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2019 (2) TMI 336 - HC - Income TaxApplication for settlement of cases - scope of the term ‘related person’ in the ‘specified person’ - The Director of the petitioner-Company is having 100% interest in the business or profession of the specified person - Validity of application filed by the petitioner-Company under Section 245C(1) as it has not fulfilled the conditions prescribed under Section 245C(1) - Held that:- The bare perusal of definition of ‘substantial interest, as per clause (a) of clause (vi) of Explanation to Section 245(1) of the Act, 1961 clearly reveals that a share holder should carry not less than 20% of the voting power of a Company. Clubbing of share holding by different share holders to make it 20% of having substantial interest, is not permissible under the law. The submission of the petitioner that the relevant provisions need to be suitably read down to hold the petitioner-Company being covered under the expression, is wholly without substance. This court also does not agree to the submission of learned counsel for the petitioner that alternatively, the case of the petitioner-Company will fall under clause (vi)(A) of Explanation of clause (1)(a) of Section 245C as the petitioner- Company is covered by the expression of ‘any person’ who carries on a business or profession in which the specified person i.e. Shri Ram Jashandas Bhatia holds substantial interest, this court finds that the submission is wholly without any substance and even the provisions of Section 13 of the General Clauses Act to read singular as plural for the term ‘person’ used under clause (B) of Explanation, cannot be construed in the manner, as has been canvassed. This court finds that the Delhi High Court in the case of Rockland Hotels Ltd. Vs. Income Tax Settlement Commission, Principal Bench and Ors. [2015 (10) TMI 1904 - DELHI HIGH COURT] and other connected writ petitions has interpreted the entire Section 245C of the Act, 1961 dealing with the applications for settlement of the cases. Order of settlement commission sustained - Decided against the assessee.
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