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2018 (7) TMI 1734 - HC - Income TaxApplication for settlement u/s 245(D)(4) rejected - there was failure to make a full and true disclosure of its income on the part of the petitioner - Held that:- We interfere with the orders of the Settlement Commission only when it is contrary to law, perverse or the decision making process is flawed. In this case, we are of the prima-facie view that the basis of rejection is contrary to law laid down by this Court. The failure to disclose was essentially on account of Retention money, Purchase of steel, Sub- contracting and Sales Commissions. We prima-facie find that, on all the aforesaid heads, the petitioners had made a full and complete disclosure of primary facts. It is on the above undisputed facts, that a bonafide claim was made leading to the disclosed income. Non-acceptance of the claim would not ipso-facto lead to making the application for settlement bad for failure to make full and true disclosure of income. Infact this Court in Principal Commissioner of Income- Tax V/s. Income-Tax Settlement Commission, [2017 (2) TMI 861 - BOMBAY HIGH COURT] has held, that to establish there was failure to make a full and true disclosure of income as required under Section 254(C)(1) it would be necessary for the Revenue to prove that there was a non-disclosure of primary facts and not merely non-acceptance of certain claims made before the Commission. Moreover, in the present facts, so far as, retention money is concerned, the claim was made by the petitioners on the basis of the decision of this Court in Commissioner of Income-Tax V/s. Associated Cables Pvt. Ltd, [2006 (8) TMI 135 - BOMBAY HIGH COURT].
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