17.03.2022, which is effectively throughout the time granted by the Supreme Court docket paying attention to the Covid pandemic scenario.
The assessee could be permitted to pursue his software that was filed earlier than the Interim Board for Settlement on 17.03.2022, added the bench.
It is the case of the assessee/appellant that though they’d acquired the notices beneath Part 153A between 31.03.2021 and 30.09.2021, the appliance for settlement beneath Part 245A of the Revenue Tax Act could possibly be most well-liked by them solely on 17.03.2022.
The assessee submitted that though the functions for settlement had been prepared earlier than 30.09.2021, they had been granted permission to take copies of seized supplies and digital gadgets solely on 04.10.2021 and it is just thereafter that they might file the appliance charges to assist the settlement functions that had been filed.
As far because the assessee is anxious, the notices beneath Part 153A had all been acquired earlier than the closing date on 30.09.2021 and the one objection that was raised towards the assessee in sustaining the appliance for settlement earlier than the Interim Board for Settlement was that the appliance was truly filed solely on 17.03.2022, famous the bench.
The bench discovered that whereas contemplating the limitation interval specified beneath the provisions of Chapter XIX of the Revenue Tax Act coping with settlement circumstances, the orders handed by the Supreme Court docket in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation], clearly states, that “in circumstances the place the limitation would have expired in the course of the interval between 15.03.2020 and 28.02.2022, then however the precise steadiness interval of limitation remaining, and all individuals shall have a limitation interval of 90 days from 01.03.2024. Within the occasion the precise steadiness interval of limitation remaining, with impact from 01.03.2022 is larger than 90 days, that longer interval shall apply.”
The bench after making use of the above Supreme Court docket judgment noticed that inasmuch as the assessee had filed the appliance for settlement on 17.03.2022, which is effectively throughout the time granted by the Supreme Court docket paying attention to the Covid pandemic scenario, the assessee could be permitted to pursue his software that was filed earlier than the Interim Board for Settlement on 17.03.2022.
In view of the above, the bench allowed the enchantment filed by the assessee.
Case Title: Mr. Thomas Joseph v. Union of India
Case Quantity: WA NO. 430 OF 2025
Counsel for Appellant/ Assessee: Aditya Unnikrishnan
