2011 (8) TMI 467 - ALLAHABAD HIGH COURT

Powers and procedure of Settlement Commission - the search operation was carried on by the department and certain documents were seized by it - The department was in possession of the entire material including the investment made by the assessee, therefore, it cannot be said that the assessee had played any fraud or mis-represented the fact - The department was very much a party before the Settlement Commission - Moreover the order of the Settlement Commission has been allowed to become final - The Settlement Commission, by operative portion has settled the income of the assessee and provided immunity with the rider that the order would be void if it was found subsequently that the same was obtained by fraud or misrepresentation of facts - It is not the case of the department that the order was obtained by fraud or misrepresentation of fact - The Assessing Officer, therefore, has no jurisdiction to issue the impugned notice for making further enquiry in the matter in view of sections 245D(6) and 245-1 of the Income-tax Act - There cannot possibly be piecemeal determination of the income of an assessee for relevant period, one by the Settlement Commission - Thus, the order of the Settlement Commission is conclusive, no power vests in the Assessing Officer to issue notice in respect of the period and income covered by the order of the Settlement Commission.