Applications made by assessees under s. 245C will not abate pending hearing and final disposal of the writ petitions questioning the constitutional validity of s. 245HA; however, impugned order is set aside and the High Court is directed to hear and decide the writ petition on the question of constitutional validity of s. 245HA.

Delay condoned.

Before the High Court, the assessee has challenged the validity of Section 245HA of the Income Tax Act. By interim orders, several High Courts have taken a view that applications made by assessees under Section 245HA will not abate pending hearing and final disposal of the writ petitions questioning the constitutional validity of Section 245HA. In our view, prima facie, the said High Courts are right in passing the interim order particularly when it is the case of the assessee that the material disclosed by the assessee should not be used by the Department in assessment proceedings. We express no opinion on the finality of the above issue. This Court has upheld such interim orders in conjoint cases.

Consequently, we see no reason to interfere to the extent indicated above. However, we set aside the impugned order disposing of Writ Petition by directing the High Court to hear and decide the Writ Petition on question of constitutional validity of Section 245HA. Special Leave Petition is disposed of accordingly.

(N. ANNAPURNA) (MADHU SAXENA)

COURT MASTER COURT MASTER