The Tax Publishers2020 TaxPub(DT) 0360 (Mad-HC) : (2020) 274 TAXMAN 0437

CONSTITUTION OF INDIA, 1950

Article 226

Settlement Commission was seized of the applications for rectification of mistake that petitions were premature and these applications should be decided by Settlement Commission, therefore, Settlement Commission was directed to take steps to liquidate the fixed deposits which were also seized and to appropriate amount towards the balance of admitted tax liability and interest of the petitioners and file a report before Settlement Commission, thereafter Settlement Commission shall dispose of the applications filed for rectification of mistake by petitioners.

Writ petition - Settlement Commission - Rectification of mistake - Adjustment of seized amount towards tax and interest payable by petitioner for block period and remaining amount towards the tax/interest payable

A search was conducted in premises of petitioners and unaccounted cash and fixed deposits were found. Petitioners who were members of the same family opted to settle their income tax dispute before Settlement Commission for the period covering the block assessment and assessment year 1999-2000. Applications to settle the dispute under section 245D(1) were admitted and allowed to be proceeded. Petitioners pleaded for payment of the admitted tax liability in two installments which was also granted by Settlement Commission and under these circumstances, a plea was made to adjust the seized cash and bank balance towards 1st installment. Settlement Commission directed AO to verify the position and adjust the seized amount towards tax and interest payable by assessee for block period and remaining amount towards the tax/interest payable. In case any demand is found payable by petitioners after adjustment of the seized amount, the same should be paid within 35 days of receipt of the order. Held: Since Settlement Commission was seized of the applications for rectification of mistake that petitions were premature. These applications should be decided by Settlement Commission. Settlement Commission was directed to take steps to liquidate the fixed deposits which were also seized and to appropriate amount towards the balance of admitted tax liability and interest of the petitioners and file a report before Settlement Commission within a period of 4 weeks. Settlement Commission shall thereafter dispose of the applications filed for rectification of mistake by petitioners. Liberty was given to petitioners to make appropriate submissions before Settlement Commission and in case there is any excess amounts after such adjustment, the same may be directed to be refunded to petitioners and vice versa.

REFERRED :

FAVOUR : Directions issued

A.Y. :



IN THE MADRAS HIGH COURT

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