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2020 (5) TMI 518 - HC - Income TaxAdmitted liability in terms of Section 245D (2A) - large-scale suppression resorted by the petitioner - HELD THAT:- The 1st respondent has accepted that the statement of 2nd respondent that it retained only 5% of the amount paid to it by BSAL as commission. Since the 2nd respondent agreed to add another amount of ₹ 1.5 crores to the aforesaid sum as undisclosed income the 1st respondent has accepted the case of the 2nd respondent. Arithmetic of the transactions disclosed before the 1st respondent Settlement Commission do not add up and clearly shows that there were large-scale suppression resorted by the petitioner not only before the assessing officer but also before the 1st respondent settlement commission. The 1st respondent Settlement Commission has accepted the case of the 2nd respondent that a sum of ₹ 20.14 crores was directly paid by BSAL by opening a LC directly in favour of the German company and that the amount was not received by the petitioner. There are several discrepancies in the manner in which the case has been allowed to be settled by the 1st respondent settlement commission. The calculations has been accepted without any deliberations do not inspire confidence. There are several disputed questions of fact which have been glossed over by the 1st respondent Settlement Commission while settling be case of the 2nd respondent vide impugned order. This court is not sitting in appeal against the impugned order of the 1st respondent Settlement Commission, find sufficient reasons to interfere with the impugned order as there are several contradictions and the 2nd respondent appears to have not disclosed truly all facts that are required for settling the case. The impugned order has accepted cases without any discussions, therefore of the view that the impugned order is not sustainable. The impugned order passed by the 1st respondent is quashed and the case is remanded back to the 1st respondent Settlement Commission to pass a fresh order after considering the objections of the petitioner filed under rule 9 of the Settlement Commission (Procedure) Rules 1997. Since the dispute pertains to the assessment years 1997-98 and 1999-2000 and the application filed by the 2nd respondent was of the year 2005, the 1st respondent Settlement Commission is requested to pass a fresh order within a period of 6 months from the date of receipt of this order after considering the report of the petitioner filed under Section 9 of the Settlement Commission (Procedure) Rules 1997 through videoconferencing, if situations so warrants on account of continuance of Covid19 pandemic.
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