TG HC: I-T Settlement Commission to Accept Application U/S 245(C)

Telangana High court has urged that the income tax settlement commission allow the application of settlement beneath section 245 (C) in the Income-tax act.

In the writ appeal, the order has been passed via Green city Duke’s estates where it directs that during the section carried in the income tax act. The income tax settlement commission has stopped taking the applications.

This comes beyond the Finance Bill 2021 where it urges that the income tax settlement commission will stop treating on or post 1/02/2021. Moreover, it has urged to change section 245C of the act so as to give that no application will be developed beneath this section on or post 1/02/2021. According to the bill the changes will take effect from 1/02/2021.

“…just because the bill is introduced that will not have enforceability of law unless it is passed by the Parliament and notification issued to that effect,” the counsel for Green city Dukes Estates directed.

The respondents to the writ appeal consist of the dept of revenue, ministry of finance assistant commissioner of income tax central wing Hyderabad and income tax settlement Commission (ITSC), Chennai court.

“In the present case nothing has happened and the statute remains on the statute book. The third respondent (ITSC) is obligated to receive the application as long as the statute is valid and subsisting,” said the High court. The case is recorded for hearing on 12 April.

Issue Solution Department

In the budget of the central 2021-22, it urges the issue resolution committee to lower down the prosecution and provide the momentum to the issue resolution for the small assessee. As per the recommended discontinuing ITSC.

“However, the pending cases shall be decided by an Interim Board if opted by the applicant,” Several tax experts have boosted the same problem. The income tax bar association Calcutta provides a representation to the FM Nirmala Sitaraman held that restricting the ITSC will form in the spurt of law and late revenue collection.

“As far as direct tax These types of taxes are directly imposed and paid to the government of India. Example of Direct Tax is Income Tax, TDS, Securities Transaction Tax, Fringe Benefit Tax, etc is concerned, any amendment is made effective from the passing of the Finance Act or from a particular date usually from the beginning of a financial year,” commented in the representation adding the taxpayers searched on or prior 31/03/2021 must be permitted to furnish the settlement petitions in the stipulated duration.

The prolongation can be done for furnishing the fresh cases of the settlement prior to the ITSC as it will exist on 31/01/2021 might also get prolonged up until the date on which the Finance act 2021 will be furnished.

“The intent and rationale behind this unprecedented move remain unsupported, since no such object and/or reasons behind the introduction to Clauses 54 to 65 to the Finance Bill, 2021 stand provided,” stated by SK Tulsyan, President, ITBA Calcutta.