The Calcutta High Court dismissed an income tax appeal on the ground that the challenge of the final order passed by Settlement Commissioner was made after 9 years.
The appeal is directed against the order passed in WP 496 of 2014. By the impugned order, the Single Judge referred to a decision of a coordinate Bench of the Single Judge in another matter and dismissed the writ petition in view of the position of law laid down by the Single Judge in the other matter.
In the facts of the present case, a writ petition was filed at the behest of the department challenging the order of the Settlement Commission dated August 14, 2013. By the order, the Settlement Commission entertained a request for initiation of Settlement Commission for the assessment years 2011-12, 2012-13 and 2013-14.
The advocate who appeared for the appellant submitted that, the assessee did not file return for the assessment year 2012-13 and 2013-14. Therefore, the assessee does not come within the purview of Section 139(1) of the Income Tax Act, 1961. No notice under Section 142(1) was issued to the assessee for such assessment year. Therefore, there is no scope of assessment of the assessee for the two relevant assessment years as contemplated under Section 143.
During the pendency of the appeal, the Settlement Commission passed final order of settlement in respect of the two assessment years. The assessee accepted the final order passed by the Settlement Commission and paid tax in accordance therewith. The department did not assail the final order of settlement. The final order of settlement is dated December 19, 2014.
A Division Bench of Justice Debangsu Basak and Md Shabbar Rashidi observed that “A period of nine years elapsed since the final order was passed by the Settlement Commission without the same being assailed by the parties thereto. In such circumstances, we are not minded to interfere with the appeal. Points of law raised are kept open.”
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