Writ appeal dismissed; interim board wrongly rejected applications lacking returns by 31.01.2021 under Section 245A Explanation Clause (iv)

Writ appeal dismissed; HC upheld the Single Judge's direction that the Interim Board for Settlement erred in treating certain applications as invalid for lack of returns as of 31.01.2021 because, under the Division Bench's ruling (now affirmed by the SC), applications filed between 01.02.2021 and 31.03.2021 are deemed pending for Clause (iv) of the Explanation to Section 245A. The appellant conceded applicability of that precedent and complied with the Single Judge's order; accordingly the HC found no merit in the appeal.

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Writ appeal against the Single Judge's order dated 25.04.2024 in WP No. 2357/2024 challenging the Interim Board for Settlement order of 27.12.2023. The respondent's application to the Interim Board was accepted for AY 2014-15 to 2019-20 but held invalid insofar as the assessee had not filed the return of income as on 31.01.2021. The core legal question was whether there is "no deemed pendency as per Clause [iv] of Explanation to Section 245A of the Income Tax Act, 1961." Reliance was placed on the Division Bench rulings in Jain Metal Rolling Mills and Ashwini Fisheries Pvt. Ltd., which held that applications arising between 01.02.2021 and 31.03.2021 "shall be deemed to be pending applications for the purpose of consideration by Interim Board." The Single Judge applied that precedent; the appellant did not dispute its applicability. The Division Bench decision was upheld by the Supreme Court on 09.07.2024 in SLP [C] Diary No. 21948/2024. As the Single Judge's direction has been complied with and precedent controls, the writ appeal is dismissed; connected miscellaneous petition closed; no costs.

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