Functus officio after final settlement: Delhi High Court stays revised Form 3 and grants interim protection.

Where Form 5 had already recorded full and final settlement of the disputed tax, the designated authority later issued a revised Form 3 treating the matter as a search case and cancelling the earlier forms. The Delhi High Court noted prima facie that, after issuing Form 5, the authority may have become functus officio and therefore may not have had power to alter the settled position through a revised Form 3. On that basis, the Court granted interim protection and stayed operation of the impugned Form 3 pending further proceedings.

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Issues: Whether the designated authority could issue a revised Form 3 after having issued Form 5 recording full and final settlement, and whether interim protection was warranted against operation of the revised Form 3.

Analysis: The order records that Form 5 had already been issued indicating full and final settlement of disputed tax, yet the designated authority subsequently issued a revised Form 3 treating the matter as a search case and cancelling the earlier forms. The Court found, prima facie, that once Form 5 had been issued the designated authority may have become functus officio. On that basis, the Court granted interim protection and stayed the operation of the impugned Form 3 pending further proceedings.

Conclusion: Interim relief was granted in favour of the petitioner by staying the impugned Form 3.

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