SATISH BALA MALHOTRA V. UNION OF INDIA AND OTHERS

CWP/18244/2007

AI Insights

The case revolves around the challenge to certain amendments made by the Finance Act, 2007 to the Income Tax Act, 1961 and the Wealth Tax Act, 1957. The amendments in question pertained to the procedural and substantive changes regarding the settlement applications under these acts. The petitioners argued that the amendments were arbitrary and unconstitutional, leading to a bunch of writ petitions being filed. The High Court's decision was influenced by the precedent set by the Bombay High Court and similar cases in other jurisdictions, leading to a common order dismissing the petitions.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 684499 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 21-09-2012
• Assessment Year: misc
• Other Referred Cases: Star Television News Ltd. v. Union of India and others, (2009) 317 ITR 66 (Bom), MD. Sanaul Haque v. UOI, order dated 21.03.2012
• Laws Referred To: Income Tax Act, 1961, Wealth Tax Act, 1957
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: ANMOL RATTAN SIDHU
• Assessee Lawyers: ALOK MITTAL
• Keywords: Income Tax; Settlement application; Wealth Tax; Finance Act, 2007
• Section: 245D(2D); 245D(4A); 245D(1A); 245HA(1)(iv); 22D(2A); 22D(2D); 22HA

Judgement Text

"CWP No.18244 of 2007 [ 1 ] ***** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No.18244 of 2007 Date of decision:21.09.2012 Smt. Satish Bala Malhotra ...Petitioner Vs. Union of India and others ...Respondents CORAM: Hon'ble the Acting Chief Justice Jasbir Singh Hon'ble Mr. Justice Rakesh Kumar Jain Present: Mr. Alok Mittal, Advocate, for Mr. Akshay Bhan, Advocate, for the petitioner. Dr. Anmol Rattan Sidhu, Senior Advocate, with Ms. Sonika Kapadia, Advocate, for the respondents. ***** Rakesh Kumar Jain, J. A bunch of 61 writ petitions bearing CWP Nos.18244 of 2007, 96 to 105, 394 to 397, 1450 to 1454, 1459 to 1461, 1814, 1821, 1872, 1873, 2821, 2827, 2834 to 2838, 5276, 5290, 5293, 5298, 5300, 5305, 5309, 5310, 5311, 5342, 5343, 5354, 5360, 5363, 5365, 5366, 5367, 5368, 5373, 5375, 5376, 5377, 5378, 5380, 9048, 9053 and 9150 of 2008 is being disposed of by this common order due to similarity of question of law therein. The genesis of this litigation is the amendment in the Income Tax Act, 1961 [for short “the Act”] and Wealth Tax Act, 1957 CWP No.18244 of 2007 [ 2 ] ***** [for short “1957 Act”] by the Finance Act, 2007 [for short “2007 Act”]. The petitioners have twofold grievance in which Sections 245D(1A), 245D(2D), 245D(4A), 245HA(1)(iv) of the Act, Sections 22D(2A), 22D(2D) and 22HA of the 1957 Act have been challenged being arbitrary and unconstitutional. The import of amendment in both the aforesaid Acts is the same as where the settlement application is filed before 1st June, 2007, the Settlement Commissioner shall have to pass an order on or before 31.03.2008 and in case the order is not passed effectively deciding the settlement application on or before 31.03.2008, it would abate by operation of law. The petitioners were also expected to pay additional tax on the income disclosed in the settlement application and interest thereon before 31.07.2007, failing which their application was to be abated by operation of law. Taking note of the facts from CWP No.18244 of 2007, the decision was put on hold and the case was adjourned sine die to await orders of Hon'ble the Supreme Court in CWP No.113 of 2008 titled as “Prabhu Dayal Vs. Union of India and others”, which was withdrawn on 11.03.2011. During the course of hearing, learned counsel for the petitioner and the Assistant Solicitor General of India, appearing on behalf of the Income Tax Department, were ad idem that all the aforesaid writ petitions can be disposed of in terms of the decision rendered by the Division Bench of the Bombay High Court in the case CWP No.18244 of 2007 [ 3 ] ***** of Star Television News Ltd. v. Union of India and others, (2009) 317 ITR 66 (Bom), which has been followed by the High Court of Jharkhand in the case of MD. Sanaul Haque v. UOI vide its order dated 21.03.2012, while deciding a similar bunch of cases. We, thus, dispose of all the aforesaid writ petitions, in terms of the decision in the case of Star Television News Ltd. v. Union of India and others, (2009) 317 ITR 66 (Bom). [ JASBIR SINGH ] [ RAKESH KUMAR JAIN ] ACTING CHIEF JUSTICE JUDGE 21.09.2012 vinod* "