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2016 (5) TMI 291 - HC - Income TaxSettlement Commission - non consideration of petitioner's objections - Held that:- Bearing in mind that the application for Settlement would abate if the same is not decided by the Settlement Commission before September, 2016, relegating the Respondent-Applicant to the adjudication proceedings under the Act it may result in Respondent-Applicant's application for settlement becoming fatal. This is particularly so as the application for settlement is ready for final hearing under Section 245D(4) of the Act and listed on to 11th May, 2016 before the Settlement Commission. Therefore, if on hearing the parties completely, we come to a view that the impugned order needs to be set aside and restored to the Settlement Commission, it would take up much time, resulting in abatement of the settlement application. This delay in moving the Petition is entirely due to the lackadaisical attitude of the Revenue in not moving this Petition expeditiously, challenging the interim order under Section 245D(2C) of the Act. Almost eleven months out of the eighteen months were lost in the Petitioner not moving this Court i.e. from May, 2015 to April, 2016. This coupled with the fact that before the Settlement Commission, the Revenue has after the impugned order proceeded with filing of its report under Section 245D(3) of the Act. Therefore, we are not inclined to consider the challenge in this Petition in detail in view of the peculiar facts and circumstances of this case. In these facts, it would meet the interest of justice if the Settlement Commission will deal with all the issues of full and true disclosure of income in its order under Section 245D(4) of the Act being raised by the Revenue not only in the Commissioner's Report under Section 245D(2B) of the Act but also under Section 245D(3) of the Act. This is so as it is the Revenue's case that all issues raised by them have not been adequately dealt with in the impugned order passed at the stage of Section 245D(2C) of the Act. In the above view, in the peculiar facts of this case, we are not disturbing the impugned order dated 21st May, 2015 of the Settlement Commission. However, we direct the Settlement Commission to consider the petitioner's objections as recorded in the Commissioner's report under 245D(2B) of the Act at the time of passing an order under Section 245D(4) of the Act.
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