Calcutta HC upholds vested right for settlement applications post Finance Act
- Case Name: Pradeep Kumar Naredi vs. Union of India
- Judge(s): Justice Harish Tandon, and Hiranmay Bhattacharya
- Advocate(s): Adv. J.P. Khaitan, Adv. Vipul Kundalia
The Calcutta High Court ruled that taxpayers who filed settlement applications before February 1, 2021, maintained a vested right to pursue those applications despite the Finance Act 2021's retrospective amendments.
The Act abolished the Income Tax Settlement Commission (SETCOM) and created an Interim Board. The Court held that applications filed before the Act’s notification date on April 1, 2021, should be treated as pending.
It directed the Interim Board to consider such applications, setting aside previous rejections based on the new provisions. The ruling emphasized that retrospective legislation cannot impact vested rights.
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