Applicability of Section 115BBE rws 69, 69A 69C in a case before Settlement Commission

Applicability of provisions of Section 115BBE  read with Section 69, 69A and 69C in a case arising before Settlement Commission – Allahabad HC directs AO decide the issue

In a recent judgment, the Hon’ble Allahabad High Court has directed AO to examine non applicability of Section 115BBE read with Section 69, 69A and 69C of the Act in a case arising before Settlement Commission

ABCAUS Case Law Citation:
ABCAUS 3984 (2024) (04) HC

In the instant case, the assessee had filed a Writ Petition challenging the order passed by the Settlement Commission in invoking the provision of Section 115BBE read with Section 69, Section 69A and Section 69C of the Income Tax Act, 1961 (the Act).

The petitioner had made an application before the Settlement Commission which had been accepted and final order had been passed under Section 245D(4) of the Act.

It was submitted that the Settlement Commission (the assessing authority) had made a completely wrong computation of amount due by invoking the provision of Section 115BBE read with Section 69, 69A and 69C of the Act.

It was contended that neither the Settlement Commission is an ‘Assessing Officer’ as defined under Section 2(7A) of the Act nor the provisions of Section 69, 69A and 69C of the Act, may ever be invoked in a case arising before the Settlement Commission as the ‘Assessing Officer’ may never record necessary satisfaction i.e. otherwise a sine qua non to exercise of powers vested under Section 69, 69A and 69C of the Act.

It was submitted that the petitioner had deposited the entire due amount inasmuch as the same was part of amount seized from the petitioner. Therefore, no further amount is due. In fact, the petitioner is entitled to refund of balance amount together with interest.

Alternatively, it was contended that in any case, if such demand could ever be raised under Section 115BBE of the Act, appropriate adjustment may have been made from the amount seized lying in deposit with the revenue authorities (together with interest) that may have accrued thereon.

The Hon’ble High Court observed that the petitioner had asked the Commission for rectification of the demand to exclude the demand raised by applying under Section 115BBE of the Act.

The Hon’ble High Court inter alia directed the Assessing Officer to deal with the petitioner’s claim vis a vis non applicability of Section 115BBE read with Section 69, 69A and 69C of the Act, and pass a reasoned and speaking order within three weeks and not to take any coercive measures against the petitioner for a period of six weeks.

The Petition was disposed off on the above terms

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