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2017 (5) TMI 829 - Commission - Income TaxDisclosure of additional income - application for settlement under section 245C(1) - whether for every year mentioned in the application there should be a disclosure? - fundamental test of "full and true disclosure" - Held that:- We hold that there need not be disclosure of additional income in every year that is covered by the application. The principle laid down in the case of Airtech Private Ltd. [1994 (6) TMI 192 - INCOME TAX SETTLEMENT COMMISSION ] continues to hold good and we affirm it. We also hold in this regard that there is no change in law in 2007 or 2010 which would affect the conclusion drawn above. Whether in each of the years wherein additional income has been disclosed, there has to be additional tax liability? - Held that:- It can be said for sure that the additional tax liability as per the application should exceed the threshold limit as mentioned in proviso to section 245C(1) such that the application could be admitted. We are in agreement with the contention of the authorised representative that so long as the threshold limit of tax as laid down in section 245C is exceeded there is no requirement that there should be additional tax liability for every year for which additional income is disclosed. We therefore hold that there is no requirement in the law that in each year where the additional income has been disclosed there should be additional tax payable, so long as the threshold limit of tax as provided in section 245C(1) is exceeded. We also hold, in view of the discussion above, that the amendments brought about in the proviso to section 245C(1) read with section 245A(b) by the Finance Acts 2007 and 2010 have not affected the legal position as far as the question posed before us is concerned and therefore the decision of the Special Bench rendered in the case of Airtech Private Ltd. [supra] prevails and is good law.
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