Court sets aside orders, directs petitioners to file applications with Income Tax Settlement Commission

The Court allowed the writ petitions, set aside the impugned orders, and directed the petitioners to file applications before the Income Tax Settlement Commission for consideration under the provisions of the Black Money Act, 2015.

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Issues:
Challenging orders passed by the Income Tax Settlement Commission on jurisdiction to entertain applications offering undisclosed foreign income and assets.

Analysis:
The petitioners filed writ petitions challenging orders by the Income Tax Settlement Commission dated 30.06.2015 and 15.07.2015, rejecting their applications for undisclosed foreign income and assets. The Commission stated it lacked jurisdiction to entertain such applications under the Income Tax Act. The petitioners re-submitted applications, but they were also rejected based on jurisdictional grounds. The respondents argued that the Black Money Act, 2015 came into effect on 01.07.2015, after the petitioners filed their returns and received notice under Section 148. The respondents contended that the applications were maintainable under the new Act.

The Court considered the stand taken by the respondents based on the Black Money Act, 2015 coming into effect on 01.07.2015. Since the petitioners had filed their returns and received notice before this date, the Court held that the applications submitted by the petitioners before the Commission were maintainable. Consequently, the Court allowed the writ petitions, set aside the impugned orders, and directed the petitioners to file applications before the Income Tax Settlement Commission for consideration under the provisions of the new Act. No costs were awarded, and connected Miscellaneous Petitions were closed.

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