S. 245A Income Tax Act | Kerala High Court Allows Settlement Application Filed Beyond Cutoff Date, Citing SC's COVID Limitation Order
The Kerala High Court has allowed the settlement application under Section 245A of the Income Tax Act filed beyond cutoff date, while citing Supreme Court's COVID limitation order. Justices A.K. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and stated that the assessee had filed...
The Kerala High Court has allowed the settlement application under Section 245A of the Income Tax Act filed beyond cutoff date, while citing Supreme Court's COVID limitation order.
Justices A.K. Jayasankaran Nambiar and P.M. Manoj referred to the order of Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation] and stated that the assessee had filed the application for settlement on 17.03.2022, which is well within the time granted by the Supreme Court taking note of the Covid pandemic situation.
The assessee can be permitted to pursue his application that was filed before the Interim Board for Settlement on 17.03.2022, added the bench.
It is the case of the assessee/appellant that although they had received the notices under Section 153A between 31.03.2021 and 30.09.2021, the application for settlement under Section 245A of the Income Tax Act could be preferred by them only on 17.03.2022.
The assessee submitted that although the applications for settlement were ready before 30.09.2021, they were granted permission to take copies of seized materials and digital devices only on 04.10.2021 and it is only thereafter that they could file the application fees to support the settlement applications that were filed.
As far as the assessee is concerned, the notices under Section 153A had all been received before the cut-off date on 30.09.2021 and the only objection that was raised against the assessee in maintaining the application for settlement before the Interim Board for Settlement was that the application was actually filed only on 17.03.2022, noted the bench.
The bench found that while considering the limitation period specified under the provisions of Chapter XIX of the Income Tax Act dealing with settlement cases, the orders passed by the Supreme Court in MA. Nos.665 of 2021 [In Re Cognizance For Extension Of Limitation], clearly states, that “in cases where the limitation would have expired during the period between 15.03.2020 and 28.02.2022, then notwithstanding the actual balance period of limitation remaining, and all persons shall have a limitation period of 90 days from 01.03.2024. In the event the actual balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply.”
The bench after applying the above Supreme Court judgment observed that inasmuch as the assessee had filed the application for settlement on 17.03.2022, which is well within the time granted by the Supreme Court taking note of the Covid pandemic situation, the assessee can be permitted to pursue his application that was filed before the Interim Board for Settlement on 17.03.2022.
In view of the above, the bench allowed the appeal filed by the assessee.
Case Title: Mr. Thomas Joseph v. Union of India
Case Number: WA NO. 430 OF 2025
Counsel for Appellant/ Assessee: Aditya Unnikrishnan