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Sandeep Singh v. Union of India

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 418 of 2017)Decided 13 Jan 2017
Civil Appeal No. 418 of 2017
Justice Kurian Joseph · Justice A.M. Khanwilkar

Background

The appellant had been granted immunity from prosecution by the Income Tax Settlement Commission under Section 245H of the Income Tax Act, 1961, conditional on paying a specified sum by 31 July 2015. He failed to pay within that deadline, which under Section 245H(1A) would normally cause the immunity to stand automatically withdrawn. However, all the due payments were in fact made before he approached the Supreme Court by special leave petition in January 2016.

Decision Breakdown

The Supreme Court noted that Section 245H(1A) itself allows the Settlement Commission to extend time for payment. Given that the payments had already been made in full by the time the matter reached the Court, the Court held it unnecessary to send the appellant back to the Settlement Commission merely to formally seek an extension. It directed that, for all purposes, the appellant be treated as having made the payments within the time permitted under Section 245H(1A), and allowed the appeal with no order as to costs.

Lesson Learnt

Missing a payment deadline linked to an income-tax settlement does not always mean an irreversible loss of immunity: if the dues are genuinely cleared before the matter is finally adjudicated, courts can treat the delay as cured rather than insisting on a formal, time-consuming return to the original authority.

Official source (sci.gov.in)View Judgment (PDF)

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