OM METALS AND MINERALS PVT. LTD. Vs. STATE

JUDGEMENT

(1.) FACTS in brief giving rise to the issue to be decided by the Special Bench. - The applicant presented an application under section 245C(1) on June 20, 1988, requesting the Settlement Commission to have its 'case' settled for the assessment years 1980 -81 to 1988 -89. The said petition was admitted by the Commission by its order under section 245D(1) dated November 9, 1989. After the presentation of the petition but before the name was admitted by the Commission, the Assessing Officer completed the assessment for the assessment year 1986 -87 on March 29, 1989, and raised a demand. We were told by Shri G. C. Sharma, Advocate, that, by an order dated March 30, 1989, the Assessing Officer had stayed the collection of this demand till December 31, 1989, without calling upon the applicant to furnish any security/guarantee. We have further been told that, in view of the order passed by the Commission under section 245D(1), the applicant had paid the additional amount of income -tax payable on the income disclosed in the application. The Commissioner of Income -tax, Jaipur, has made a petition dated January 16, 1991, to the Commission, wherein it has been stated by him that the demand raised by the Assessing Officer in respect of the assessment year 1986 -87 including interest under section 220(2) up to December 31, 1990, comes to a sizeable sum. Thereafter, he goes on to say as under in his petition :

(2.) ISSUES arising for the consideration of the Special Bench. - On the above facts, the issue arising for our consideration is whether the assessment made by the Assessing Officer for the assessment year 1986 -87 on March 29, 1989, and the demand created thereby subsists even after the petition made by the applicant under section 245C(1) has been admitted and allowed to be proceeded with ?

(3.) HEARING with regard to the preliminary objection. - On behalf of the applicant, it was submitted by Shri G. C. Sharma, Advocate, that the Commissioner of Income -tax had no locus standi to make the petition. In this connection, reference was made by Shri G. C. Sharma, Advocate, to the provisions of sub -sections (1) and (2) of section 245F, which read as under :