COMMISSIONER OF INCOME TAX, VIJAYAWADA Vs. SETTLEMENT COMMISSIONER

JUDGEMENT

(1.) Writ Petition is filed by the petitioners questioning the order dated 25.02.2000 passed by the Settlement Commission (IT & WT), Additional Bench, Chennai/1st respondent in S.A.No.520/VIJ/40/99/IT, whereby the 1st respondent admitted the application filed by the 2nd respondent for the purpose of considering the same under the Chapter XIX-A of the Income Tax Act (for short, "the Act").

(2.) The affidavit sworn by Suprakash Lahiri, S/o. S.S.Lahiri, Commissioner of Income Tax, Vijayawada, filed into the Court on 18.12.2000 and the same came to be admitted on 19.12.2000. While admitting the writ petition, this Court granted interim suspension as prayed for in W.P.M.P.No.32185 of 2000 on the same day. The order impugned was challenged on the following grounds:

(3.) A counter-affidavit has been filed by the 2nd respondent denying the allegations made in the affidavit filed in support of writ petition and stated that on 19.12.2000 by the time, the writ petition came to be admitted and interim order came to be passed, final orders were passed by the Settlement Commission on 20.11.2000 under Section 245D(4) of the Act and in that view of the matter, the very writ petition itself had become infructuous. It was further averred that after considering the report filed by the 1st petitioner and considering the prima facie case of the 2nd respondent, the 1st respondent admitted the case for consideration and issued notice. Thereafter, the first petitioner filed a detailed report raising various objections opposing the 2nd respondent's application under Section 245 C(1) of the Act and the 2nd petitioner had appeared before the Settlement Commission all through and was aware of passing of the final orders. Inasmuch as the 2nd respondent never chose to question the final orders passed by the Settlement Commission/1st respondent, the 2nd respondent prayed for dismissal of the writ petition. This counter-affidavit was filed by the 2nd respondent on 17.08.2001. Thereafter, W.P.M.P.No.28188 of 2002 came to be filed before this Court on 01.11.2002 praying the court to amend the prayer in the main writ petition by inserting after the words "violative of the principles of natural justice and to set-aside the same" add before the words "and to pass such order or orders" the following words "and consequently set aside the order dated 20.11.2000 passed U/s.245(D)(4) of the Income Tax Act."