INCOME TAX ACT, 1961

Section 245D(4)

Settlement Commission - Period of limitation for rectification of mistake apparent from record in order passed by Settlement Commission - -

Assessee filed an application under Section 245D(4) before the Settlement Commission for settlement disclosing additional income as prescribed under Section 245C for the period 2007-08 to 2013-14. The said application was decided by the Settlement Commission. Noticing certain errors in order, assessee preferred an application under Section 245D(6B) for rectification of mistakes on 30-6-2017. Assessee asserted that the order was served upon him in the month of December, 2016 and this averment was specifically made in the application so as to say that the application was within the period of limitation. However, Settlement Commission order had dismissed the application for rectification on the ground that the same was barred by limitation. Held: A perusal of sub-section (6B) of Section 245D makes it amply clear that any mistake apparent from the record in the order passed by the Settlement Commission under sub-section (4) of section 245D may be rectified at any time within a period of six months from the end of the month in which order was passed. Six months from the end of the month in which order was passed, expired on 31-5-2017. Admittedly, the application under section 245D(6B) was filed by assessee on 30.06.2017 which was barred by limitation as provided under sub-section (6B) thereof. Therefore, there was no error in the findings recorded by Settlement Commission warranting interference in exercise of power of judicial review.

Relied:D. Saibaba v. Bar Council of India & Anr. (2003) 6 SCC 186, Raja Harish Chandra Raj Singh v. Deputy Land Acquisition Officer & Another AIR 1961 SC 1500 and Petlad Bulakhidas Mills Co. Ltd. v. Raj Singh (1959) 37 ITR 264 (Bom) : 1959 TaxPub(DT) 33 (Bom-HC).

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2007-08 to 2013-14

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