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2021 (7) TMI 514 - HC - Income TaxSettlement Commission order u/s 245C - orders are sought to be assailed by the Commissioner of Income Tax, the petitioner herein primarily on the ground that there was no true and full disclosure in the application filed by the second respondents in the respective writ petitions, inasmuch as the additional amount of income declared in the returns filed pursuant to notice issued u/s 153A by them was far lesser than the amount of income ultimately arrived by the 1st respondent Settlement Commission in the impugned order - as stated additional income offered for settling the case was not different from the amount that was of in the revised returns filed pursuant to notice issued under Section 153A and there was no further additional disclosure of income over and above ₹ 50,00,000/- - HELD THAT:- The total income for the block assessment years 2006-07 to 2008-09 in the returns filed by the said 2nd respondent/applicant/2nd respondent herein was ₹ 2,10,06,060/-. After the search was completed under Section 132 the said 2nd respondent/applicant was issued with the notice dated 4.1.2010 under Section 153. The last date for filing returns expired on 03.02.2010. 2nd respondent/applicant initially filed an application under Section 245C of the Income Tax Act, 1961on 12.11.2010. As mentioned elsewhere in the order, the said application was also dismissed by the 1st respondent Settlement Commission by its order dated 16.11.2010. Thereafter, the 2nd respondent/applicant filed a return on 01.12. 2010 under Section 153 A of the Act and a fresh application under Section 245C of the Income Tax Act, 1961 on 01.12.2010 before the 1st respondent Settlement Commission. The application filed before the 1st respondent Settlement Commission, the 2nd respondent/applicant offered a total income of ₹ 5,05,69,810/- for these assessment years consisting of ₹ 2,95,63,750/ - as the additional income for the purpose of settling the case under chapter XIX-A of theIncome Tax Act, 1961. 1st respondent Settlement Commission after considering the reports of the petitioner Income Tax Department added another sum ₹ 2,93,16,704/- . This amount is double the additional amount offered by the 2nd respondent/applicant in the application filed under Section 245C of the Income Tax Act, 1961 for sum of ₹ 2,95,63,750/-. The amount of income enhanced is almost 100% of the additional income offered by the 2nd respondent/applicant. Therefore, it cannot be said that there was full and true disclosure of the additional income in the application filed under Section 245C The 1st respondent Settlement Commission therefore ought to have rejected the application for by these 2nd respondent/applicants as the intention of the 2nd respondent/applicant was only to take a chance by not disclosing truly and fully the correct additional income which was not disclosed at the time of filing of original returns under Section 139 of the Income Tax Act, 1961. It was intended take advantage of limited scope of enquiry in the proceeding before the 1st respondent Settlement Commission. The impugned order of the 1st respondent Settlement Commission is liable to be quashed. The above writ petitions filed by the petitioner Commissioner of Income Tax deserves to be allowed and are accordingly allowed.
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