2021 (3) TMI 90

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....nterim stay of Exts.P1 and P2 series. 2. Chapter XIX-A of the Income Tax Act deals with settlement of cases. The Union Finance Bill 2021, with effect from 01.02.2021 repealed Section 245C of Chapter XIX-A of Income Tax Act, 1961 (for short 'the Act'). The petitioner received notices dated 14.01.2020 and 23.11.2020 under Sections 153C and 143(2) of the Act. The petitioner, with effect from 01.02.2021, since is denied the statutory right available to an assessee to move for settlement of cases under Chapter XIX-A and also that the Settlement Commissioner from 01.02.2021 was not receiving the applications from the assessee, has filed the instant writ petition for appropriate directions, including direction to receive the application....

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....essing officer is precluded from finalizing the assessment, Section 153B Explanation (i) protects the interest of Revenue and subject to the outcome of writ petition the consideration of application filed for settlement could be proceeded with by the Assessing Officer. Therefore, it is argued that the petitioner satisfies the prima facie case. Hence, direction for accepting application for settlement of issue and as continuation thereto, appropriate stay or status quo orders on Exts.P1 and P2 could have been made by the learned Single Judge. He prays for allowing the appeal. 4. Learned Senior Advocate P.K.R. Menon appearing for respondent argues that the direction is issued to accept the application of petitioner for settlement under Cha....

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.... of petitioner against not granting interim stay of Exts.P1 and P2. The scheme provided for under Chapter XIX-A envisages different steps and this Court bears in perspective Section 245A(b) defining what 'case' means. The argument of learned Senior Counsel is that in the event the assessment order is made on Exts.P1 and P2 notices, the petitioner would be dis-entitled from working out the right accepted by Chapter XIX-A of the Act. As rightly argued by Senior Advocate Aravind P Datar the consideration of stay vis-a- vis Exts.P1 and P2 by this Court would not also cause prejudice or hardship to the Department, in view of Section 153B explanation (i). At this junction Exts.P1 and P2 result in assessment orders, then the claim or right....