Assessment proceedings continue until service of the assessment order, keeping a settlement application maintainable under tax law.

For purposes of an application under Chapter XIXA of the Income-tax Act, 1961, assessment proceedings remain pending until the assessment order is served on the assessee. The High Court followed the view that service of the order, not merely its passing, marks the end of pendency from the assessee's perspective. It also noted that the assessee had already informed the Assessing Officer of its intention to approach the Settlement Commission, supporting the conclusion that the settlement application was moved in time. The rejection of the application was therefore set aside, and the settlement application was held maintainable.

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Issues: Whether assessment proceedings can be treated as pending for the purpose of an application before the Settlement Commission until the assessment order is served on the assessee.

Analysis: The dispute turned on the point when assessment proceedings come to an end for invoking Chapter XIXA of the Income-tax Act, 1961. The order distinguished authority dealing with limitation for issuance or service of notice and followed the view that, from the assessee's perspective, proceedings continue until the assessment order is served. The petitioner's prior intimation to the Assessing Officer that it intended to approach the Settlement Commission also supported the claim that the application was moved before service of the assessment order.

Conclusion: The assessment proceedings were pending until service of the assessment order, so the settlement application was maintainable. The impugned order rejecting the application was set aside.

Ratio Decidendi: For purposes of an application under Chapter XIXA of the Income-tax Act, 1961, assessment proceedings remain pending until the assessment order is served on the assessee.

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