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2013 (7) TMI 95 - HC - Income TaxValidity of proceedings before Settlement commission - Full and true disclosure - Validity of settlement applications - Commissioner of Income tax objected on orders passes on settlement application that Applicants had neither disclosed their full and true income nor the manner in which such income had been derived - Held that:- Point of maintainability of an application under Section 245C(1) does not get foreclosed by virtue of the Settlement Commission passing an order under Section 245D(1) or Section 245D(2C) and that such an issue could be examined by the Settlement Commission at the final hearing of the matter, that is, at the stage of passing an order under Section 245D(4) - Even when the Settlement Commission decides to proceed with the application when it passes an order under Section 245D(1) or Section 245D(2C), it would not be denuded of its power to examine as to whether the assessee has made a full and true disclosure of his undisclosed income in the application for settlement - There is no stipulation for revision of an application filed under Section 245-C(1) and thus the natural corollary is that determination of income by the Settlement Commission has necessarily to be with reference to the income disclosed in the application filed under the said section in the prescribed form. All the conclusions made by the Settlement Commission up till now are only prima facie conclusions and do not foreclose the issues raised by the Revenue - According to Section 245K(2) which stipulates that where a person has made an application under Section 245C on or after the first day of June, 2007, and if such application has been allowed to be proceeded with under Section 245D(1), such person shall not subsequently be entitled to make an application under Section 245C - This is not the stage at which this Court ought to interfere with the impugned orders and the proceedings pending before the Settlement Commission - Following the decision of Commissioner of Income Tax v. K. Jayaprakash Narayanan [2009 (2) TMI 740 - SUPREME COURT OF INDIA], Commissioner of Central Excise, Vishakapatnam v. True Woods Private Ltd. [2005 (11) TMI 12 - HIGH COURT OF DELHI] and Ajmera Housing Corporation v. Commissioner of Income Tax [2010 (8) TMI 35 - SUPREME COURT OF INDIA] - Decided against the revenue.
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