Union of India v. Star Television News Ltd - 2015-LL-0325-4

Citation	2015-LL-0325-4
Appellant Name	Union of India
Respondent Name	Star Television News Ltd.
Court	SUPREME COURT
Relevant Act	Income-tax
Date of Order	25/03/2015
Judgment	View Judgment
Keyword Tags	settlement commission • cut-off date
Bot Summary:	In all these special leave petitions filed by the Union of India, the correctness of the judgment dated August 7, 2009, rendered by the Bombay High Court in a batch of writ petitions is questioned. In those writ petitions filed by various assessees, the validity of sections 245HA(1)(iv) and 245HA(3) of the Income-tax Act, 1961, as amended by the Finance Act, 2007, was challenged. The High Court, by a detailed judgment, found the aforesaid provisions to be violative of article 14, etc. At the same time, it did not invalidate these provisions as the High Court was of the opinion that it was possible to read down the provisions of section 245HA(1)(iv) in particular to avoid holding the provisions as unconstitutional. From the above discussion having arrived at a conclusion that fixing the cut-off date as 31st March, 2008, was arbitrary the provisions of section 245HA(1)(iv) to that extent will be also arbitrary. We have also held that it is possible to read down the provisions of section 245HA(1)(iv) in the manner set out earlier. We would have to read section 245HA(1)(iv) to mean that in the event the application could not be disposed of for any reasons attributable on the part of the applicant who has made an application under section 245C. Consequently, only such proceedings would abate under section 245HA(1)(iv).

JUDGMENT Order Delay condoned. In all these special leave petitions filed by Union of India, correctness of judgment dated August 7, 2009, rendered by Bombay High Court in batch of writ petitions is questioned. In those writ petitions filed by various assessees, validity of sections 245HA(1)(iv) and 245HA(3) of Income-tax Act, 1961, as amended by Finance Act, 2007, was challenged. High Court, by detailed judgment, found aforesaid provisions to be violative of article 14, etc., but at same time, it did not invalidate these provisions as High Court was of opinion that it was possible to read down provisions of section 245HA(1)(iv) in particular to avoid holding provisions as unconstitutional. conclusion so arrived at is summed up in paragraph 54 of impugned judgment, which reads as under: "54. From above discussion having arrived at conclusion that fixing cut-off date as 31st March, 2008, was arbitrary provisions of section 245HA(1)(iv) to that extent will be also arbitrary. We have also held that it is possible to read down provisions of section 245HA(1)(iv) in manner set out earlier. This recourse has been taken in order to avoid holding provisions as unconstitutional. Having so read, we would have to read section 245HA(1)(iv) to mean that in event application could not be disposed of for any reasons attributable on part of applicant who has made application under section 245C. Consequently, only such proceedings would abate under section 245HA(1)(iv). Considering above, Settlement Commission to consider whether proceedings had been delayed on account of any reasons attributable on part of applicant. If it comes to conclusion that it was not so, then to proceed with application as if not abated. Respondent No. 1 if desirous of early disposal of pending applications, to consider appointment of more Benches of Settlement Commission, more so as Benches where there is heavy pendency like Delhi and Mumbai." We are of opinion that it is well-considered judgment of High Court and does not call for any interference. All these special leave petitions are accordingly dismissed. page 106 of 317 ITR. *** Union of India v. Star Television News Ltd

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