31. M3M India Holdings
Pvt. Ltd. vs. IT Settlement Commission; [2019] 419 ITR 17
(P&H) Date of order: 22nd
October, 2019 A.Y.: 2013-14
Settlement of cases –
Section 145D(1) of ITA, 1961 – Condition precedent – Pendency of assessment
proceedings – Assessment proceedings pending till service of assessment order
upon assessee
While the assessment proceedings were pending, the assessee sent a mail
to the AO on 26th February, 2018 indicating that the assessment
proceedings should be deferred because it intended to file an application u/s
245D(1) of the Income-tax Act, 1961 before the Settlement Commission. On 27th
December, 2018, the AO finalised the assessment, passed the order and
dispatched it through post. Before it was received or even delivered by the
postal authorities, the assessee filed the application before the Settlement
Commission on 28th February, 2018. The Settlement Commission
accepted the contention of the Department that on the date of the application
the assessment proceedings having been concluded, the application would not lie
and rejected the application.
The assessee challenged the order by filing a writ petition and
contended that the assessment proceedings could not have been said to be
concluded till such time as the assessment order was not served upon the
assessee.
The Punjab and Haryana High Court allowed the writ petition and held as
under:
‘i) The assessee had communicated
to the Assessing Officer prior to the passing of the assessment order that it
was intending to move an application before the Settlement Commission. The
assessee was entitled to proceed on the basis that till the service of the
assessment order, the case continued to be pending with the Assessing Officer
till the date the assessment order was not served upon it.
ii) Consequently, the order of
the Settlement Commission rejecting the application filed by the assessee u/s
245D(1) was to be set aside.’
