Ashish Kumar Ahuja vs Union of India and Others

By the Court

By way of this petition, the petitioner is seeking relief to direct the Settlement Commission to proceed expeditiously with the application submitted by him, u/s 245C of the Income Tax Act, 1961 (hereinafter referred to as the Act).

On behalf of the respondent learned counsel submitted that in view of the decision in case of Deen Dayal Didwania Vs. Union of India and others, , this court need not interfere in matter like this. The Division Bench expressed an opinion, that:--

"Furthermore, the Act does not contemplate a stay of the assessment proceedings during the period when the Settlement Commission is deciding whether to proceed or not to proceed. If we grant a stay, we will be adding a provision to the statute which is not justified."

And thereafter, it is further observed that:--

"However, we are of the view that in case the Settlement Commission does proceed with the application, then the Settlement Commission will have full power to pass any order it deems fit regarding the settlement. The assessment order or orders if passed will be no impediment to the Settlement Commission in exercising its powers if it decides to exercise them. On the other hand, if the Settlement Commission decides not to proceed with the application, there is a distinct possibility of the department not being able to realise the taxes in the circumstances of this case. So, we find that we are unable to interfere both on the ground of there being no statutory provision to justify a stay of proceedings before the Income Tax authorities and also because the circumstances of the case would not justify such an Act."

These observations will apply with equal force in the present case also and, hence, this petition stands dismissed accordingly.