Union of India v. Aayana Charitable Trust

Income Tax Act, 1961 – Sections 245A, 245AA, 245B, 245C, 153A, 153C – Finance Act, 2021 – CBDT Order F.No.299/22/2021-Dir (Inv.III)/174 dated 28.09.2021 – Settlement Applications – Eligibility for Filing – Interim Board for Settlement – Whether assessees receiving notices under Sections 153A/153C after 31.03.2021 but before 30.09.2021 can maintain settlement applications before the Interim Board for Settlement – Held, CBDT order imposing eligibility condition as on 31.01.2021 (read as 31.03.2021) ultra vires Section 119(2)(b) – Applications filed on or before 30.09.2021, based on notices issued between 31.03.2021 and 30.09.2021, to be considered on merits by the Interim Board – Search proceedings under Section 132 not within the ambit of ‘case’ under Chapter XIX-A – Single Judge’s judgment set aside to the extent it included search proceedings in ‘case’ definition – Writ appeals allowed in part, directions to consider applications sustained.

Income Tax Act, 1961 – In the case of an assessee who was served with a notice under Section 153A or Section 153C, he could approach the Settlement Commission with an application for settlement, at any time after the receipt of the said notice but before the completion of the assessment.

The word ‘pending’ had to be seen as referring to the status of a ‘case’ during the period between its commencement and its conclusion or final resolution.

(Para 9)

2025 KER 43582
HIGH COURT OF KERALA
Dr. A.K. Jayasankaran Nambiar & P.M. Manoj, JJ.
W.A. Nos. 2042, 2106, 161, 180, 183, 184, 408 of 2024 & 2025; Decided on: 20.06.2025

Counsel:

For Appellants: Sri. Jose Joseph, Smt. Susie B. Varghese, Sri. Navaneeth N. Nath;

For Respondents: Sri. Jehangir D. Mistri, Sri. Anil D. Nair, Sri. R. Sivaraman, Smt. Vandana Vyas, Sri. N. Krishna Prasad.